Why we invested in obé, a smart fitness platform

We have been considering investing in a digital fitness company for quite some time. While we have met many impressive founders, we wanted to make sure to invest in a company that meets a real need in the marketplace, and that has the ability to thrive in the post COVID-19 world. 

When analyzing a company in the digital fitness market, we often compare it to brick-and-mortar companies in order to identify its niche. We have found that many digital-only fitness apps are not clearly filling a proven need. Too often, we see start-ups that lack any real differentiation. 

But obé fitness clearly fills a need, and differentiates itself. That’s why we participated in a $15 million Series A funding round, led by CAVU Venture Partners. We think obé is rewriting the rules when it comes to fitness and entertainment, and it has the potential to resonate with consumers who have not been attracted to solutions offered by other market leaders, such as Peloton and Mirror.

By producing 22 live classes daily, obé targets people who want more than just a workout. They want an experience. The company offers a social component, challenges users to commit to a specific time a day, and provides encouragement from trainers through shoutouts. The obé platform enables the unique aspects of a live class in a physical studio to come to life online via a neon, pastel-illuminated set inspired by light artists James Turrell and Dan Flavin. The set includes an unlimited number of color combinations that change throughout each workout.

The company’s classes integrate fitness with entertainment in an engaging ecosystem that combines technology with live classes led by motivational instructors. And obé promises to “put the fun back into fitness” by creating a community around online classes led by certified instructors who provide guidance, motivation and live feedback. “Entertrainment” is a phrase obé coined to describe its unique approach to fitness training. The instructors are highly engaging and their personal relationships with participants is part of this platform’s secret sauce. Instructors are powerful influencers as well as entertainers and personal coaches. 

It is not a coincidence that obé chose to blend fitness with entertainment. Its co-founders, Mark Mullett and Ashley Mills, have experience working with billion-dollar entertainment brands and A-list talent. The two former talent management executives worked together at CAA. They have put together a programming and technical team that has proven itself up to the task of keeping the site’s pipeline filled with original live programming.

The company is also using partnerships as part of its growth strategy. Partnerships with major companies – such as HBO Max, Disney, and CBS – helps to increase customer awareness and drive new subscriptions. Of course, we also like the fact that obé is offering a fitness solution that has a natural synergy with consumer devices, like smart televisions.

There is plenty of competition in the smart fitness sector, but obé has demonstrated the ability to meet a real need in a unique, scalable and differentiated way. As the company evolves, we think it will be a market leader when it comes to digital fitness.

Jonathan Machado is a Senior Investment Director for Samsung Next, and collaborated with fellow investors, Brandon Hoffman and Antonio Key.

If you’re a founder, we’d like to meet you.