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Is 1Fit the most capital—efficient startup in the world?

Startups raise $50 million to reach ARR of $10 million. 1Fit raised $1.7 million to reach ARR of $39.7 million. Maybe burning money is not a business model after all?

The startup world is a fascinating place: you can spend years attracting round after round, inflate the team, build financial models in which profitability is always "in 3 years", and eventually... It's like selling out for a song anyway. 1Fit went the other way.

🔴  A Series A startup:

- Raises $5M-$15M to achieve ARR of $3M-$10M

- Calculates LTV/CAC and understands that it is necessary to raise funds again

- Operating profit? I've never heard of it.

🔵  1Fit:

- $39.7 million ARR (3-10 times more than in a regular Series A)

- Only $1.7 million was raised (19-57 times more efficient)

- Positive cash flow with a profitable unit economy

🔴  A Series B startup:

- Raises $20M-$50M to achieve ARR of $10M-$50M

- Still "focusing on growth" (he doesn't know how to stop burning)

- There are more vice presidents on the team's slides than there are actual revenue streams

🔵  1Fit:

- We have already reached the income level of Series B

- We have collected 1/20 part of what the B-series startups are doing

- The efficiency of using capital is 30-100 times higher

🔴  A Series C startup:

- Raises $50M-$150M to reach $50M-$150M ARR

- "Profitability is a long—term goal" (translation: "we hope investors will stop asking")

- If you mention unit economics in a meeting, you will be escorted out

🔵  1Fit:

- Scaling towards Series C with capital up to Series A

- ARR is projected to reach $50 million within a year.

- Still not burning money

  • 1Fit is growing as a C-series startup and spending as a pre-A-series startup.
  • 1Fit can raise $10 million tomorrow and will still be more effective than 99% of companies backed by venture funds.
  • 1Fit does not do "growth at any cost." They make profitable growth.
  • 1Fit is the most effective fitness startup in existence.

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