Crowdfunding: Has the Wellness Industry Lost Interest?
Four out of every five crowdfunding campaigns fail, yet for many fledgeling wellness startups it’s the only way to turn a pipe dream into reality. Is it the best option? Is it worth the risk? And, if so, what’s the secret to success?
This summer boutique fitness studio 1Rebel, the self-anointed “King of Gyms”, opened a fifth all-singing, all-dancing spin studio amphitheatre in London’s Victoria. It’s part of an aggressive expansion across the capital, made possible after securing £6.6 million in funding from private equity firm Codex Capital.
Read More: 1Rebel Opens World’s First Spin Studio Amphitheatre In London
In the past, 1Rebel founders James Balfour and Giles Dean raised £4.5 million across two successful campaigns through crowdfunding, a FinTech innovation that has revolutionised finance raising, enabling budding and established entrepreneurs to bring new business ventures to market around the globe.
Equity crowdfunding models, such as CrowdCube, Seedrs and Indiegogo, and rewards-based models, in particular Kickstarter, have enabled the wellness sector to thrive, with benefactors ranging from one-man operations to established retail brands looking to expand their empire across the capital.
But for every successful Core Collective (raising £2.1 million), WIT Fitness (£840K) and ManíLife (£100K) campaign, there are companies such as tech startup Fiit ($3.2 million) and indoor cycling giants Peloton (an eye-watering $444 million) who have bucked the trend, relying on the experience and deep pockets of opportunistic venture capitalists and angel investors.
Read More: 5 Steps To Creating A Record-Breaking Crowdfunding Campaign
Is this a sign the relatively young model of crowdfunding investment is losing its youthful appeal? Is the bubble about to burst? And what does it mean for aspiring wellness entrepreneurs on the hunt for investment to launch their business?
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First published on 25 July 2018 by global wellness news site Welltodo.