Invest in the future of human performance

Invest in the Future of Human Performance

World records are consistently broken whenever the Olympics take place.. While humans have not evolved in any significant way since the day the Olympics started in 1896, other factors have driven human performance forward.

Over the years, human performance has been shaped by advancements ranging from a better understanding of nutrition - led by pioneers in the field - to innovators like Steve Prefontaine, who have integrated better technologies into track athletes’ shoes. These advancements are critical to ensuring that each athlete can push boundaries further than ever before. As these improvements continue to evolve, Olympians are able to consistently outclass their predecessors.

One company driving the next wave of human performance is WHOOP. WHOOP creates a wearable product that typically goes around the wrist, though it can be placed in various locations on the body with the proper equipment. The wearable feeds back some of the most advanced tracking information on the market today and is worn by a huge swath of professional athletes, biohackers, and the growing fitness-conscious general public.

Traction

WHOOP has built significant momentum since its inception in 2012. Early adoption by professional athletes like LeBron James and Michael Phelps helped cement WHOOP's reputation as a high-performance brand. Beyond its market and consumer success, WHOOP has also emphasized scientific validation of its product, making it a trusted tool in professional and research settings.

With $405 million in funding and a $3.6 billion valuation, WHOOP is backed by prominent investors, including SoftBank, IVP, and celebrity athletes like Kevin Durant and Rory McIlroy. The company has used this funding to expand product development, grow its customer base, and enhance its enterprise offerings.

Partnerships have played a key role in WHOOP’s success:

• Cleveland Clinic Collaboration: During the pandemic, WHOOP partnered with the Cleveland Clinic to study respiratory rate changes in hundreds of WHOOP users who tested positive for COVID-19. Findings revealed that WHOOP devices could detect early physiological changes related to illness, demonstrating their potential for health monitoring beyond fitness. This collaboration established WHOOP’s credibility in the healthcare sector and opened doors for further medical research opportunities.

• Partnership with Stanford Neuroscientist Dr. Andrew Huberman: WHOOP formed a Scientific Advisory Council in 2022, including prominent figures such as Dr. Andrew Huberman, a Stanford professor and expert in human performance and neuroscience. This partnership further underscores WHOOP’s commitment to blending cutting-edge science with practical applications for recovery, sleep, and training optimization.

• WHOOP Unite: WHOOP Unite collaborates with corporate wellness programs to deliver scalable, data-driven solutions that improve employee health, productivity, and engagement. By providing insights into sleep, recovery, and stress management, WHOOP enables companies to create personalized wellness initiatives aimed at reducing burnout, enhancing performance, and fostering sustainable workforces. This platform positions WHOOP as a valuable tool for businesses seeking to prioritize employee well-being while driving organizational success.

• Live Sports Integration: WHOOP Live has brought cutting-edge physiological insights to sports broadcasts, showcasing real-time data from athletes in events like the PGA Tour, Tour de France, and Formula 1. By displaying metrics such as heart rate, strain, and recovery during pivotal moments, WHOOP enhances viewer engagement and provides an unprecedented look into the physical demands of professional sports.

Business Model

WHOOP’s business model is designed to generate sustainable, recurring revenue while maximizing customer lifetime value. The company employs a subscription-based model that offers the WHOOP band for free with a membership plan, distinguishing itself from traditional one-time hardware purchases.

• Revenue Streams: WHOOP’s primary revenue source is its subscription model, which starts at $30 per month. Customers gain access to both the hardware and an integrated software platform that provides advanced health and performance insights. Subscription tiers include WHOOP Pro, offering additional perks such as free shipping, exclusive discounts, and early access to new products. This seamless bundling of hardware and software ensures consistent cash flow and long-term customer retention.

• Transition from Hardware to Subscription: WHOOP initially sold its devices at a one-time cost but pivoted to a subscription model in response to market dynamics and consumer behavior. This transition was informed by the success of competitors like Fitbit and Peloton, which demonstrated the advantages of prioritizing recurring revenue over one-off sales. WHOOP’s focus on low churn rates and high customer engagement has solidified the effectiveness of this model.

• Influence from Competitors: Drawing inspiration from established players, WHOOP refined its strategy to emphasize the value of bundled services. Unlike Fitbit, which has struggled with customer retention in the past, WHOOP has maintained a loyal user base by offering highly specialized insights tailored to high-performance users.

• Enterprise Expansion: WHOOP Unite represents a significant growth opportunity. This enterprise-focused platform is designed for professional sports teams, corporations, and government organizations. By providing data-driven insights into employee health, recovery, and productivity, WHOOP Unite enables organizations to implement scalable wellness programs. Current clients include professional sports franchises, healthcare institutions, and corporate wellness initiatives, highlighting the platform’s versatility.

