Holofit By Holodia
HOLOFIT by Holodia, with a valuation of $25 million, is raising funds on Wefunder. It is the patented XR fitness technology that makes fitness fun. HOLOFIT by Holodia offers an immersive fitness experience that is gamified to distract users from the pain of working out and making them addicted to it. The business has more than $1 million in annual recurring revenues and has achieved 35% average year-over-year growth in the last three years. Bojana Knezevic and Peter Shahin Schou Lauritzen founded HOLOFIT by Holodia in August 2021. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $500,000. The campaign proceeds will be used for development costs, digital marketing, and AI content development.
Investment Overview
Raised: $70,145
Deal Terms
Company & Team
Company
- Year Founded
- 2017
- Industry
- Fitness & Wellness
- Tech Sector
- Distribution Model
- B2B/B2C
- Margin
- Medium
- Capital Intensity
- Low
Financials
- Revenue +18% YoY
- $1,053,584
- Monthly Burn
- $11,500
-
Runway
- 5.4 months
- Gross Margin
- 59%
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Synopsis
Holofit By Holodia operates within the fitness and wellness industry, offering an enhanced workout experience through its patented extended reality (XR) fitness technology. The company provides a virtual reality (VR) platform that transforms traditional workouts into immersive experiences, allowing users to engage in fitness activities while exploring virtual worlds. This approach aims to make exercise more enjoyable by gamifying the experience, which can help users stay motivated and consistent in their fitness routines.
The primary customers of Holofit By Holodia include both individual fitness enthusiasts and fitness centers looking to integrate advanced technology into their offerings. By targeting both B2B and B2C segments, the company caters to a diverse customer base seeking innovative fitness solutions that combine entertainment with exercise.
The problem addressed by Holofit By Holodia is the challenge of maintaining motivation during workouts, which can often be perceived as monotonous and physically demanding. Traditional exercise routines may lead to a lack of engagement, causing individuals to abandon their fitness goals.
Holofit By Holodia's solution is a VR fitness platform that leverages real-time graphics to create engaging virtual environments. This platform allows users to immerse themselves in interactive worlds while exercising, providing a distraction from physical exertion and enhancing overall workout enjoyment. By offering a more captivating exercise experience, the company aims to improve adherence to fitness routines.
In everyday life, many individuals struggle with the motivation to maintain regular exercise due to the repetitive nature of traditional workouts. Holofit By Holodia addresses this by transforming exercise into an engaging activity, similar to playing a video game. This approach can resonate with those who find traditional fitness routines uninspiring, offering a more appealing alternative that combines physical activity with entertainment.
Price
Holofit By Holodia is raising funds through a Simple Agreement for Future Equity (SAFE) with a valuation cap of $25 million and a 10% discount. This structure allows investors to convert their investment into equity at a future equity financing round, subject to the valuation cap and discount terms. The SAFE does not accrue interest, unlike a convertible note, and is designed to simplify the investment process.
For startups like Holofit By Holodia, the exit potential often hinges on achieving significant growth and market penetration. To provide a 10X return to investors, the company would need to reach a post-exit valuation of approximately $250 million (not accounting for dilution). This target would likely require substantial increases in revenue, market share, and strategic positioning within the fitness and wellness industry.
Holofit By Holodia currently has a revenue multiple of 23.7x, which suggests the deal may be overvalued given its current stage and growth trajectory. High revenue multiples can indicate that the company is offering terms that may not be favorable to investors, particularly if future growth does not meet expectations.
Investors considering participation in this SAFE round should weigh the potential for dilution in future funding rounds, as the 10X return calculations do not account for such factors. The decision to invest should be based on a careful assessment of the company's prospects, market conditions, and the terms of the SAFE agreement.
Market
The market for Holofit By Holodia operates within the U.S. Metaverse Health and Fitness sector, which is valued at approximately $3.2 billion. This market is experiencing a robust growth rate of 34.7%, driven by increasing consumer interest in immersive and interactive fitness experiences. Key market drivers include the rising demand for innovative fitness solutions that integrate technology to enhance engagement and user experience.
As consumers continue to seek out engaging and entertaining ways to maintain physical health, the integration of virtual reality into fitness regimens is becoming more prevalent. This trend positively impacts Holofit By Holodia by aligning with its core offering—an engaging, gamified fitness experience. The growing adoption of XR technology in fitness could further bolster the company's growth as technology becomes more accessible and cost-effective.
