PROVIDENCE, R.I.--(EON: Enhanced Online News)--ShapeUp, the leading global provider of social networking and incentives-based employee wellness solutions, announced that it has raised $7.5 million in new funding. This financing round, comprised of $5 million of equity from venture capital firms Cue Ball Capital and Excel Venture Management and $2.5 million of debt from Silicon Valley Bank, will fund strategic investments in mobile technology and global capabilities to drive member engagement and expand platform accessibility.
“No one in the corporate wellness space has effectively harnessed the power of mobile technology, but that’s about to change”
“ShapeUp is a proven company with a stellar team and a product that continues to lead the next generation of corporate wellness offerings,” said Tony Tjan, chairman of the Board of Directors at ShapeUp and managing partner of Cue Ball Capital. “This investment underscores our belief that there is incredible opportunity ahead for this company in the rapidly growing social and mobile wellness space.”
Excel Venture Management managing director Juan Enriquez said, “Very few startup companies have been able to deploy globally across multiple languages and countries. It is a testament to ShapeUp’s management and product that they are ready to invest this new capital to further grow their Fortune 500 client base and remain global leaders in the wellness market.”
ShapeUp will use a significant portion of the investment to build upon its existing mobile capabilities and launch the industry's leading mobile app and device integration infrastructure. This focus will help fill a major market gap by organizing and connecting the hundreds of different wellness-related mobile apps and devices now being used by consumers into a single, engaging, and effective corporate wellness platform. The company is also integrating with smartphone technology including GPS, accelerometers, co-processors such as Apple’s new M7, and companion smart watches to empower employees to track their fitness, share their progress with others, and receive personalized feedback throughout their daily routine. ShapeUp projects that the majority of participants will access its platform primarily through mobile devices by 2015.
“No one in the corporate wellness space has effectively harnessed the power of mobile technology, but that’s about to change,” said Dr. Rajiv Kumar, founder and CEO of ShapeUp. “Adopting lessons from our research in the direct-to-consumer space, we’re going to bring mobile wellness innovation to our hundreds of enterprise customers and their employees.”
ShapeUp will also increase investment in its global wellness offering. The company currently leads the corporate wellness industry in global capabilities, serving the needs of multinational corporations by offering its platform in 23 languages, mastering the logistics of shipping fitness devices to any country, and providing 24/7 translated phone and email technical support to participants around the world. ShapeUp plans to further its offerings by adding global marketing expertise, regional health content, and enhanced localization tools.
“ShapeUp is in a growing space, hitting our stride at the right time with an incredible opportunity to be the best wellness company in the world,” said Ann Brady, chief financial officer of ShapeUp. “We are excited to put this capital to good use as we scale and build out our mobile functionality and global reach.”
ShapeUp, which offers a comprehensive software-as-a-service (SaaS) wellness platform to meet the needs of employers and health plans, had previously raised $9 million in funding since its inception. The company, an early pioneer of evidence-based social wellness programs, counts nearly ten percent of the Fortune 500 among its customers. ShapeUp reached profitability in 2013 and currently has 75 employees. The company expects to double its workforce and open satellite offices in Boston, New York, and San Francisco in the next 24 months.
ShapeUp is the leading global provider of clinically-proven, social networking and incentives-based employee wellness programs that help people exercise more, eat healthier, and improve their overall well-being. Founded in 2006 by two medical doctors, ShapeUp has pioneered an innovative approach to behavior change that leverages the power of social networking, gaming, and financial rewards to improve the health of large populations and reduce healthcare costs. ShapeUp’s social wellness platform covers over two million lives across 109 countries and is used by more than 250 employers and health plans. Learn more about ShapeUp at www.shapeup.com.
About Cue Ball Capital
Cue Ball Capital is a Boston-based venture and early growth firm focused on innovative companies with recurring revenue business models and differentiated intellectual property across sectors such as enterprise Internet, SaaS, and digital media. Cue Ball was founded by a team of proven business builders including the founders of the internet services firm ZEFER, the former CEO and senior leadership of Thomson Reuters, and the lead investors and former Chairman behind Chipotle and Redbox. In line with the firm’s emphasis on human capital, Cue Ball’s investor base (The Cue Ball Collective) is a brain trust of leading industry entrepreneurs, executives and thought-leaders. Cue Ball’s portfolio includes Livefyre, Longtail Video, Lex Machina, ScrollMotion, MiniLuxe, and Stylesight. More information can be found at www.cueball.com.
About Excel Venture Management
Excel Venture Management builds companies that apply transformative technologies to solve problems in healthcare and beyond. The Excel investment portfolio is balanced across healthcare IT and services, diagnostics, and medical devices, plus life science platforms that address adjacent markets including energy, chemicals, defense and agriculture. Excel’s investments include leading companies such as Tetraphase Pharmaceuticals (TTPH), Aileron Therapeutics, Cleveland Heart Lab, Synthetic Genomics, and IlluminOss. More information can be found at www.excelvm.com.
About Silicon Valley Bank
Silicon Valley Bank (Nasdaq: SIVB) is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and international banking services to its clients worldwide through 27 U.S. offices and six international operations. More information can be found at www.svb.com.