• Customer-Centric Design: WHOOP’s approach is rooted in understanding its users. The band’s screenless design minimizes distractions, appealing to data-focused, high-performance individuals. This specialized approach sets WHOOP apart from multifunctional wearables like the Apple Watch, allowing it to dominate a niche market.

Opportunity

The global wellness market, valued at $1.5 trillion in 2021, is experiencing robust growth of 5–10% annually, fueled by increasing consumer focus on health and well-being. Within this space, the wearable fitness tracker market is booming, projected to surge from $45 billion in 2021 to $192 billion by 2030, driven by advancements in technology and rising demand for health monitoring solutions. WHOOP has positioned itself as a premium product within the wearables market, differentiating from competitors like Apple Watch, Fitbit, and Oura.

Here’s how:

• Niche Focus: WHOOP targets high-performance users with an emphasis on recovery, strain, and sleep—features often overlooked by multifunctional wearables.

• Enterprise Adoption: WHOOP Unite taps into lucrative markets, from corporate wellness programs to professional sports teams.

• International Expansion: With plans to localize its app for more languages and regions, WHOOP is poised to capture new markets globally.

• Highly Specialized Data Analytics, offering actionable, personalized insights tailored for optimizing athletic performance, recovery, and overall health—areas where its competitors often provide more generalized health tracking.

Competition

WHOOP operates in a highly competitive landscape where several notable players vie for market share. Here’s a breakdown of its key competitors:

• Oura: Oura sells a smart ring with similar features to the WHOOP 4.0. Founded in Finland in 2012, the company has raised $148.3 million in funding. Like WHOOP, Oura offers tools for tracking movement, steps, heart rate, recovery, sleep cycles, and blood oxygen levels. Its premium app subscription is $5.99 per month, and it also targets enterprise clients, listing the US Navy, Brex, and NASCAR among its customers. Unlike WHOOP, Oura’s branding focuses more on holistic wellness rather than high-performance athletics.

• Apple: The Apple Watch offers fitness and sleep tracking but serves a much broader audience than WHOOP. WHOOP CEO Will Ahmed has said he doesn’t view Apple as a direct competitor, as WHOOP is not a smartwatch and emphasizes high-performance health tracking over interactivity. Still, Apple’s advances in health features mean some overlap in customer bases.

• Fitbit: Acquired by Google in 2021 for $2.1 billion, Fitbit offers a suite of health, activity, and sleep tracking tools. Fitbit’s product line includes smartwatches and trackers, serving over 29 million active users. WHOOP differentiates itself through its focus on low churn and specialized insights compared to Fitbit’s broader appeal.

• Amazon: Amazon’s Halo Band closely resembles the WHOOP 4.0 and costs just $69.99, with a $3.99/month membership offering health and activity tracking tools. While the Halo Band directly competes with WHOOP on price and design, WHOOP CEO Will Ahmed has expressed confidence in WHOOP’s product defensibility and innovation.

Valuation and Investor Growth

WHOOP has raised significant capital in recent years, with notable backing from SoftBank's Vision Fund. This influx of funding has fueled substantial growth, enabling WHOOP to expand its product offerings and market presence. However, such rapid growth comes with inherent risks. WHOOP’s current valuation stands at approximately $3.6 billion—71% higher than Fitbit’s valuation at the time of its acquisition in 2021. For WHOOP to justify this elevated valuation, continued substantial growth is essential. At this scale, a public market exit appears to be the most viable strategy, as the company may now be too expensive for acquisition by most buyers, save for tech giants like Apple, Google, or Amazon.

Interestingly, shares are currently trading around $1.50 on secondary markets, valuing the company at approximately $1.12 billion. This presents a compelling investment opportunity, allowing investors to buy into WHOOP at a price significantly lower than Fitbit’s exit valuation, highlighting the potential for upside in a burgeoning market.

Pros and Cons

How to Invest

Currently, accredited investors can purchase WHOOP shares through Forge with a $100K minimum and on Hiive with a $30K minimum. WHOOP is a fairly permissive private stock company, meaning that they allow many trades to go through. That said, larger trades are generally easier to get accepted by the company. If you're interested in investing, I recommend reaching out to both platforms to determine where you can secure the best offer.

If you choose to invest, here are a few parting words of advice:

• Accredited investors only: Private market opportunities require accreditation.

• Trust the platforms: Forge and Hiive are reputable operators with a strong track record.

• Expect delays: Private market transactions can take time to close, and not every deal goes through. Don’t be discouraged—other opportunities will follow.

WHOOP is the most performance-oriented wearable company on the market today. Their success will likely depend on the increasing health consciousness of the general population and their ability to expand partnerships into professional sectors.

As always, if you want us to clarify anything in this material, shoot us an email at [email protected], and we’ll respond as soon as we can.

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