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Ergatta’s CEO reveals how the connected-fitness startup generated $2.5 million in monthly revenues within a year of launching

Ergatta Ergatta found a gap in the market by targeting fitness-minded people who don’t like exercise classes. It conducted months of research…

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Ergatta

Ergatta

  • Ergatta found a gap in the market by targeting fitness-minded people who don’t like exercise classes.
  • It conducted months of research before launching the product, and raised $5 million in funding.
  • Sales have boomed during the pandemic, but its CEO says the at-home fitness trend is here to stay.
  • Visit the Business section of Insider for more stories.

Ergatta only launched sales in March 2020, but the home-fitness startup has already reached $2.5 million in monthly revenues, it says.

Business has been so good that the company has already sold out of its luxury rowers multiple times during the pandemic.

The waves of lockdowns and gym closures made 2020 the ideal time for Ergatta to launch sales, but the stay-at-home fitness trend is here to stay, Tom Aulet, the brand’s CEO and co-founder, told Insider.

Ergatta was founded back in 2018, long before anyone knew that a pandemic would shake up the fitness industry. Two of the founders were marketers, Aulet told Insider, and they were outsiders to the fitness industry. This could have been pivotal to its success, Aulet said.

Because of their backgrounds in marketing, from the start, they focused on understanding the influences and resources that people consult when purchasing fitness equipment. Because rowing machines are such a major investment – Ergatta’s model costs $2,200 – customers undertake a lot of research before deciding whether to buy one, Aulet explained.

As a result, Ergatta decided to focus on searchable channels that impact lower-funnel consideration, such as YouTube reviews, blog, and press coverage, rather than paid-for adverts, Aulet said.

“This is an expensive product, those people have never heard of it before, it’s going in your home, likely in your living room or bedroom,” he said. “You’re not going to buy it after seeing an Instagram ad.”

The company got $5 million in funding from two rounds. Its biggest backers are New York-based venture capital Greycroft, but it got pre-seed capital from angel investors including Mark Pincus, Scott Dorsey, and Rhode Island-based WaterRower, which it struck up a partnership with. WaterRower now manufactures Ergatta’s machines.

Ergatta is just one player in a booming business. The fitness-equipment industry was valued at $11.5 billion in 2019 and is expected to reach $15.2 billion by 2027.

Peloton, which makes bikes and treadmills, has largely dominated the connected-fitness space during the pandemic. It doesn’t yet make a rower, but other companies including Hydrow, CityRow, Nautilus, and NordicTrack all do.

Michael Farello, a managing partner at L Catterton, told Insider in July that rowing was “the fastest-growing modality in fitness.”

Ergatta found a gap in the market. Around half of people don’t enjoy fitness classes, its research found, and so the company decided to make a competitive, gamified alternative to target this currently under-served market. As well as pitting you against the machine for its goal-based plans and interval workouts, the rower while allows you to compete against other Ergatta users in simulated races.

Because of this, Ergatta’s customer base isn’t centered around a specific demographic. The product instead attracts a certain personality type, Aulet said. Most consumers tend to be competitive and introverted, and it skews male. Its users include a lot of engineers, teachers, doctors, fire-fighters, lawyers, and finance people, he said.

WaterRower produces Ergatta’s rowing machines in Rhode Island from sustainably harvested cherry wood. Aulet said the company is the only major connected fitness brand that manufactures in the US. This is a huge competitive advantage in the current environment, he said: Most other fitness companies make their hardware in China, and logistics have been under strain during the pandemic.

And, as well as performance, design is an important part of Ergatta’s rowers.

“It’s really easy to sell when a thing is beautiful,” Aulet said.

The machine can fit into the space of a barstool when not in use, Ergatta says, and can be easily wheeled to a new room. The rowers come with a five-year warranty – but they’re built to outlast this, the company says.

Ergatta

Ergatta

Customers who already own a WaterRower can pay to upgrade their existing rowing machine with Ergatta technology. For $550, Ergatta sells its hardware add-ons for WaterRower S4 owners to turn their machine into a connected-fitness device.

Though customers need the hardware to use Ergatta, the startup describes itself as a software company at its core. It sells its software through a subscription model where customers pay $29 each month. The company releases new software every one to two weeks, with the input of customer feedback, meaning that users’ experiences constantly improve and evolve.

