Min: $25,000Max: $107,000
Time to Invest
Minimum Investment: $100
Min: $25,000Max: $107,000
Time to Invest
Launched app on iOS devices in August 2018 and on Android in January 2019, averaging over 300 downloads per month thus far in 2019
Currently focused on the Austin market, with plans to expand to additional Texas cities in 2019, and nationally once the platform reaches 10,000 active users
Has raised over $200,000 in funding since inception
Over 35 million people in the U.S.i and over 200 million people globally use dating apps or websitesii
Almost 50% of all Millennials participate in some level of fitness.iii Heart Rate Social is an app and a community exclusively for individuals who care about health and fitness.
Security Type: Crowd Note
Round Size: Min: $25,000 Max: $107,000
Valuation Cap: $2 million
Conversion Provisions: In connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into non-voting preferred units (Conversion Units) at a price based on the lower of (A) a 20% discount to the price per unit paid for Preferred Units by investors in the Qualified Equity Financing or (B) the price per unit based on a $2 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
Investors that purchase the first Fifty-Three Thousand, Five Hundred (53,500) Crowd Notes and thereby fund the first Fifty-Three Thousand, Five Hundred Dollars ($53,500) will receive Crowd Notes with a thirty percent (30%) discount conversion provision instead of a twenty percent (20%) discount. That means, in connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into non-voting preferred units (Conversion Units) at a price based on the lower of (A) a 30% discount [instead of 20%] to the price per unit paid for Preferred Units by investors in the Qualified Equity Financing or (B) the price per unit based on a $2 million valuation cap.
Whether it’s concerns about privacy,iv or feeling overwhelmed by the massive amount of content, many social media users have begun looking for niche market alternatives where they can more easily connect with like-minded people and express themselves.v Social dating apps are similarly trying to find an alternative way to enter a Tinder-dominated environment by targeting niche markets that cater to individuals with specific preferences or lifestyles.vi Although many individuals find significant others online, some of the most popular dating apps have sacrificed substance for superficiality in order to optimize ease of use. This can make it difficult to find like-minded individuals who have the same lifestyle interests.vii
Launched in August 2018, Heart Rate Social is a platform for people who enjoy the health and fitness lifestyle so that they can find a workout partner as passionate as they are, find local fitness events, or even find that special someone. Since inception, the company has raised over $200,000 which it used to extensively test the mobile app throughout 2017 and 2018 with the help of 800 beta users. Once the company was satisfied with its product, it released the app to the public in August 2018. Although the company currently only operates in Austin, TX, it hopes to expand into additional U.S. markets, as it seeks to penetrate the online dating market that is used by 49.7 million Americans.viii Proceeds from this raise will be used primarily for marketing as Heart Rate Social seeks to initially expand into large Texas markets like Dallas, Houston, and San Antonio before expanding nationally. Its initial goal is to reach 10,000 users in the Texas markets before it expands nationally, after which Heart Rate Social plans to establish revenue-generating features such as VIP membership subscriptions and ticketed special events.
Heart Rate Social connects users in three categories: friends, dating, and workouts. In order to connect with like-minded individuals, users must specify what they are interested in when signing up. They have the option to sign up using Facebook or can create an account manually. Users input their date of birth, workout interests, and nutritional habits as well as the age range, and gender of the people they are looking to connect with.
When a user creates an account, they can add up to six photos, a short personal bio, relationship status, and occupation. Once the profile is complete, Heart Rate Social automatically generates a list of people that have similar interests. Users see up to 30 matches per day and can either follow, like, or discard a profile. Additionally, users have the option of following someone they are interested in before connecting. This provides a social dynamic where users can gain followers, post updates for their followers, and like other users’ posts and photos. If the individual being followed follows a user back, they can start messaging each other and plan activities where they can meet and workout together. Also, if the users “like” each other’s profiles, they can message each other.
Heart Rate Social also features an events tab so users can connect offline. The company hosts its own events that are open to anyone, and users are able to create their own private or public events.
Heart Rate Social intends to use the majority of proceeds from this raise for general marketing, sales, and research and development. The company plans to first expand in Texas markets, surveying the number of potential customers in each city and testing which advertisements are most effective. In order to help with sales efforts, the company plans to hire a sales representative. Once established in Texas and the company hits its goal of 10,000 active users, it plans to further spend on marketing and sales to help expand nationally. In 2019, the company first plans to expand statewide, focusing on Houston, Dallas, and San Antonio. Upon reaching 10,000 active users, national expansion will first target markets such as Los Angeles, New York, Seattle, Boston, and Chicago.
The company is also planning on expanding its app to include paid features. One future initiative is the sale of credits through the app which will be used to redeem features like “heartbeat,” the ability to refresh a user’s feed, and a VIP subscription.
