nex Raises $25M to Launch Active Arcade for Fitness

The Growing Problem of Physical Inactivity

A significant deficit in physical activity exists globally. While approximately three-quarters of adults acknowledge the importance of maintaining fitness for health, statistics reveal that one in four adults and an alarming 81% of adolescents do not engage in sufficient physical activity, as reported by the World Health Organization.

Even prior to the COVID-19 pandemic, less than 24% of children aged 6 to 17 years met the recommended 60 minutes of daily physical activity, according to data from the Centers for Disease Control and Prevention (CDC).

Pandemic's Impact and NEX's Solution

The shift to working and staying at home during the pandemic further intensified sedentary behaviors. Many individuals turned to passive forms of entertainment, such as watching films, streaming concerts, playing video games, and participating in virtual social events, all of which involve limited physical movement.

To address this widespread inactivity, NEX, a motion entertainment startup based in San Jose and Hong Kong, is pioneering new approaches to encourage active play for individuals of all ages. The company recently announced a $25 million Series B funding round coinciding with the launch of Active Arcade, its innovative mobile AI-powered interactive motion-tracking game.

Funding Details and Notable Investors

This funding round was spearheaded by Blue Pool Capital, with contributions from Samsung Ventures, SparkLabs, and Susquehanna. The investment also drew participation from prominent figures across sports, entertainment, and business.

These include Simu Liu (Shang-Chi), Albert Pujols (LA Dodgers), Thierry Henry (Arsenal Legend), Sabrina Ionescu (WNBA), as well as tech CEOs and founders from companies like YouTube, Dapper Labs, Alchemy, OpenDoor, WordPress, and executives from Zendesk, Uber, MasterClass, and Facebook.

Previous Funding Rounds

This latest investment follows a $8.5 million Series A round raised in 2019 from the NBA, Will Smith’s Dreamers Fund, and the Alibaba Entrepreneurship Fund. NEX had previously secured a $4 million seed round in 2018 from Charmides Capital, Harris Blitzer Sports & Entertainment Ventures, Mandra Capital, Steve Nash, Jeremy Lin, and Mark Cuban.

With the Series B round, NEX’s total funding to date reaches $40 million.

NEX's Founding and Mission

Founded in 2018 by David Lee, Philip Lam, Reggie Chan, and Tony Sung, NEX is driven by a mission to transform passive activities into active play. Their initial app, HomeCourt, has already gained traction in over 200 countries.

“The pandemic highlighted the growing issue of increasingly sedentary lifestyles worldwide,” stated David Lee, CEO and co-founder of NEX. “The joy of moving is fundamental to play. However, modern engagement standards demand that active play be as captivating as the best video games.”

Addressing Barriers to Physical Activity

Many individuals cite a lack of time as a barrier to physical activity. However, the core issue lies in the perception that leisure time should be spent on relaxing activities, while being active is often viewed as costly, time-consuming, and challenging.

Introducing Active Arcade

NEX’s Active Arcade, a collection of motion games, aims to encourage increased physical activity for both children and adults through engaging gameplay. It is designed to be universally accessible, functioning on any device equipped with a camera, including smartphones, tablets, laptops, and desktops.

Unlike competitors requiring expensive equipment like VR headsets or dedicated game consoles, NEX develops motion-based entertainment without the need for specialized hardware, monitors, or subscriptions.

Gameplay and Accessibility

Active Arcade utilizes body movement for gameplay, offering a diverse range of games with varying styles and difficulty levels to cater to players of all ages and fitness levels.

“Numerous companies have developed high-tech exercise programs within the motion-based entertainment sector, but many necessitate expensive new equipment or a significant learning curve,” explained Alex Wu, Vice President of Strategy, MarComm and Partnerships at NEX.

Proprietary Technology

NEX leverages a unique combination of AI, mobile technology, and vision technology to seamlessly blend the digital and physical worlds within a phone application, creating experiences like Active Arcade.

A limited test version of Active Arcade was launched by the company this summer, according to Lee.

HomeCourt and Industry Recognition

In 2018, NEX launched HomeCourt, its first AI-based basketball training app, which was showcased alongside Steve Nash at an Apple iPhone special event.

Endorsements and Support

“I am consistently seeking opportunities to invest in companies and products that align with my values. NEX’s commitment to encouraging increased physical activity in both children and adults, and transforming activity into play, is a mission I fully support,” stated Steve Nash, Brooklyn Nets Coach and 2x league MVP.

“We are proud to support the team at NEX as they advance their vision of transforming activity into play for people worldwide,” added Chip Austin, General Partner of Harris Blitzer Sports & Entertainment Ventures. “We are impressed by their leadership and innovative technology.”