Pact (currently known as GymPact) is a smartphone app that fines users $5 for skipping committed workouts and pays $0.30–$0.50 for meeting them. It verifies activity with GPS data and photos and requires notes from doctors or employers to confirm excused absences. The service runs on iOS and Android and is based in San Francisco. Pact takes $0.50 from every transaction it processes as part of its business model. The company has raised $1.55M in the most recent funding and $2.4M in total from two seed rounds. The new funding is intended to help expand its workout-motivation model to dieters. Pact’s core product (still called GymPact) lets users create a weekly “pact,” stake money they’ll forfeit if they miss goals, and earn rewards from a community pot when they succeed; the platform takes a transaction fee before paying winners. The app verifies attendance with GPS and requires users to stay at workout locations at least 30 minutes to prevent drive-by check-ins. Since launch the service has incentivized over 250K workouts, paid out $100K in rewards, and reports an 86% success rate among participants. Initially available on web and iPhone, Pact has an Android app in private beta and is prioritizing integrations with running, cycling and other activity trackers planned for release in August. After graduating TechStars Boston the company relocated to San Francisco and is using the new funding to expand the team and cement those integrations.

Total raised

$2M

Funding rounds

2

Latest round

Seed

Latest activity

Jan 2014