Egosistema Raises €2.35 Million on CrowdFundMe

Gym network Egosistema has already raised €2.35 million in its equity crowdfunding campaign on CrowFundMe, which had a minimum fundraising target of €800,000 (or 4.2 percent of capital) and a maximum target of €3 million, based on a pre-money valuation of €18.1 million. The campaign will end in the second half of October.

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Investors in Egosistema gym network

To date, 57 private investors have invested, including well-known names in the national financial scene, such as Massimiliano Pogliani, former CEO of Illy, and Arrigo Berni, adjunct professor of Strategic Management at the Milan Polytechnic and former CEO of Moleskine.

Pogliani commented, “In the post-Covid era, the importance of maintaining a healthy physique and a balanced mind has become more evident than ever. I invested in the company because I believe it is a project that goes far beyond the simple notion of a ‘fitness center.’ The growing trend to adopt healthier lifestyles is therefore not a temporary phenomenon, but a new awareness that will remain rooted in the social fabric. Italian Gyms is perfectly positioned to respond to this growing demand.”

And Berni added, “Socio-demographic trends favoring the sector. The selection was caused by Covid-19, which has favored solid operators such as Egosistema. The quality of management that, in the face of the crisis due to the pandemic, has been able to improve management efficiency and put the company in the best condition to take advantage of the recovery.”

Funding raised in the crowdfunding campaign on CrowdFundMe will be used for the opening of a next-generation flagship club that will serve as an experimental model for the gradual adaptation of all the group’s other clubs, the acquisition and reopening under the Prime and Palestre Italiane brands of two existing clubs, the creation of a smart digital platform where live streaming courses can be delivered and with which to remotely manage all the centers’ activities, and the energy efficiency of the facilities to reduce environmental impact.

The group, founded and led by Francesco Iezzoni and presents with 12 directly operated clubs in six Italian cities, including Milan, Rome, and Bologna, operates through the two brands Prime (premium segment) and Palestre Italiane (budget gym segment) and an academy for training trainers.

Since 2009, Egosistema membership has grown from 900 to 30000, revenues from €589,000 to a 2023 forecast of €15 million, despite the setback suffered by the fitness business at the turn of 2020 and 2021 due to the Covid-19 pandemic.

Specifically, in 2022, the company reported consolidated revenues of nearly €12 million, €3.3 million higher (+38 percent) than in 2021, and in the first six months of 2023 further increases of more than €2 million (+31.7 percent compared to the same period in 2022), reaching a total of €7.7 million in the first half of this year.

Recall that Iezzoni, prior to this venture, was Senior Consultant/ Business Strategist for Vodafone, Barilla, Zegna, among others. MBA Master Medium and Small Medium Enterprises SDA Bocconi, he is also currently president of Fit. Comm, the association that groups the main Fitness business players operating in Italy.

From 2019 to 2023, the Italian Gyms network was judged the “Best Fitness Club Service in Italy,” according to the “Best in Italy – Service Champions” survey, the largest research in our country dedicated to the level of service offered to Italian consumers. Over the five-year period, the brand has also improved its members’ ratings, placing it ahead of leading Italian and foreign competitors.

“The choice of equity crowdfunding was dictated by the desire to actively involve our customer base in the growth and evolution of our network,” Iezzoni said. “It is a mode of financing that is accessible to a wide range of audiences, thanks in part to platforms such as CrowdFundMe, which make the process convenient and transparent. After all, since we became a SPA, we have embraced alternative forms of financing to traditional credit channels. It makes me proud that Egosistema is becoming a trailblazer in this area as well, just as it has been in fitness.”

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(Featured image by  andrey_braynsk via Pixabay)

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First published in Be Beez. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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