And this approach seems to be working. Ergatta’s users work out on average 12 times a month, and 99.5% of users stick with Ergatta each month, Aulet told Insider.

The company could have sold more rowers it hadn’t occasionally sold out, he added.

Ergatta is scaling up production to meet rising demand and is building up its workforce, too. It directly employs 18 full-time employees at the moment, and it has seven open roles, too.

The home-fitness boom is here to stay, Aulet said.

Two-thirds of Americans prefer working out at home, and 59% don’t expect to go back to the gym after the pandemic, he said.

“If you can deliver substantially the same or better experience much more conveniently, that will always win out.”

  • Sales have boomed during the pandemic, but its CEO says the at-home fitness trend is here to stay.
  • Source: https://markets.businessinsider.com/news/stocks/ergatta-ceo-financial-revenues-earnings-connected-fitness-sport-rowing-machine-2021-2-1030131656

    ergatta's-ceo-reveals-how-the-connected-fitness-startup-generated-$2.5-million-in-monthly-revenues-within-a-year-of-launching

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    Blackstone’s betting $6 billion on the rental market – here’s why private-equity loves real estate right now

    Jonathan Gray, Blackstone president and chief operating officer Heidi Gutman/NBCUniversal via Getty Images Blackstone is all-in on rent resets…

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    Jonathan GrayJonathan Gray, Blackstone president and chief operating officer

    Heidi Gutman/NBCUniversal via Getty Images

    • Blackstone is all-in on rent resets and long-term property assets to combat potential inflation.
    • Private equity firms have trillions of dollars in cash to put to work on acquisitions.
    • Blackstone’s share price ticked over $100 for the first time this month.
    • See more stories on Insider’s business page.

    It’s been quite the month for Blackstone.

    The private-equity behemoth is part of a consortium of investors that bought Medline for about $34 billion, its share price ticked over $100 for the first time, and it’s doubling down on residential real estate with a $6 billion Home Partners of America buy.

    It’s a bet on scorching demand for housing continuing, and also a defensive move as inflation worries start to seep into investors’ minds. The average price of a home topped $350,000 for the first time inn May, according to the National Association of Realtors, logging the largest-ever increase in prices since the NAR began tracking data.

    “Whether it’s apartments, storage facilities for warehouse distribution, or single-family homes, private-equity is getting into this as an inflation hedge,” Nicholas Tsafos, a partner with accounting firm EisnerAmper, told Insider.

    Home Partners, which owns more than 17,000 homes in the US, rents out these properties, but tenants have an opportunity to someday buy the home.

    In the single-family rental arena, private-equity firms can hike rents, while also holding onto profitable, tangible assets.

    “Because interest rates are low, and with the potential for a pick-up in inflation, private-equity also feels the need to be long on hard assets,” Tsafos said. “In real estate, you buy it today and then flip it for a higher price.”

    Jon Gray, Blackstone’s president and COO, alluded to it during the firm’s earnings call in April when he said multi-family apartments that come with the ability to reset rents were key for Blackstone.

    The firm bought many houses at remarkable discounts after the housing market crashed in 2007. It accumulated a number of single-family homes through a former portfolio company Invitation Homes. Blackstone sold its final block of shares in the company in 2019.

    The private-equity shop also favors logistics spaces, such as warehousing, life sciences offices, and media and studio businesses with offices, according to a June 22 research note from UBS.

    In October, Blackstone made a handsome investment when it sold life sciences real-estate company BioMed Realty for $14.6 billion, after acquiring it for about $8 billion in January 2016.

    And it’s not just Blackstone. Fellow private-equity investor KKR is investing in My Community Homes, a platform that buys and manages single-family rental properties, according to Bloomberg.

    KKR will invest in My Community Homes through its real-estate and private-credit vehicles.

    A spokesperson for KKR was not immediately available to comment.

    The Carlyle Group said in May that it provided up to $300 million to Four Springs Capital Trust, a private REIT that acquires and manages single-tenant properties with long-term net leases.

    Four Springs will use the money to build its portfolio, which encompasses 122 properties across 29 states, Carlyle said in a press release.

    The move on real estate comes while private investment firms sit on more than $1 trillion in cash. Borrowing costs, too, remain subdued as the Fed keeps interest rates at all-time lows.

