If There's ANYTHING The Metaverse Might Actually Be Good For... It's Exercise!
If There's ANYTHING The Metaverse Might Actually Be Good For... It's Exercise!
If There's ANYTHING The Metaverse Might Actually Be Good For... It's Exercise!
The Rules:
Every week I breakdown startup pitches with the added hook that you can invest whether you’re accredited or not (if you don't know what that means, click here).
I base my review on a 3-minute founder pitch and some light diligence.
My scoring system is not a validation of idea, or grading for likelihood of success. It just means, all things being equal at launch — this startup has these boxes checked.
What I look for:
Founder — ability to lead, sell into and influence a given market
Idea — is it inevitable or solving a BIG problem in a scaleable way
TAM — how big is the total addressable market
Traction — do they have meaningful early traction
Unfair Advantage — do they have a competitive edge
★★★☆☆
Company Overview
VirZOOM is bringing exercise to the metaverse 👉 Watch The Pitch 📺
Key People: Eric Janszen (serial entrepreneur and investor), Eric Malafeew (Guitar Hero, Rock Band, & Dance Central) and Jason Warbrug (20+ years of games industry experience)
Traction: VirZOOM has more than 250k installs, 50k+ this month alone. With $375k in revenue at 93% gross margin, VirZOOM needs only to focus on market share in a rapid growth space — with 44.8% CAGR, the Metaverse Market is poised to hit $596.47B by 2027. I could spew digital exercise stats but I don’t think anything I tell you about this will come as a surprise (it’s a top 5 growth market).
Terms & Takeaway
Invest in VirZOOM here 👉 Term Sheet
Security Type: Equity
Pre-Money Valuation: $24,300,000
Raised (as of publishing): $468,549
Minimum Investment: $500.00
Here's what I like: I 100% believe in the metaverse opportunity, but I separate it into a few categories; a) gamer kids that live vicariously through avatars b) digital nomads c) collectors and speculators (bored ape and realm investors) d) those looking for a break from reality. It’s the latter that interests me — working out in the metaverse after a day spent with humans sounds amazing. For that reason, I am a believer in the potential here. Additionally, I like that they are acquiring users at under $15 with a LTV near 10x. The bet becomes what % of users become obsessive.
Here's what I don't love: First, the metaverse multiple freaks me out — I totally get the hype, but with hype comes blindness. At $24M I’d like to see more revenue and less leap of faith. From a user perspective, the 4.6 rating is outstanding, but anyone with experience in health/fitness apps knows the winning recipe is super low CAC and a combo of consistent freemium conversion and absentee subscription revenue.
Who should invest and why: I remember riding virtual maps at the gym in 2000. Metaverse isn’t as new as it may seem. But, virtual reality has come a long way — in fact, Peloton probably has a bigger role in the adoption than many figure. There’s no question where things are going, so investing in VirZOOM might be a great entry point into the market with the added hook that its more fitness than anything.
As always, startup investing is super high-risk, anything can happen.
Invest in VirZOOM here 👉 Term Sheet
Questions, DM me 🤳 @kitun.
Disclaimer: It goes without saying, but this information should not be constituted as financial advice, my investing opinions are my own and all diligence is the responsibility of each individual investor.