The Tampa-based Peerfit, a digital wellness company that encourages people to exercise, has raised $2.3 million capital in its latest round of funding. Tampa Bay Lightning NHL team owner Jeff Vinik and Founder of Outback Steakhouse Chris Sullivan were among the investors, which included some from the healthcare and digital health sectors.
“The biggest thing we’re doing is opening up some major cities and areas of the country that we hadn’t touched before,” says Peerfit President Scott Peeples.
Peerfit has more than 30,000 in its network spanning more than 30 cities. It recently expanded into New York, Los Angeles, Atlanta, Portland OR and Charlotte NC.
A digital platform that enables insurance carriers, brokers and employers to offer boutique fitness classes to clients and employees, Peerfit surpassed its initial target of $1.5 million for the bridge round of funding.
“As we got close to our original target of 1.5, we extended the offering. That’s where we ended up having some new people come in and join in,” Peeples says.
The bridge round was “a way for us to raise some capital more quickly,” he adds.
Long-time technology investor Lee Arnold, Colliers International Florida Executive Chairman, led the round and was joined by investors from Florida Funders’ online investing platform and PAR/ARK Applications.
Peerfit has raised nearly $5 million since 2011, some $1.5 million last summer.
Through Peerfit, companies can offer fitness credits that its clients or customers can use at a variety of fitness centers.
CEO Ed Buckley came up with the idea for a fitness company when he was studying group fitness at the University of Florida. He pitched it to Peeples, another student, in 2010.
Among the industry powerweights that invested in the round were representatives of the New York City-based Frenkel Benefits, a large independent employee benefit brokerage and benefit administration firm. They were President Craig Hasday and Executive VP Adam Okun. Rich Gallun, Co-founder of the Chicago-based bswift, acquired by Aetna in 2014, also participated in the round, along with digital health innovator Joseph Hodges, President of Tampa-based INETICO and Care Valet.
Bswift is a leading provider of employee health benefits services.
Peerfit has added industry veterans Todd Slawter and Adam Lowe to its leadership team. Slawter, the Chief Growth Officer, will develop the sales team while Lowe, the Chief Technology Officer, will build infrastructure to support national expansion efforts.
It expects to double the size of its development team, including coders and programmers, and its sales team, including those working on studio sales and enterprise health teams, by the end of year. That should boost the staff from 30 to 40.
Peerfit also is partnering with MINDBODY, which provides cloud-based business management software to the wellness services industry. The partnership makes it easier for fitness studios to find corporate wellness programs in their area, while expanding the network of providers for employers.
Peeples says the industry is realizing there is a demand for a modern fitness product. “Our single biggest goal with this is to be the industry standard,” he says. “We’re looking to raise series B in the fall.”
You can read our previous article about Peerfit here.