Therabody: Adding 100+ Celebrity Investors

Every morning I write an email discussing the business and money behind sports. If you would like to receive it directly in your inbox, subscribe now.

Friends,

Therabody, a leading technology-enabled health & wellness company famous for their percussion massage gun “Theragun,” announced yesterday that they are taking outside capital for the first time since the company was founded in 2016.

The interesting part?

The investor list is insane, including more than 100 of the most influential names in sports, entertainment, and business.

Here are a few of the investors:

• Jay-Z

• Aaron Rodgers

• Kevin Durant

• Russell Wilson & Ciara

• DeAndre Hopkins

• James Harden

• Rihanna

• Justin Timberlake

• Will Compton

• Maria Sharapova

• Marcus Stroman

• Cody Bellinger

• Bobby Wagner

• Sam Darnold

• DK Metcalf

You can find the remaining investors here.

A valuation wasn’t given, but Therabody says they’ve tripled their revenue year-over-year, have more than 250 active/pending patents, and have increased their retail distribution from 40 stores in 2019 to ~10,000 locations globally today.

For those that don’t already know, I believe human performance optimization is set to become one of the most important industries over the next decade. Consumer demand is strong, technology is increasing, and amateur athletes have more access than ever before.

The result?

Companies like Therabody, Hyperice, and WHOOP can’t ship products fast enough.

We are continuously shifting toward a society willing to push the boundaries on performance and recovery through innovation. Technology has become deeply ingrained in our daily lives, and the emotional and social connection inherently derived from social media has built a fan/athlete relationship like never before.

The movement has already started, but with technology & competition increasing access, every amateur athlete in the world will eventually have the opportunity to train, rest, and recover like a professional.

As for the approach, most of these companies are following the same playbook.

1. Integrate with professional athletes & sports leagues/teams

2. Expand through retail consumer penetration & adoption

Here’s what I mean…

Hyperice, a global recovery and movement technology company specializing in vibration, percussion, and thermal technology, has signed exclusive agreements with multiple professional sports leagues, including the NFL and NBA.

Similarly, Therabody has a team-specific approach, signing multi-year agreements with popular football clubs Real Madrid, Manchester City, and Paris-Saint Germain.

For professional teams & leagues, it makes sense. They have multi-billion-dollar broadcast deals with ratings that are contingent on the biggest stars in sports participating. Recovery partnerships provide monetary value and help protect that investment.

For Hyperice & Therabody, it’s a no-brainer. By linking up with professional leagues & teams, they get valuable exposure as the “premier” brand that professionals use. Not to mention the athletes themselves provide valuable distribution through their large audiences.

As for step two, companies like Hyperice & Therabody will maximize the long-term value of these partnerships through retail distribution. They have proven products that are inherently trusted due to the connection to professional athletes and teams. That’s valuable. Now, they’ll reduce access and expand to the masses through eCommerce channels and tens-of-thousands of retail stores worldwide.

In my opinion, the true financial upside sits within the ability to interconnect digital fitness products, quantitative health and wellness tracking applications, and recovery technology like percussion massage guns and dynamic air compression boots.

What do I mean?

Think Peloton, Whoop, and Hyperice combined.

The retail fitness infrastructure of the future will integrate these products through one combined offering.

In the end, as technological innovation continues to occur and humans demand a more scientific and analytical approach to their overall health and wellness, the growing trend of human performance optimization will only accelerate.

Consumers are more aware, educated, and demanding with their health than ever before. Combine that with exceptional products, distribution, and scale, and you have a dangerous combination.

Have a great day, and we’ll talk tomorrow.

If you enjoyed today’s email, subscribe now to receive future emails directly in your inbox.

This Newsletter Is Brought To You By…

Looking for an incredible, healthy beer to kickstart your year?

Try Athletic Brewing.

They are revolutionizing healthy, better-for-you beer. Their beers are all non-alcoholic, but you don't have to compromise on taste - they've won awards versus full strength competition and start at only 50 calories.

Drink more and be healthier in 2021!

Check them out at Athleticbrewing.com and use JOE25 for 25% off your first order!