[e1g]

They say each app install costs 30c, 10% of installs are active users, and in June 13% of active users were paying members - so the total customer acquisition cost was $23 for each customer paying $4/mo. They expect the percentage of paying people will double in the coming months, although no indication of why that would be the case or what the expected attrition rates are (fitness clientele is notoriously flaky). Unfortunately I couldn't find any Twitter chatter about 8fit so it's hard to gauge the sentiment of the initial 10k users.

Look like a smart investment into a strong founding team, rather than the product itself at this stage (not suggesting that the product cannot stand on it's own merit - only that the "team" slide was the most impressive part to me).

[clarky07]

Yeah I got the same feeling when I read it. The investment is clearly in the team and not the initial metrics.

I just launched a fitness app about a month ago and every single metric I have is better than theirs, yet I'm not overly pleased. It had more than double their download rate, more than double their conversion to subscription, and significantly more (though still not meaningful) revenue. The thought of raising 6 figures based on this seems bizarre and absurd. Perhaps if I wanted to (I don't really) we could raise some for it, but the thought hadn't even crossed my mind.

[bunkat]

Exactly. How do you raise a funding round after 1 month? Easy - just launch a successfully funded start-up first.

[wuliwong]

I'm not mad at them or anything but it is probably the #1 reason for them successfully raising money at this stage. Seems misleading not to have that front and center.

[clarky07]

Did the article mention if the investors were the same as earlier projects or not? Not that it really matters, the fact that they successfully built a 50m startup is likely enough to get 200k from a lot of people.