Home fitness had a big impact early in the pandemic. People were stuck at home, gyms were closed, and training options suddenly seemed to plummet. As with the videoconferencing revolution, many startups have been waiting to jump on this sudden opportunity.
As expected, interest in some services waned when the world returned to relative normalcy. I’d never say the reopening of the gym was the only cause of Peloton’s struggles, but once reality set in, an over-commitment to potential growth quickly caught up with the company.
But just like video conferencing companies, the swing of the pendulum certainly doesn’t mean the new technology will go away entirely. London-based Quell today announced his $10 million Series A led by Tencent with participation from Khosla Ventures, Heartcore Capital, Social Impact Capital and Naval Ravikant.
“The COVID pandemic has forced many gyms around the world to close, providing an incredible tailwind for the digital fitness sector that has certainly benefited Quell in the early stages,” co-founder “When restrictions were lifted, gyms recovered faster than expected, with some chains reporting membership numbers back to pre-pandemic levels. Investors spoken to share our view that the gym is an unappealing “default” exercise option for most people. People go to the gym because there is no better, more fun option with a lower barrier to entry.
Of course, the shift in interest in fitness coincides with a macroeconomic slowdown that is impacting overall investment.
“The current economic climate is having a significant impact on VC risk appetite, prompting a significant revision to 2021 valuation spikes and creating a more competitive funding environment for startups. Even in the round, the emphasis is on the numbers, raising expectations for PMF evidence,” Brookhouse said. “We are starting to see signs of this easing, a little sooner than many analysts expected. It gives me confidence to see it continue.”
Quell takes a gamified approach to the market with resistance bands designed for a more active gaming/workout experience. The system launched with his fighting game Shardfall, with more titles to come. Part of the funds will be used to expand the software and increase the company’s headcount.
“We will grow our team from 30 to 50+ people and focus this expansion on game and core platform development,” says Brookhouse. “Series A will allow him to rapidly grow Shardfall and develop his next two games as he launches his game in live service.”
The system is available for pre-order now for $249 and is expected to ship later this year. The company doesn’t currently offer a subscription service, but says it’s exploring ways to do so. VR is also possible, but there are no concrete plans to add that feature at this time.
“VR has opened the door to great new immersive experiences in the gaming industry, but currently suffers from significant shortcomings in the context of fitness,” adds Brookhouse. “Many people find their headsets too heavy to work out because they sweat too much, or suffer from motion sickness during intense play. There are limits to the effectiveness of these types of workouts.”
