Start-Up Enables Customers to Wager on Personal Fitness Challenges
An American start-up is looking to gamify the fitness and leisure sector. Cadoo allows customers to wager on themselves to complete fitness challenges. Punters who win their challenge receive their stake back and a share of the losers bets.
A US-based gambling start-up hopes to monetise the fitness industry by allowing customers to bet on a series of running challenges. The company has already secured $1.5m in seed funding.
Cadoo started life as a standard app to track a users workout in 2018. In March this year, the company introduced a challenge model which enabled customers to place wagers on reaching specific fitness goals.
Examples of these goals include running ten miles in ten days or walking five miles in five days, making the goals more attainable, even for those who have lower levels of fitness.
Those who back themselves and are successful in their challenge receive their original stake back plus a share of the loser’s stake.
Cadoo has revealed they have ambitious plans for the platform and plan to add extra features such as personal challenges in which two or more people could compete to finish a task quicker. So, for example, you could challenge a friend who can run a mile quicker; the winner would take the majority of the pot.
Other ideas include allowing customers to host fitness challenges for groups which could include family and friends. The company also sees potential in their platform to have corporate competitions, which could be used in team-building events.
Currently, the platform has about 7,000 users who bet on challenges, who use PayPal to place their bets on the result.
Recently, Cadoo has raised $1.5m from investors, including Apollo VC and the Dorm Room Fund. Apollo VC is an investment firm in California, and Dorm Room Fund specialise in raising money for student ideas. Since its inception, the Dorm Room Fund has raised over $3bn in funding.
The first round of funding had previously raised $350,000 from angel investors, including Cloud Money Ventures Angel Syndicate, Wintech Ventures and Pioneer.
Cadoo CEO Colm Hayden described the platform as the “DraftKings for your own fitness goals.” And said: “Our audience consists of 25 to 50-year-old fitness fanatics who use Cadoo to stay committed to their monthly or weekly fitness goals. When people are serious about a goal they are trying to reach, they want intense motivation to back their ambitions.
“Financial incentives is an intense motivator, and 90% of users who sign up for Cadoo challenges reach their fitness goals. We are making Cadoo much bigger than just running goals, and in the future incentivising almost any goal verifiable on the internet,”
Apollo VC, who was among the second round of investors, said of the product: “Cadoo makes it easy to motivate users to stay active with financial incentives. We believe the motivation industry that Cadoo is pioneering will be an important digital money use-case.”