KrowdFit gets $2.45M for its service that reward healthy behavior


KrowdFit has raised $2.45 million in a seed round led by SurveyMonkey founder Ryan Finley.

Started in 2010, the company has developed a service that incentivizes users to exercise regularly, eat better, and win cash as a result. Using a mobile app, KrowdFit engages users by having them log their exercise, step, eating, and sleep activity throughout the day with a wearable tracker from Fitbit or Jawbone. Each time an activity is recorded, users earn entries to cash giveaways which are funded via monthly membership fees ($12.99), in addition to $10,000 added by KrowdFit for every 5,000 new members.

“The bigger the Krowd, the bigger the rewards pool and the more people get paid each week for consistently living a healthy, active lifestyle,” the company’s CEO Jim Miller told GeekWire.

KrowdFit makes most of its money from corporate clients that pay $720 per year to have access to the platform. In addition, the service is also available to individuals.

“We had a number of people letting us know that they left their previous company but still wanted to participate as an individual,” Miller noted.

For those who don’t own a wearable device, KrowdFit can provide a Fitbit or Jawbone wristband for an additional $4 to $7 per month — after 12 months, they own the device and drop back down to the normal $12.99 per month fee.

Miller added that he expects the company to break-even on its balance sheet this year.