It’s worth noting here that NGP Capital has previously invested in several digital health startups, including a San Francisco startup called Netpulse that provides fitness facilities with their own customized apps — which eGym acquired last year. As part of that acquisition, eGym offered NGP Capital the opportunity to invest in itself, an offer that NGP has now taken it up on.
So this was more of a strategic investment from eGym’s perspective than a direct need for cash. Indeed, eGym hopes to leverage NGP Capital’s knowledge of the U.S. digital health market.
“The U.S. is by far the largest market for eGym, and we need to be there,” said eGym cofounder and CEO Philipp Roesch-Schlanderer. “Working with NGP Capital, we now have a knowledgeable digital health investor with an extensive U.S. network to help guide our global expansion efforts. Our vision is big because we want to solve two problems that we believe are interlinked: Healthcare costs are skyrocketing and the gym fails often to deliver outcomes.”