    Given the sheer amount of dry powder available, coupled with accommodative credit markets, private-equity is keen to conduct a surfeit of acquisitions, and isn’t shy about injecting large sums of equity into prospective investments.

    Medline, for example, is expected to raise roughly $17 billion from the debt markets, while the private investors are providing a similar amount in equity.

    “Big leveraged buyouts are back in vogue,” said Christopher Zook, chairman and CIO of alternative investment manager CAZ Investments. “Whether it’s KKR or Blackstone, they have large capital to put to work. So they’ve got to do a ton of deals.”

    Disclaimer: KKR holds a majority stake in Insider’s parent company, Axel Springer.

    It’s been quite the month for Blackstone.

    Source: https://markets.businessinsider.com/news/stocks/blackstone-home-partners-america-single-family-rental-real-estate-inflation-2021-6-1030556791

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    Trading the Fed, plus insights from a 99th-percentile fund manager

    Hello and welcome to Insider Investing. I'm Joe Ciolli, and I'm here to guide you through the current market and investing landscape. Here…

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    Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through the current market and investing landscape. Here’s what’s on the docket:

    If you aren’t yet a subscriber to Insider Investing, you can sign up here.

    Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at [email protected] or on Twitter @JoeCiolli.

    Fed-driven portfolio adjustments GettyImages 1228670990

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    The Federal Reserve left interest rates steady this past week while setting the stage for two hikes by year-end 2023. Traders, who took a wait-and-see approach before the Fed meeting, quickly sprung into action. Insider spoke with Wall Street and crypto investors to gauge how to position for the hawkish shift.

    Read the full story here:

    The Fed has left rates steady while signaling 2 potential hikes by the end of 2023. Here is what to do with your stocks, bonds, and digital assets, according to top Wall Street and crypto investors.99th-percentile insights and stock picks Dave Ellison

    Hennessy Funds

    Financial-sector stocks have outperformed the rest of the market over the last several months. Hennessy Funds’ Dave Ellison – who’s in the 99th percentile compared to peers over the past year – told Insider he expects their strong performance to continue. He shared 5 financial stocks to buy now in order to take advantage of the remaining upside.

    Read the full stories here:

    Dave Ellison has beaten 99% of his peers over the last year managing the Hennessy Small-Cap Financial Fund. He breaks down why he thinks financial stocks still have room to run – and shares 5 names to bet onSPAC shorts SPACs and hedge funds 2x1

    Brian Snyder/Reuters; Michael Loccisano/Getty Images; Samantha Lee/Insider

    Short interest in SPACs stood at $3.2 billion in mid-June, up from $2.7 billion. The uptick in SPAC shorts comes as the market works to recover from a weeks-long slowdown, and one ETF manager expects recently “de-SPACed” companies to see short activity surge soon. Exclusive data shows the 20 most-shorted blank-check companies right now.

    Read the full stories here:

    Bets against SPACs are revving back up as the market attempts a comeback. Here are the 20 most-shorted blank-check companies now.YOU’RE INVITED: A Millennial Guide to Home Ownership

    Join us and learn how to navigate the complicated process of buying a home in today’s hot market on Tuesday, June 22 at 12 p.m. ET – during a free, hour-long virtual event presented by Fidelity.

    Register here.

    Stock pick central

    Seeking experts who are willing to name names? Look no further:

    Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at [email protected] or on Twitter @JoeCiolli.

    Source: https://markets.businessinsider.com/news/stocks/trading-fed-99th-percentile-picks-spac-short-selling-insider-investing-2021-6-1030537490

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    Artificial Organs Market | $ 10.90 billion growth expected during5 | Technavio

    NEW YORK, June 18, 2021 /PRNewswire/ — The artificial organs market is expected to grow by USD 10.90 billion during 2021-2025, according to Techn…

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    NEW YORK, June 18, 2021 /PRNewswire/ — The artificial organs market is expected to grow by USD 10.90 billion during 2021-2025, according to Technavio. The report offers a detailed analysis of the impact of COVID-19 pandemic on the artificial organs market in optimistic, probable, and pessimistic forecast scenarios.

