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Virtual strength training startup Ladder raised $105 million in new funding, CEO Gregory Stewart tells Axios exclusively.

Why it matters: The investors structured the financing to get Ladder's subscription model to positive cash flow.

How it works: The Austin, Texas-based company offers a $29.99 monthly subscription that includes access to progressive, structured workouts designed to be completed at the gym or home.

Zoom in: The financing comprises a $15 million Series B led by Point72 Ventures and ADvantage VC and $90 million from General Catalyst's Customer Value program.

New investor PagsGroup and existing investors Tapestry VC and LivWell Ventures also participated in the Series B.

Between the lines: General Catalyst's investment commitment will fund monthly over time to meet anticipated customer acquisition, which will help shift Ladder's business to cash-flow generative, versus cash burning, Stewart says.

What's next: The company hopes to hit $100 million in annual recurring revenue by the start of 2026. It's set to hit 150,000-plus paid members by this year's end, with hopes to hit 400,000 by the end of 2025. 

In the immediate term, Ladder will use proceeds to develop an Android version of its product and expand into corporate wellness.

What we're watching: As it expands its consumer business, Ladder is starting to flesh out its enterprise offering.

Users are already submitting reimbursement for Ladder to their workplaces, while more companies are reaching out to ask about an enterprise-level version, Stewart says.

"That's the blue ocean at the moment," says ADvantage partner Jeremy Pressman, citing a heightened wellness appetite from employers.

Catch up quick: Ladder wasn't actively pursuing a Series B, after being well-capitalized following a Series A late last year, Stewart says. 

Yes, but: Ladder, which kept in touch with both Point72 Ventures and ADvantage over the years, was subsequently introduced to General Catalyst by a mutual acquaintance, he adds.

"They were solving a really specific problem around investment in customer acquisition," he says.

Ladder is constantly trying to balance between investing in new initiatives while onboarding new members — and saw an opportunity to hit both goals with this funding, he adds. 

What they're saying: "What we see happens quite frequently is that companies will be able to go from zero to one — or in this case, up to $10 million in ARR — and then they'll get stuck between $10 and ... $50 million," Pressman says.

Ladder's focus on building out successful coaches and a strong referral network sets it up for growth beyond that range, he adds.  

Exclusive: Virtual training startup Ladder gets $105M

Point72 Ventures, ADvantage VC, and General Catalyst were among the investors.

Illustration of quarters as weights on a barbell.

Health tech deals

Virtual strength training startup <a class="gtmContentClick" data-vars-link-text="Ladder" data-vars-click-url="https://www.axios.com/pro/health-tech-deals/2023/12/06/ladder-pulls-up-12m-series-a-for-remote-workouts" data-vars-content-id="13b0e241-56bc-4ec5-9e86-032dd9522c1e" data-vars-headline="Exclusive: Virtual training startup Ladder gets $105M" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/health-tech-deals/2023/12/06/ladder-pulls-up-12m-series-a-for-remote-workouts" target="_self">Ladder</a> raised $105 million in new funding, CEO Gregory Stewart tells Axios exclusively.Why it matters: The investors structured the financing to get Ladder&#x27;s subscription model to positive cash flow.

Exclusive: Virtual training startup Ladder gets $105M

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