Currently, Heart Rate Social is focused on building its user base and does not generate revenue. Once the company hits its initial goal of 10,000 active users, it plans to launch a revenue-generating business model. The company plans to charge monthly membership fees, fees for specific in-app events, and generating revenue through in-app purchases and paid advertisements on the platform. The company plans to initially release a “credits model” where users can purchase credits that can be redeemed for special in-app features including the following:
The company has not yet determined how much each credit or extra feature will cost.
Heart Rate Social is also considering adding another feature where users will be able to view all other users who have liked them. This will allow users to make quicker connections across all three categories. Although not definite, the company anticipates charging either $6 per month or a one-time payment of $15 for this feature.
Currently, Heart Rate Social has close to 3,000 downloads and over 2,600 users. The majority of Heart Rate Social users are based in Austin, Texas. The company first plans to expand statewide in 2019, focusing on Houston, Dallas, and San Antonio. Once the company hits 10,000 active users, it plans to expand nationally, starting with Los Angeles, New York, Seattle, Boston, and Chicago.
In 2019, the company has averaged roughly 300 iOS downloads per month, up from an average of 205 from August to December 2018. Heart Rate Social saw a spike in iOS downloads in January 2019 due to an increase in advertising that was also leveraged to promote the launch of Android version. The company has not yet spent a considerable amount on advertising and plans to ramp up advertising with the proceeds from this raise in order to increase its user base.
Since inception, the company has held over 20 events in Austin. Its launch party was attended by over 200 participants. The Heart Rate Social Team has hosted happy hours, dance parties, yoga events, and hiking events in Austin, and future events include a 5K run in December 2019. The company aims to give their members a chance to meet in person and do something healthy or fun.
Heart Rate Social is currently pre-revenue and anticipates launching its revenue-focused business plan after reaching 10,000 users. In 2018, the company’s operating expenses totaled $169,958, up from $54,631 in 2017. The company increased its spending on advertising and promotion (~$37,000), and increased spending on designing the iOS app and develop the app for Android (~$94,000 on software design). The company also paid roughly $28,500 for third-party contractors to further develop the software. In Q1 2019 the company had $39,339 in total expenses. The majority of expenses in 2019 went towards product design (~$21,000) and advertising and promotion (~$11,000). The company has averaged a monthly burn rate of roughly $13,000 so far in 2019, down from a monthly burn of over $23,000 in Q4 2018 and down from an average of roughly $14,100 in all of 2018. The monthly burn rate has declined in 2019 due to the company no longer spending extensively on software design for the iOS and Android apps. The company anticipates a lower burn rate in the near term now that the iOS and Android apps are fully developed but plans to increase its spending upon completion of this raise for marketing, sales, and research and development.
Expenses spiked in the second half of 2018 as the company increased spending on software design and third-party contractors to update the iOS software design and develop the app for Android devices. The company launched the app for Android in the beginning of 2019. The company also increased its spending on advertising and promotion in the second half of 2018 holding over 20 events for users in Austin, which included happy hours, hiking events, yoga, and more. Thus far in 2019, the company has realized a minimal burn rate as it is planning to use the proceeds of this raise on marketing now that the app is fully developed for iOS and Android devices.
Health and wellness are daily, active pursuits for the millennial generation. In a recent study, millennials prioritized health and wellness above all response options but family: 79% of millennials said family was most important in their lives, followed by health and wellness at 53%, and friends at 39%. Although the millennial generation is earning less than older generations, they are spending more on health and fitness. Technology has also given millennials easier access to health and wellness information and personal health monitoring.ix
According to a survey conducted by Myprotein, the average American spends $155 per month on health and fitness, which equates to almost $112,000 over a lifetime. Nearly one-third of this spending goes directly to fitness, with 22% going towards gym memberships and 9% going towards personal trainers. The remaining spending goes towards supplements (36%), gym clothing (22%), and nutritional advice (11%). Of those surveyed, 87% paid for a gym membership each month.x
Social media platforms have become a major influence with respect to people’s fitness goals, workouts, and nutritional habits. Social media has also become a major source of information and education related to wellness and fitness. In fact, more than 40% of social media users indicated that information found on social media affects the way they approach health. Additionally, being part of a social media fitness group encourages more people to take action and participate in certain health and fitness activities.xi Brick-and-mortar establishments are also utilizing social networking to increase its business appeal. High-end fitness gym Equinox offers community-focused events, including cultural events, exclusive classes, and networking nights. The Chelsea Piers fitness studio in Brooklyn has a lounge intended for socializing, while Barry’s Bootcamp offers a concierge service for guests to book treadmills next to each other before classes.xii