    Technavio has announced its latest market research report titled Artificial Organs Market by Product and Geography - Forecast and Analysis 2021-2025

    Understand the in-depth market insights with value chain analysis and validation techniques:
    Download FREE Sample Report

    With the continuing spread of the novel coronavirus pandemic, organizations across the globe are gradually flattening their recessionary curve by leveraging technology. Many businesses will go through response, recovery, and renew phases. Building business resilience and enabling agility will aid organizations to move forward in their journey out of the COVID-19 crisis towards the Next Normal.

    The artificial organs market will witness a positive impact during the forecast period owing to the widespread growth of the COVID-19 pandemic. As per Technavio’s pandemic-focused market research, market growth is likely to increase in 2021 as compared to 2020.

    This post-pandemic business planning research will aid clients to:

    • Adjust their strategic planning to move ahead once business stability kicks in.
    • Build Resilience by making effective resource and investment choices for individual business units, products, and service lines.
    • Conceptualize scenario-based planning to mitigate future crisis situations.

    Key Considerations for Market Forecast:

    • Impact of lockdowns, supply chain disruptions, demand destruction, and change in customer behavior
    • Optimistic, probable, and pessimistic scenarios for all markets as the impact of pandemic unfolds
    • Pre- as well as post-COVID-19 market estimates
    • Quarterly impact analysis and updates on market estimates

    Major Three Artificial Organs Market Participants:

    Abbott Laboratories
    Abbott Laboratories offers ASSURITY MRI PACEMAKER. Its size and shape allow surgeons to make small incisions during the implantation procedure. This pacemaker requires a small pocket under the skin of the chest during implantation.

    Asahi Kasei Corp.
    Asahi Kasei Corp. offers REXEED. It is a hemodialyzer for effective removal of toxins and low molecular weight proteins.

    B. Braun Melsungen AG
    B. Braun Melsungen AG offers Diacap Pro. It is a hemodialyzer that removes wastes and excess fluid from the blood.

    If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Get report snapshot here to get detailed market share analysis of market participants during COVID-19 lockdown:
    https://www.technavio.com/report/artificial-organs-market-industry-analysis

    Artificial Organs Market 2021-2025: Segmentation

    Artificial organs market is segmented as below:

    • Product
      • Artificial Heart
      • Artificial Kidney
      • Cochlear Implants
      • Artificial Pancreas
    • Geography
      • North America
      • Europe
      • Asia
      • ROW

    The artificial organs market is driven by the increasing prevalence of chronic disorders. In addition, the growing demand for pacemakers and dialyzers is expected to trigger the artificial organs market toward witnessing a CAGR of almost 9% during the forecast period.

    Know more information on factors assisting the artificial organs market growth during the next five years, Request Free Sample Report @
    https://www.technavio.com/talk-to-us?report=IRTNTR44011

    Related Report on Healthcare Include:

    Global Breast Reconstruction Market- The breast reconstruction market is segmented by product (breast implants and tissue expanders) and geography (North America, Europe, Asia, and ROW).
    Download FREE Sample Report

    Global Dental Infection Control Products Market- The dental infection control products market is segmented by product (consumables and equipment) and geography (North America, Europe, Asia, and ROW).
    Download FREE Sample Report

    Market Drivers

    Market Challenges

    Market Trends

    Vendor Landscape

    • Vendors covered
    • Vendor classification
    • Market positioning of vendors
    • Competitive scenario

    About Us
    Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

    Contact
    Technavio Research
    Jesse Maida
    Media & Marketing Executive
    US: +1 844 364 1100
    UK: +44 203 893 3200
    Email: [email protected]
    Website: www.technavio.com/
    Report Page: https://www.technavio.com/report/artificial-organs-market-industry-analysis

    Technavio (PRNewsfoto/Technavio)

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/artificial-organs-market—10-90-billion-growth-expected-during-2021-2025–technavio-301315548.html

    SOURCE Technavio

    Markets Insider and Business Insider Editorial Teams were not involved in the creation of this post.

    With the continuing spread of the novel coronavirus pandemic, organizations across the globe are gradually flattening their recessionary curve by leveraging technology. Many businesses will go through response, recovery, and renew phases. Building business resilience and enabling agility will aid organizations to move forward in their journey out of the COVID-19 crisis towards the Next Normal.

    Source: https://markets.businessinsider.com/news/stocks/artificial-organs-market-10-90-billion-growth-expected-during-2021-2025-technavio-1030536439

    artificial-organs-market-|-$-10.90-billion-growth-expected-during5-|-technavio

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