Fitt Insider Issue 9 — The Big Business of Being Mindful
Fitt Insider is a curated look at the news and ideas redefining the fitness and wellness industries. It’s designed for entrepreneurs, executives, and investors interested in boutique fitness, natural foods, fitness tech, and emerging wellness trends.
Today’s Fitt Insider Briefing
Mindfulness & Mental Health
Conversations around mindfulness and mental health are surging — you may owe that to celebrities who have been speaking out and brands that are taking a stance. But 2018 hasn’t just been a year of talking, people and businesses are investing some serious time and money in their mental health and wellness.
And if you ask us, it’s really no surprise; according to a recent survey by Statista, 20% of American adults were diagnosed with depression in the last year and 17% were diagnosed with anxiety disorders. Of those affected, only 2.1% of adult females and 1.6% of adult males sought out prescription medication as their only action. It would seem that the negative stigmas aren’t as threatening as they used to be to those who need help, and in countless cases, people are instead looking to alternative wellness solutions and changing things up with their diet, exercise, and overall mindfulness.
Products & Experiences
We’ve been getting down with our mindfulness mantra for quite some time now and by the looks of it, we aren’t the only ones. The mindfulness industry is now valued at $1.1 billion dollars in the US and has come to life across a variety of mediums, from clean products to conscious consumption initiatives and from wellness experiences to holistic healing.
Let’s take a minute to unpack some of these trends.
In June, running and activewear company ASICS launched the Blackout Track: a custom-built 150-meter track in London that has no lights, no technology, no music, and no scenery. You may be asking...what’s the point?! The Blackout Track was created to push athletes to engage in a completely mindful workout. ASICS global CMO Paul Miles talked about the experiential track experience and larger campaign with Edelman UK saying, “Our promise is to bring our founder’s vision to life in the modern age — where negative distractions of mind can prevent us from reaching our potential and going the distance.” As they believe, a sound body fuels a sound mind.
For athletes running on the Blackout Track, they’re hoping to gain a mental edge that pushes them ahead of the competition. But it’s not just world-class athletes looking to dial in their mental health — even the city that never sleeps (Hello, NYC) is making strides towards becoming more mindful.
If you’re ever strolling down the streets of Midtown Manhattan and looking for a spot to decompress, check out Nap York. Nap York is a new wellness studio designed to improve all aspects of your mental and physical well-being. The space boasts a smoothie and coffee bar, sleep pods, moon chairs, yoga classes, and guided meditation. Feeling zen yet?
But boutique studios aren’t the only ones following this cultural movement, luxury gym chain Equinox launched a class called HeadStrong to promote mindfulness and extra sensory stimulation.
So, it looks like health will continue to encompass the mind and body. As found in JWTs “Well Economy” report, 79% of definitions of ‘health’ associate it with the physical condition while 75% associate with mental health. This presents a real opportunity for brands and businesses who are willing to invest in holistic health.
The Business Side
Let’s be clear — the business world is taking definitely note. Startups are popping up across the country. Venture capital funds—ones that only invest in companies that focus on health and mindfulness—are being created. It’s also worth mentioning the major enterprise companies, like Google, that are investing in mental health. These investments are leaving employees happier, healthier, and more productive (and, importantly, moving their bottom line).
From 2014 to 2017, the amount invested in mental and behavioral health startups rose by 167%. And there are no signs of slowing down in 2018, where over $146 million was invested in the first quarter alone.
Where is all this money coming from? Well, it’s coming from investors, venture capitalists and funds like entrepreneur Bo Shao’s Conscious Accelerator fund. According to his Medium.com blog post, “the fund...will invest in companies dedicated to reducing suffering in this world by using technology to further develop humanity’s consciousness.” When Shao refers to suffering, he’s not talking about wealth inequality or disease — he’s talking about mental suffering.
“Many people today still feel lonely, purposeless, fearful or angry… Mental health statistics are alarming.”
What’s equally as alarming (and pretty awesome) is the amount of startups fueling this revolution. In the past two years alone, Quartet, a New York-based startup, raised $40M Series C funding. The company looks to facilitate care between providers and mental health patients for better physical outcomes. Lyra Health, a California-based startup, has raised a $45M Series B funding. That startup aims to use technology to personalize the experience of seeking help for mental illnesses.
Let’s be honest — mindfulness and mental-health are no longer just driving a movement, they’re driving a multi-billion dollar industry. And you know we’re being mindful of the next big development.
News & Notes
ClassPass.
In the last year, ClassPass has retooled their business model, reshuffled management, and saw their valuation decline as part of a $70M Series C round. But now, with the announcement of a $85M funding round, it appears as though the company may have turned the corner. Along with the funding news came word of ClassPass’s expansion into Asia, starting in Singapore.
Despite criticism from studio partners and subscribers alike, ClassPass is continuing to innovate. In March, ClassPass Live—a streaming workout service—launched. Then, in a move that follows the voice-led workouts trend, the company launched ClassPass Go — a free app offering hundreds of audio workouts.
Peloton.
Not to be outdone, Peloton has secured $550M in funding that values the company at $4.15bn. As I’ve previously stated, Peloton is an interactive cycling platform whose business model is based on digital content and a growing rider community in excess of a million devotees. With revenue expected to top $700M, the company has its sights set on a 2019 IPO — even though an acquisition by Amazon would be much more compelling.
Bulletproof.
Tapping Goop-like pseudoscience, Dave Asprey’s Bulletproof 360 has raised a $40M Series C led by CAVU Venture Partners. Riding a wave of momentum generated by the success of the company’s flagship ready-to-drink butter coffee—that has been flying off the shelves at Whole Foods—Bulletproof is planning to grow their product portfolio and media presence, including in podcasts, blogs, and books written by Asprey.
*Thanks to Olivia O'Sullivan for contributing to this week's briefing.*
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About Fitt.
Fitt is a media and technology platform connecting people to healthy businesses and activities anywhere. With a growing network of local contributors, city-specific guides, and a location-based app, our company is building an all-in-one platform for living a healthy lifestyle.
Our Mission.
Fitt makes a healthy, active lifestyle more accessible and sustainable by connecting people to health-minded business, events, and activities wherever they are.
More From Fitt.
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Fitt Labs. Fitt Labs is a full-service creative shop built on top of a media platform at scale. We create and distribute innovative marketing programs for brands who want to reach and engage health-minded millennials.
Fitt Insider. Fitt Insider is a curated look at the news and ideas redefining the fitness and wellness industries. It’s designed for entrepreneurs, executives, and investors interested in boutique fitness, natural foods, fitness tech, and emerging wellness trends.