While we are still an early-stage company, the most likely pathway to exit is through an acquisition. M&A activity within digital health and connected fitness has increased, largely due to existing incumbents looking to acquire point solutions (niche, specific products) to service platforms (multiple use cases).
The digital health space saw $57.2 billion of funding, a 79% year-over-year increase in 2021 according to CB Insights. Rock Health shows that digital mental health start-ups raised about $5.1 billion last year.
We’re early trailblazers within the “X-to-earn” market (what we call “engage-to-earn).
FitFi, also known as Move-to-Earn, represents a culmination of a very physical experience (fitness) within the metaverse, by using NFTs and geo-location technology. Move-to-earn is a market economy in which participants earn from the value generated by a $100 billion fitness industry. Compass operates at the intersection of mental health, web3, and digital community.
Wellness has become more and more important to the average consumer: a 2021 survey by McKinsey found that 42% of consumers consider wellness a top priority. According to the consulting company, the global market for wellness is now worth around $1.5tn, and is projected to reach between $2.5tn and $4tn in value by 2030.
Once limited to sports equipment and clothing brands, the wellness sector has now expanded into a myriad of segments, with sometimes blurred lines and lots of overlap. Tech-based categories such as Fitness-as-a-Service (think Peloton), TeleHealth apps for mindfulness and mental health, and wearable health trackers have been on the rise in the past few years, boosted by the global pandemic.
Hampleton Partners, an M&A advisory firm specialized in technology companies, has recently published their 2022 Report on the state of HealthTech.
In the second half of 2021, the trailing 12-month median EV/S multiple was 5.6x up from a 3.6x the previous half-year and around 3x the year prior.