Cadoo, a US startup that turns fitness into a betting opportunity, has raised $ 1.5 million from Sam & Max Altman, using the opportunity to win (or lose) cold hard money to motivate people to get off the couch. Apollo VC and Dorm Room Fund for students.
The app itself has been around since 2018, but in March 2020 it launched a “challenge model” to allow users to bet money on a challenge related to a specific fitness goal – 10 miles in 10 days or three miles in three miles. days.
Participants who achieve the challenge goal will regain their share and get a proportionate share of the losers ’participation fees.
Cadoo’s challenges (“from daily steps to marathon training”) meet different physical levels, with about 50 public challenges a week organized.
Private challenges are also being added this month. Users can organize and set up their own challenges / challenges for family / friends and larger groups, such as companies, clubs or schools.
Checks challenging activity application through activity tracker and fitness app API data. (Luckily, that means Cadoo is smart enough to detect if someone has tied their Fitbit to their dog …)
The app has the support of a number of third-party fitness services, including Strava, Fitbit and Apple Health.
General Manager and Founder Colm Hayden describes the launch of “DraftKings for Your Fitness Goals”.
“Our audience is made up of fitness fanatics between the ages of 25-50 Kadooa be committed to monthly / weekly seasonal goals ” the same he told TechCrunch and added: “When they are serious about the goal they are trying to achieve, they want intense motivation to support their intentions.”
He said it has attracted about 7,000 users who love betting so far.
Cadoo’s business model is based on taking a share of challenging losers before distributing the share of the entry fee to the challengers. This potentially allows the business to implement more difficult challenges than users complete.
But, of course, it is up to the users to choose which challenge to enter and thus commit to the money earned.
It also says that 90% of users who sign up for the Cadoo challenge successfully complete it.
Hayden says he has plans for the future to expand his money-making potential through supplyfitness products for the winners – and making a margin for them products. And also by expanding to other types of verification goals, not just running / walking.
“We are working to build a motivational platform for anyone to achieve their goals,” he says. “Financial incentives are highly motivating, and 90% of users who sign up for the Cadoo challenge achieve their goals in a timely manner. We are doing much more than setting Cadoo goals and pushing for almost any goal that is verified on the Internet in the future.”
While the app is based in the US, it pays for PayPal and payments Hayden says he is capable of accepting international participation, at least PayPal is available everywhere.
Commenting on the growth of the seed in a statement, the Altman brothers of the Apollo VC added: “Cadoo makes it easier for users to be motivated with financial incentives. We believe that Cadoo’s pioneering motivation industry will be an important case for the digital use of money. “
Before the seed round begins, Cadoo says it has gone up Through $ 350,000 a round angel Tim Parsa’s Cloud Money Ventures Angel Syndicate, Wintech Ventures and Daniel Gross’s Pioneers.
The gamification of health is, of course, not new. Given the quantification of data about fitness over the years and goal-based motivation, you can see steps, distances, calories burned, etc.
But putting money into the mix adds another layer of competition to motivate a type of person who can be helpful to stay fit or stay.
Cadoo isn’t even the only startup focused on fitness based on fitness, though – with a number of apps that pay users for losing weight or being active (though sometimes they can be directly paid for in digital currency in exchange for ‘rewards’). They are like others in space HealthyWage (We went back to the TC50 company in 2009!); Runtopia and StepBet, to name a few.