While the broader market encompasses various types of metaverse and digital health technologies, Holofit By Holodia specifically targets the intersection of fitness and virtual reality. This positions the company well within a niche segment that caters to both fitness enthusiasts and technology adopters who seek to enhance their workout routines with immersive experiences. The potential market size for this niche is significant, given the overall growth in consumer interest in both fitness and virtual reality solutions.
The ability of Holofit By Holodia to capture a significant share of this growing market will depend on its capacity to innovate and adapt its offerings in line with consumer preferences and technological advancements. The competitive landscape requires the company to continuously refine its product to meet evolving market demands.
Team
Holofit By Holodia is led by a team with diverse experience in technology and business management, crucial for driving the company's growth in the XR fitness space. The COO, Bojana Knezevic, brings 16 years of industry experience and has a background in high-level managerial roles. Her expertise in operations is vital for scaling the company's platform and optimizing its business processes.
CEO Peter Shahin Schou Lauritzen, with 8 years of relevant industry experience, contributes strategic leadership and a vision for integrating XR technology into fitness. His part-time role, however, might present challenges in maintaining consistent strategic oversight and operational execution.
The team's experience aligns well with Holofit By Holodia's goals of expanding its market presence and enhancing its product offerings. Knezevic's operational acumen supports the company's objective of achieving efficiency in service delivery, while Lauritzen's strategic insight is key for navigating the competitive landscape and identifying growth opportunities.
Despite the strengths in operations and strategic leadership, the team may benefit from additional expertise in areas such as marketing and sales, which are critical for expanding customer acquisition and retention. Addressing these gaps could enhance the company's ability to meet its future milestones and strengthen its market position.
Differentiation
Holofit By Holodia operates in a competitive landscape with several key players in the XR fitness technology space. Notable competitors include Supernatural and FitXR, both of which offer immersive fitness experiences through virtual reality platforms.
Supernatural is a larger company known for its high-quality VR workouts that focus on music-driven exercise routines. It provides a subscription model similar to Holofit By Holodia, but with a strong emphasis on guided workouts and personalized coaching. FitXR, on the other hand, offers a variety of VR fitness classes, including boxing and dance, targeting users looking for diverse workout options. Both competitors provide pricing models that are competitive with Holofit By Holodia, catering to consumers willing to invest in premium fitness experiences.
Holofit By Holodia distinguishes itself with its patented XR fitness technology, which allows users to explore virtual worlds while working out. This feature appeals to users who seek a more gamified and exploratory approach to fitness, setting it apart from competitors that focus more on traditional workout structures.
The customer demographics for Holofit By Holodia primarily include tech-savvy fitness enthusiasts who are interested in integrating technology into their workout routines. This demographic often consists of younger adults who are early adopters of new technologies and are willing to invest in products that enhance their fitness experiences. Additionally, fitness centers looking to incorporate advanced technology into their offerings are a significant target market for the company's B2B segment.
Performance
Holofit By Holodia has demonstrated a consistent growth trajectory, achieving an average annual revenue growth rate of 35% over the past three years. The company's revenue increased from $894k in the previous fiscal year to over $1.05 million in the most recent fiscal year, reflecting its capacity to expand its customer base and enhance its market presence.
The financial metrics reveal a monthly burn rate of approximately $39.6k, with the most recent cash on hand reported at $62.5k. This suggests that while the company is actively managing its expenses, it will need to secure additional funding to maintain its operational momentum and support further growth initiatives.
Holofit By Holodia's annual recurring revenue has surpassed $1 million, indicating a stable revenue stream from its subscription-based business model. This recurring revenue is a positive indicator of customer retention and satisfaction, which are crucial for sustaining long-term growth.
Despite the company's progress, it remains in the pre-profit stage, with a net income of -$474.8k for the most recent fiscal year. This underscores the importance of balancing revenue growth with cost management to achieve profitability. As Holofit By Holodia continues to scale, maintaining financial discipline will be essential to ensure sustainable growth.
Risk
Holofit By Holodia faces several specific risks that potential investors should consider. One notable risk is the company's relatively low cash runway, which is reflected in its high monthly burn rate of approximately $39.6k. This financial pressure may necessitate additional fundraising efforts in the near term to sustain operations and support growth initiatives.
The company operates with a high revenue multiple of 23.7x, which may indicate overvaluation, especially in the context of its current growth rate and market position. Such a high multiple can reflect a mismatch between current financial performance and investor expectations, potentially leading to challenges in future funding rounds.
Investors should also be aware of the company's reliance on a part-time CEO, which might impact strategic decision-making and operational oversight. Ensuring strong leadership and dedicated management will be vital for navigating the competitive landscape and achieving growth objectives.
