Led · Debt Financing · Mar 2024

FitLab is a multi-brand fitness company that operates a fully integrated platform designed to solve the siloed nature of the fitness industry. The company integrates multiple channels of the fitness ecosystem to deliver immersive experiences for members anytime, anywhere, and however they train. Using capital from the recent financing, FitLab acquired a fitness equipment manufacturer to further integrate its customers' fitness journeys. The company is ramping boutique fitness studios and has a partnership with a best-in-class global brand, which Atlas cited as complementary to the acquisition. FitLab received a $65 million Strategic Financing Facility from Atlas Credit Partners, with roughly $35 million funded at closing and $30 million of remaining availability. Billings & Company and Compass Point served as FitLab's financial advisors on the strategic acquisition financing. FitLab operates a hybrid fitness model that blends in-person training and at-home offerings, and is rolling out “connected fitness studios” to support that approach. The company says it will begin studio rollouts this year and is planning 250 U.S. locations with more internationally, targeting 500 locations by 2025. FitLab was founded in 2016 as a venture firm focused on sports and fitness and has since partnered with and acquired fitness brands including McGregor FAST and XPT. Recently it acquired the Fitplan app, sports apparel company Electric, and running-events organizer Ragnar to expand its portfolio. Financially, FitLab has closed a Series A funding round and says its total capital raised is now more than $15 million; the company did not disclose the exact size of the latest round.

Led · Equity · Jul 2023

Hyperice is a technology-driven wellness company headquartered in Houston, TX, led by CEO Jim Huether. Its product portfolio includes percussion devices (Hypervolt), dynamic air compression (Normatec), vibration tools (Vyper and Hypersphere), thermal technology (Venom), mind technology (Core by Hyperice) and contrast therapy (Hyperice X). The company serves elite athletes, leagues and teams as well as consumer markets and applies its technology across fitness, hospitality, healthcare, massage, physical therapy, sports performance and workplace wellness on a global scale. Hyperice has pursued growth through acquisitions, including Normatec, RecoverX and Core, which the company says have accelerated its innovation agenda. The firm recently secured new capital to support its next stage of global growth. Management intends to use the funds to expand operations and broaden the company’s business reach. Hyperice builds recovery and wellness hardware and software across percussion (Hypervolt), dynamic air compression (NormaTec), vibration (Vyper/Hypersphere), thermal (Venom), mind technology (Core) and contrast therapy (Hyperice X). The company has expanded into holistic high-performance wellness through product innovation and a new brand identity, and recently acquired mental-wellness firm Core—its third acquisition in 18 months following Normatec and RecoverX. Recent product launches include the Hyperice X portable contrast therapy device, Hypervolt 2, Hypervolt 2 Pro, Vyper 3 and Vyper Go, with multiple products now available across several global markets. Hyperice says its offerings serve elite athletes, leagues and consumers and has industry partnerships across sports and esports. The company reports a global footprint in more than 60 countries as it pursues broader consumer and international expansion. Hyperice makes medical and consumer devices designed to help athletes and fitness enthusiasts recover after workouts and games. The company sells therapy hardware and has partnerships positioning its products into professional sports leagues. Hyperice recently secured a $47.8 million investment that values the business at $700 million. The new capital is earmarked for sales and marketing and product development. Hyperice has inked official recovery-technology partnerships with the NBA and the UFC. The company plans to launch a software service to monitor and manage athlete performance and recommend recovery timing using integrated wearable data and services such as Apple Health and Strava. The deal brings high-profile athlete investors and league investment arms into the cap table, reinforcing Hyperice’s go-to-market with professional sports.

Led · Debt Financing · Apr 2023

SoundHound AI develops conversational voice-AI products and platforms, including recent launches Dynamic Interaction and SoundHound Chat AI. The company is focused on growing its subscription business with AI-based customer service offerings for call answering and restaurant food ordering while expanding its licensing business across smart devices, TV, and automotive verticals. It reported a $332 million bookings backlog as of December 31, 2022. To strengthen its balance sheet and fund growth, SoundHound closed a $125 million, four-year loan facility with $100 million funded at closing. The financing replaces roughly $30 million of existing debt, extends the maturity to 2027, and is described as minimally dilutive. The credit agreement also enables access to up to an additional $25 million and is expected to leave the company with more than $100 million in cash after closing costs and repayment of existing debt. SoundHound is a voice AI company that provides conversational AI services for automotive, connected home and hospitality applications. Its core product is conversational voice AI integrated via partnerships with Mercedes‑Benz, Kia, Hyundai, Toast, Qualcomm and Snap, and the company previously built music‑identification AI. The company went public in November 2021 via a SPAC at a $2.1 billion valuation and was once valued above $1 billion as a private company; that valuation has since fallen. SoundHound reported preliminary full‑year 2022 revenues of $31 million with gross margins over 70% and says it has a bookings foundation of well over $300 million. The company expects approximately 50% year‑over‑year revenue growth in 2023 and is positioning its voice AI products toward customer‑service demand. Earlier this month it laid off 40% of staff; part of the newly raised proceeds will cover severance and help shore up its market position. SoundHound develops Houndify, a voice-enabled AI and conversational intelligence platform built on its patented Speech-to-Meaning™ and Deep Meaning Understanding™ technologies and a Collective AI architecture. The platform provides fast speech recognition, sophisticated natural language understanding, knowledge graphs and developer tools, and exposes over 100 domains (weather, sports, flights, restaurants, etc.). Houndify powers more than 1,000 distinct products and has over 60,000 registered partners since its December 2015 launch. SoundHound also operates consumer apps—Hound (voice search & assistant) and SoundHound (music search and discovery)—that showcase the platform. The company plans to use new funding to drive adoption across automotive, IoT, consumer products and enterprise apps, and to expand globally with new offices in China, France and Germany while continuing momentum in the U.S., Japan and South Korea. The platform already integrates data and services from partners such as Yelp, Uber and Expedia and supports numerous automotive-specific domains. SoundHound began as a music-recognition app and has evolved under CEO Keyvan Mohajer into a company focused on conversational AI. It launched the Hound voice-powered assistant for iPhone and Android in March after around ten years of R&D. The company says Houndify has been embedded into more than 500 distinct products with over 20,000 partners, and its app has been downloaded more than 300 million times. SoundHound aims to build a voice-based AI that can understand increasingly complex, multi-part queries and plans to expand its AI patterns into other media such as text and images. With the new financing the company intends to invest heavily in what it calls “collective AI,” enabling developers to tap into shared domains and tools. Before this round SoundHound had raised around $40 million in financing.

Led · Equity · Mar 2023

Coherent Logix develops C-programmable processors and System-on-Chip solutions for embedded applications. The company invented the HyperX architecture, the HyperX System-on-a-Chip, and the HyperX Platform. It recently introduced the HyperX Midnight MCM, a System-on-a-Chip for space applications. Its product portfolio includes processors, integrated system development tools, optimized libraries, system reference designs, and a customizable system development platform that reduces development complexity and time to market. Coherent Logix supports solutions across consumer electronics, 5G mobile infrastructure, video/broadcast infrastructure, machine vision, sensor processing, and AI. The company received a USD85M investment and plans to use the funds to accelerate growth and expand operations and business reach.