Offering an alternative to digital and performance-based fitness, recreational sports are trending up.
It’s no secret Americans are alarmingly unfit.
While the pandemic-era home exercise boom made headlines, it hasn’t made much headway toward curbing those numbers.
- The global participatory sports sector is expected to surpass $435B by 2026.
- Encompassing sports and active recreation, the physical activity economy is worth more than $820B worldwide.
Now, as the pendulum swings from digital workouts to real-life communities, there’s an opportunity to reimagine movement for the masses.
Beyond the typical fitness regimen, sports are an excellent way to stay active.
But, few adults—even those who participated as children—continue playing sports as they age.
- According to a Harvard survey, 73% of adults played sports in their youth, but only 25% still play.
- Participation declines sharply after 25 years old; just 20% of adults 50 and over remain engaged.
While respondents cited lack of time and accessibility as barriers to play, the vast majority acknowledge the benefits for overall well-being.
Mulling the results, Harvard professor and the report’s lead author Robert Blendon said more can be done to leverage the power of sports for health — especially among adults.
The latest: By removing friction and increasing access, tech-enabled sports startups like Street FC, Crosscourt, and Break the Love want to do exactly that.
Soccer. Aiming to build the planet’s biggest football club, Street FC hosts flashmob-like pick-up soccer games.
Bringing a street basketball format to soccer, the company organizes 5v5 games on underutilized concrete spaces. Then, gamifying participation beyond the court, player profiles track streaks and peer ratings while members connect on Discord.
With $2M in new funding, Street FC is scaling from five to 20 cities by 2023.
Basketball. Applying the SoulCycle experience to team sports, Crosscourt is a basketball-focused lifestyle club. (Street FC also cites SoulCycle as inspiration.)
A highly curated tech-enabled platform, the company hosts pick-up games at its LA gym — complete with locker rooms, jerseys, and officials. Expanding its footprint, club format, and sports offering, Crosscourt is eyeing expansion.
A different approach, Swish House offers basketball-based fitness classes and pick-up games at locations in NYC, Chicago, and Michigan.
Tennis. After closing a $2.5M investment in January, Break the Love is making tennis more approachable.
Coordinating logistics like venue, instruction, and organized games, the startup brings a more inclusive, Outdoor Voices-like vibe to a sport often labeled elitist. Targeting racket sports more broadly, Break the Love recently partnered with Equinox for access to tennis and pickleball courts.
Elsewhere, Madrid-based Playtomic has raised more than $75M to make booking tennis, padel, or pickleball courts easier. Meanwhile, Universal Tennis taps player ratings, local clubs, and competitive events to expand the sport.
The framework. Unlike many digital communities that gained traction over the last few years, these emerging platforms use the internet to unite people offline.
In many ways, this effort mirrors trends in hiking and camping, where companies like AllTrails and Hipcamp use software to enable adventure — while also unlocking consumer demand and attracting investor interest.
Borrowing from boutique fitness studios, they’re creating bookable “classes,” sleek branding, and highly engaged communities.
Worth noting, there are plenty of apps for discovering games or booking courts. But these startups go a step further. Using tech to build a fully integrated sports league, including a locker room-like community that spans digital x IRL, the network effects create an impactful flywheel.
Perhaps most importantly, by eliminating pain points like securing courts, purchasing equipment, and organizing a team, the entire experience is seamless — athletes just show up and play.
Bigger Than Sports
Health benefits aside, sports are a unifying force.
Combating social isolation and polarization, bringing people of diverse backgrounds together to play could help restore a shared human experience that’s severely lacking.
Similarly, whether it’s a local run or cycling group, shooting hoops at the YMCA, or meetups like GORUCK, November Project, or F3 Nation, sweating and socializing enhance our collective well-being.
Punchline: Lowering the bar to physical activity and appealing to a broader audience than the typical gym-goer, sports leagues and community-based workouts promote holistic wellness, active aging, and real connections.
Shoutout to friend of the newsletter Danny Shapiro for suggesting this topic.
🚀 Performance Fuel
Elite performance requires optimal nutrition.
On the Fitt Insider Podcast: The Feed founder Matt Johnson discusses building a performance-minded nutrition marketplace.
