US fitness start-up taps peer-to-peer betting model to incentivize users

A US-based start-up gamifying fitness by allowing users to bet on a series of running challenges has secured $1.5m in seed funding.

Cadoo launched in 2018 as a standard running app, but in March 2020 unveiled a challenge model which allows users to place wagers on their specific fitness goals.

Examples of these can include running 10 miles in 10 days, or walking three miles in three days.

Bettors who are successful in completing the challenge gain their original stake back plus a pro-rata share of the losers’ stake.

The platform is also planning to add private challenges, allowing customers to host fitness challenges for groups ranging from family and friends through to companies.

The platform currently boasts around 7,000 customers betting on fitness challenges via US payments processed by PayPal.

The latest funding round of $1.5m was derived from Apollo VC and Dorm Room Fund.

Cadoo had previously secured $350,000 from an angel investment round from Cloud Money Ventures Angel Syndicate, Wintech Ventures and Pioneer.

Colm Hayden, Cadoo CEO, described the platform as the “DraftKings for your own fitness goals” when speaking to TechCrunch.

He continued: “Our audience consists of 25 to 50-year-old fitness fanatics who use Cadoo to stay committed to their monthly or weekly fitness goals. When people are serious about a goal they are trying to reach, they want intense motivation to back their ambitions.

“Financial incentives is an intense motivator, and 90% of users who sign up for Cadoo challenges reach their fitness goals. We are making Cadoo much bigger than just running goals, and in the future incentivizing almost any goal verifiable on the internet,” he added.

Apollo VC said: “Cadoo makes it easy to motivate users to stay active with financial incentives. We believe the motivation industry that Cadoo is pioneering will be an important digital money use-case.”