Salut Raises $1.25M to Revolutionize Virtual Fitness

This morning, Salut, a platform enabling fitness instructors to conduct virtual classes, revealed it has secured $1.25 million in a recent funding round. Charles Hudson, a partner at Precursor Ventures, spearheaded the investment.

Matthew DiPietro, Salut’s founder and a former employee of Twitch, shared with TechCrunch that the service initially launched in a limited capacity in mid-September, with a broader release occurring today.

DiPietro conceived the idea for Salut prior to the onset of the pandemic, as he explained in an interview, but the emergence of COVID-19 significantly amplified the need for such a service. The company swiftly developed an initial, no-code version of the platform in May to assess market interest, allowing the fledgling startup to confirm demand from both trainers and participants – a challenging feat, as establishing two-sided marketplaces often requires simultaneous supply and demand.

This testing phase provided the company with confidence regarding the existence of demand from both fitness professionals and individuals seeking exercise instruction, as well as validating their initial financial projections.

Now, with the new funding secured and the product officially available, Salut’s focus is on rapid expansion. The company currently boasts 55 registered trainers on its platform, a solid foundation for a seed-stage venture. Substantial growth will be necessary to generate sufficient revenue for a future Series A funding round.

However, Salut is not prioritizing immediate revenue generation, currently forgoing any commission on trainer earnings. In fact, according to an email sent to users this morning, the startup is distributing 100% of income generated by trainers after Apple’s fees, or 85% of the total revenue.

Users presently have the option to donate to or tip trainers hosting classes. DiPietro informed TechCrunch that subscription models are planned for implementation within the next quarter or two. The company also announced today that trainers can now permit replays of their classes, a feature frequently requested by users.

Those acquainted with Peloton will recognize the value of this feature; while only a small percentage of Peloton classes are live at any given time, the platform offers an extensive library of on-demand content. This also enables Peloton to offer specialized content, as even niche classes, like those featuring heavy metal music, can attract a dedicated following over time (a result that might not be achievable if all classes were only available live once).

DiPietro expressed optimism about creating income opportunities for trainers, particularly during a pandemic that has forced many gyms to close, leaving fitness professionals with limited or no income.

Early indications suggest users are willing to pay for these services, with initial users expressing a willingness to pay $5 or $10 for an hour of fitness training. Salut believes a significant number of trainers, particularly those who may not attract large audiences to live classes, can ultimately earn more through its platform than they could at a traditional gym.

Salut facilitates group video classes, allowing trainers to earn revenue from multiple participants simultaneously.

The newly raised funds are primarily allocated to engineering efforts, as the company has outlined an ambitious product development roadmap.

The startup also unveiled a collaboration with Fitness Mentors, a trainer certification organization, to introduce what the companies are calling “the industry’s first Virtual Group Fitness Instructor (V-GFI) course and certification.”

The rationale behind Salut’s support for this certification is clear; it will help users identify qualified trainers on the platform and potentially enhance the overall quality of classes offered.

It remains to be seen how effectively Salut can leverage its $1.25 million in funding.