We also cover: the future of personalized nutrition and bridging the gap between pro athletes and weekend warriors.
Listen to today’s episode here
📈 Growth Mode
Orangetheory Fitness is bulking up.
How it’s going: Rising all last decade, before the pandemic, the HIIT franchise was in growth mode, hitting $1B in annual systemwide sales in 2018 and 2019.
After COVID lockdowns lifted, it got back to business. In 2021, OTF signed up 500K new members and opened its 1,500th studio this March, including a new NYC flagship.
Not slowing down, through H1 of this year, OTF cut the ribbon on franchises across North and South America, Europe, Asia Pacific, and the Middle East.
What’s working: Orangetheory is prioritizing experience over everything, beefing up advances in real-time data while pushing into workplace wellness.
- In March, it named DJ Steve Aoki as chief music officer, responsible for curating original setlists that amplify its heart rate-based workouts.
- In early August, it entered corporate wellness by joining Gympass’s global network.
- A week later, OTF debuted its Personalized MaxHR algorithm, analyzing users’ peak heart rate to deliver customized instruction.
Punchline: With its tech-driven model that delivers performance and personalization, Orangetheory wants to ride the boutique fitness recovery to new heights.
Withings is connecting the dots between healthcare and holistic well-being.
The latest: The French healthtech company expanded its ecosystem, bundling a smart scale and subscription coaching service.
What it is: The Body Comp connected scale measures proportions of muscle, fat, and bone mass, water %, and weight — as well as more clinical metrics like visceral fat, cardiovascular health, and nerve health.
Paired with its new Health+ service, Withings will use personalized data from the scale to prescribe habit-forming fitness and nutrition modules that spur lifestyle changes.
Behind the scenes: Health+ builds on the company’s acquisition of digital fitness platform 8fit, enabling activity, sleep, stress management, and nutrition recommendations. The service also creates weekly reports users can share with doctors.
Notably, it’s only available through purchase of the scale (for now). Enhancing its ecosystem while navigating regulatory hoops that Big Tech has skirted, Withings hopes to appease both fitness seekers and doctors alike.
Takeaway: Linking next-gen hardware with a monthly subscription, Withings hopes to translate personalized data into better health outcomes and scalable revenue.
📰 News & Notes
- Tom Brady redesigns gym class.
- Gatorade unveils Fast Twitch energy drink.
- Fitt Jobs: Take your next step in health & fitness.
- Zwift reveals experience-centered product roadmap.
- VR and psychedelics have a similar effect on your brain.
- CVS acquires home health company Signify Health for $8B.
- lululemon posts $1.87B in Q2 revenue, raises full-year outlook.
- Exec Q&A: Freshly’s Tom Futch on the launch of B2B extension FreshlyWell.
💰 Money Moves
- Dutch B2B digital fitness platform Funxtion raised €5.8M ($5.8M) in a Series A round.
- Science in Sport, a UK-based sports nutrition company, secured £3.5M ($4M) to scale production.
- Orangetheory Fitness franchisee Honors Holdings acquired four studios across Tennessee and Mississippi.
- Planted, a Swiss alt-meat startup, secured CHF 70M ($71.2M) in a Series B round led by L Catterton.
- Neutral Foods, producer of climate-friendly, organic milk, raised $12M from Bill Gates’ Breakthrough Energy Ventures, Mark Cuban, LeBron James, and others.
- Israeli foodtech firm Mermade Foods, maker of cell-cultivated scallops, secured $3.3M in a seed round.
- Pharmacy giant Walgreens Boots Alliance acquired a majority stake in home health company CareCentrix for $330M.
- London-based digital fertility clinic Apricity grabbed €17M ($16.9M) in a Series B round led by MTIP.
- PsycApps, a UK-based creator of gamified mental health therapeutics, landed £1.5M ($1.7M) in a seed round led by Morningside Ventures.
More from Fitt Insider: The New Brain Game
- Digital therapeutic company Theranica, creators of a wearable that treats chronic migraines, landed $45M in a Series C round.
More from Fitt Insider: Next-Gen Health Wearables
- Greek yogurt maker Chobani withdrew its IPO proposal.
Today’s newsletter was brought to you by Anthony Vennare, Joe Vennare, and Ryan Deer.