According to The Statistic Brain Research Institute, more than 49.7 million Americans have tried online dating,xiii and more relationships or marriages are started online than ever before. In 2017, The Knot conducted a survey of more than 14,000 engaged or recently married individuals and found that 19% of brides met their spouse online, up from 5% in 2015.xiv Further, the original stigma that dating apps were only for millennials and young adults has faded, as a wider age demographic is embracing dating apps or websites; 41% of dating app users in the United States are between the ages of 35 and 64.xv
In 2018, venture investment in dating-focused startups reached $127 million, up from $82 million in 2017 and $47 million in 2016. The number of investments in dating-focused startups has remained relatively flat over the past 5 years with 27 in 2018, 24 in 2017, 26 in 2016, and 26 in 2015. In 2015, dating-focused startups received $274 million in funding due to a $250 million investment in Beijing-based matchmaking site, Baihe.xi
In the past five years, there have been more than ten acquisitions in the dating industry. Most recently, Hinge was acquired by Match, Lovoo was acquired by The Meet Group for $70 million, and Wheel was acquired by Tinder. Before that, Plentyoffish was acquired by Match for $575 million in 2015, Frivil was acquired by Shaadi.com, Attractive World was acquired by eDarling, Lovestruck.com was acquired by DateTix, Lulu was acquired by Badoo, and Chill (Tappy) was acquired by Tinder.xii
Founded in 2018, SweatCity is a fitness concierge service mobile app. The app allows users to explore healthy hotspots nearby, connect with experts to elevate their health and fitness profile, and match with locals looking for a workout buddy. The app allows users to explore local fitness studios, healthy restaurants, organic coffee and smoothie bars, and more. The company employs fitness, nutrition, and sport medicine experts for users to connect with experts in various fields. Currently, its platform focuses on the Toronto market.xxi
DateFit is a social network and mobile app for the fitness community to connect with one another. The free app allows users to input their age, height, fitness interests, nutritional interests, and what they are looking for in a fitness friend. The app only shows the best potential matches based on the user’s info. Users can also become ambassadors of the brand if they have over 1,000 social media followers and a healthy lifestyle.xxii The company also partners with fitness brands including Gold’s Gym, FX Fitness, Orangetheory Fitness, Title Boxing Club, and others.xxiii The app had 20,000 downloads in its first five months of being live.xxiv
Founded in 2003, FitnessSingles is an online dating community for sports and fitness enthusiasts. The site is available in the U.S., Canada, Australia, Great Britain, Ireland, and New Zealand.xviii It offers users the ability to find a “fitness date” or just casual cardio friends or workout partners. Users input their favorite fitness activities, a short bio of why they love to maintain an active lifestyle, what they are looking for in a fitness partner, and photos. Every profile is reviewed by the company’s Quality Assurance team that seeks to promote a comfortable environment filled with quality individuals. Accounts on FitnessSingles.com are free but the company offers additional features for paying members including email and instant messaging and access to a private photo gallery viewable only by members they choose.xix FitnessSingles costs between $14.95 or $29.95 per month depending on the length of the subscription and additional features.xx
Founded in 2014, Bumble is a social networking platform for users to find friends, dates, and career-building resources. Bumble promotes the empowerment of women by requiring female users to make the first contact when they are matched with a male user. Users can sign up using Facebook and have the option of searching for romantic partners or can find friends via the “BFF” mode. In 2018, the company also launched the Bumble Fund to invest in early-stage companies founded by diverse, female entrepreneurs.xiii As of 2017, Bumble was generating over $200 million in annual revenue and had 40 million users, including two million paying users.xiv
Founded in 2009, Match Group is a provider of online dating services. It operates a portfolio of over 45 brands, including Match, Tinder, PlentyOfFish, Meetic, OkCupid, Pairs, Twoo, OurTime, BlackPeopleMeet and LoveScout24 that is currently available in more than 190 countries, with products in 42 languages.xv According to the company, it averages over 8.2 million subscribers across its products and 64% of relationships that started on a dating site or app began on a Match portfolio platform.xvi In 2018, the company reported revenue of $1.7 billion, up from $1.3 billion in 2017.xvii
Chris is a fitness professional with over ten years of experience as a health and wellness coach. Prior to Heart Rate Social, Chris co-founded and served as a Holistic Health and Life Coach at Think Great Lose Weight in Austin, Texas. Previously, he held several sales roles at VMware, Rackspace Managed Hosting, and Dell.
Ross is the Community Director at Heart Rate Social where he focuses on growing retention through community centered physical events around health, fitness, and social. Ross is also the founder of Padel and Beach Tennis and a Director at U.S. Padel. Previously, Ross worked as Tennis Facilitator at Publik Tennis in Austin, Texas.
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