Bullish Outlook
The bullish outlook for Holofit By Holodia is supported by several positive factors that suggest strong growth potential. The company operates in the expanding U.S. Metaverse Health and Fitness market, valued at $3.2 billion and growing at 34.7% annually. This provides a significant opportunity to capture market share as consumer interest in immersive fitness solutions continues to rise.
Holofit By Holodia's unique strength lies in its patented XR fitness technology, which sets it apart from competitors by offering a gamified and immersive workout experience. This differentiation appeals to a niche market of tech-savvy fitness enthusiasts and provides a competitive advantage in attracting and retaining users. The company's ability to deliver a distinctive product aligns well with current market trends favoring technologically enhanced fitness experiences.
Growth drivers for Holofit By Holodia include leveraging emerging XR technologies to enhance its platform's capabilities. The company has the potential to expand into new markets, both geographically and demographically, by targeting fitness centers and individual users seeking advanced workout solutions. Continued product development and innovation will be critical in maintaining the company's edge in the competitive landscape.
Financially, Holofit By Holodia has demonstrated strong revenue growth, with a 35% average annual increase over recent years and more than $1 million in annual recurring revenue. This growth trajectory indicates a robust demand for its offerings. While the company operates with a high revenue multiple, its sustained revenue growth supports a positive outlook on its ability to continue scaling and attracting further investment.
Bearish Outlook
The bearish outlook for Holofit By Holodia is influenced by several key factors that may negatively impact the company's future prospects. Market challenges include the highly competitive nature of the XR fitness space, where rivals like Supernatural and FitXR have already established strong footholds. Holofit By Holodia's differentiation through patented technology may not be sufficient to overcome these entrenched competitors, particularly if they continue to innovate and expand their offerings.
Leadership concerns arise from the part-time role of CEO Peter Shahin Schou Lauritzen, which may affect strategic direction and operational consistency. This could hinder the company's ability to swiftly adapt to market changes and effectively implement growth strategies. Additionally, potential gaps in marketing and sales expertise could limit customer acquisition and retention, crucial for expanding the user base in a competitive market.
Investment terms also pose challenges, with a high revenue multiple of 23.7x indicating potential overvaluation compared to industry norms. This may deter investors looking for more attractively valued opportunities. The reliance on a SAFE structure with a $25 million valuation cap might also limit the appeal for investors seeking more immediate equity stakes.
Growth inhibitors include potential technological hurdles in maintaining and advancing their XR platform. As competitors enhance their offerings, Holofit By Holodia will need to continuously innovate to keep pace. Regulatory hurdles, while not currently prominent, could emerge as XR technology becomes more widespread, potentially impacting operational scalability.
Financially, the company faces challenges with a notable monthly burn rate of $39.6k and limited cash reserves of $62.5k, suggesting a need for continued fundraising to sustain operations. This financial pressure may impact the company's ability to invest in necessary growth initiatives and technological advancements.
Executive Summary
Holofit By Holodia is a company in the fitness and wellness industry, offering a VR platform that enhances workout experiences through gamification and immersive environments. The core customers include tech-savvy fitness enthusiasts and fitness centers integrating advanced technology into their offerings.
The company raises funds through a SAFE with a $25 million valuation cap and a 10% discount. With an average annual revenue growth of 35%, it has surpassed $1 million in annual recurring revenue. However, the company operates with a high revenue multiple of 23.7x, indicating potential overvaluation. Financially, it maintains a monthly burn rate of $39.6k, with recent cash on hand at $62.5k, reflecting a need for additional funding to sustain operations.
The U.S. Metaverse Health and Fitness market, valued at $3.2 billion and growing at 34.7%, provides a favorable backdrop for Holofit By Holodia. The company's differentiation lies in its unique XR fitness technology, targeting a niche segment that values immersive and engaging workout experiences. Competitors like Supernatural and FitXR offer alternative VR fitness solutions, but Holofit By Holodia's patented technology sets it apart.
The bullish outlook highlights the company's alignment with market trends, strong revenue growth, and unique product offering, positioning it well to capitalize on the expanding market. Conversely, the bearish outlook underscores the risks of high valuation, need for additional funding, and potential leadership gaps, which could impede growth.
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Company Funding & Growth
Funding history
- Total Prior Capital Raised
- $2,855,110
- VC Backed?
- No
Growth Charts
Revenue History
Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.
Valuation History
Price per Share History
Note: Share prices shown in earlier rounds may not be indicative of any stock splits.