What Is Ergatta?
Similar to Peloton, a company that sells stationary bikes and software that customers can use at home, Ergatta specializes in workout equipment that can easily be used from home. Ultimately, the startup saves customers a trip to the gym. The main product made by this business is a rowing machine, which comes with proprietary digital content. This smart technology made and sold by Ergatta allows users to tailor workouts to their skills. Furthermore, the startup boasts rowing as an effective workout that “exercises you at twice the rate of spinning and doesn’t destroy the joints.”
Ergatta was founded in 2019 by entrepreneurs Alessandra Gotbaum and Tom Aulet. According to the company website, the idea for the business came from Aulet’s adulthood struggles of maintaining a healthy fitness routine. “When I looked at my everyday fitness options, they either hurt my knees, didn’t work for my schedule, or just bored me,” Aulet wrote, explaining why the founders built their company and product around efficiency, comfort, and fun. The startup describes the experience of using one of its rowing machines as a “game-inspired content experience.”
Money and Investors for the Rowing Equipment Company
Though the company launched its first product roughly a year ago, the startup has already tallied $35 million in capital, according to investment tracker platform Crunchbase. The startup raised an undisclosed amount of money in a pre-seed round in 2019 involving two different investors and then raised $5 million in a 2020 seed round led by Greycroft, a New York-based venture capital firm.
The $30 million raised in the Series A closed this month is by far the biggest sum the company has raised to date. The funding round for the business was led by Advance Venture Partners along with return investor Greycroft. The startup also gained interest from Fifth Wall, Gaingels, and Hans Tung.
The Future of the Company
Aulet said he considers this larger funding round evidence that the emerging category of connected fitness “is here to stay.” So far, market analysis certainly backs up his claim. The global home fitness equipment market is expected to reach $8.62 billion in value by 2023, up from $6.76 billion in 2019. Furthermore, a recent study from McKinsey suggested the shift in consumer habits — in favor of working out at home — won’t lift when the pandemic is over as 68% of people who worked out at home during the global pandemic plan to stick with it.
As for Ergatta, there seems to be positive momentum on the side of the business. The rowing equipment startup says it met a $35 million run rate within eight months of launching its rowing machine in March 2020. The business also began yielding more than $3 million a month, with the founder projecting future growth to be five times that number year-over-year.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.