Welltech Funding is a new NYC-based incubator focused exclusively on supporting the development of consumer-facing health and wellness companies and products. It was founded by the investors and executives behind SpaFinder.com and GramercyOne, and is located in the NYC Gramercy neighborhood.
Welltech already has two resident companies, Wizpert and FITiST, and can accommodate as many as five companies at one time. Wizpert is in private beta and has very little information available. FITiST is the first one-stop booking website for fitness and wellness, with expertly-curated workout plans designed to help you reach your goals.
Welltech co-founder Peter Ellis was quoted by TheNextWeb as saying;
The phenomenal success of SpaFinder and GramercyOne showed us that technology holds enormous potential for helping people lead healthier lives. NYC is home to some of the most creative innovators in both the technology and wellness sectors, and we look forward to working with them to take wellness-related technology and services to an exciting new level.
Companies accepted to the Welltech incubator will receive a minimum investment of $50,000 and will be required to complete a minimum six-month incubation period. Other details of the Welltech program are detailed in the table below.
Benefits for Selected Companies
- $50k–Minimum investment of $50,000
- 6 Months–Minimum 6-month ‘incubation/acceleration’ period (with possibility for extensions)
- Space–An energized, collaborative office space and environment, in a fabulous Manhattan building/location.
- Learn–The opportunity to work and learn shoulder-to-shoulder with other health/wellness companies in development — and with the executives/experts within SpaFinder, Inc.’s companies.
- Mentor–Dedicated mentorship from SpaFinder’s CEO and senior executives, providing ongoing feedback, guidance and support, as well as valuable connections to a network of industry leaders and entrepreneurs.
- Support–Invaluable marketing support, including exposure to a vast audience of wellness consumers and businesses at SpaFinder.com and via B2C and B2B database marketing.
- Services–Legal, accounting, business, human resources, telecommunications and tech support and services.
There is some fine print that all applicants should definitely be aware of before deciding to apply to the Welltech program. First, Welltech explicitly does not disclose how much equity they expect to receive in exchange for the initial $50,000 investment.
Second, if you aren’t already based in the NYC area you will have to relocate for the full six months of incubation. Third, Welltech will ask for the right to participate in future rounds of third-party funding, including the right to purchase up to 20-percent of such future rounds at the then determined valuation. Finally, though Welltech claims they will not put any strings on a future acquisition nor interfere with opportunities for growth, they will ask for preferential terms for SpaFinder to have the right to use developed products on SpaFinder.com.
The global health and wellness market is worth an estimated $2 Trillion, so this is certainly an area in need of innovation. The more I dig through the Welltech website, the more seems to me that this is much as much an effort to find complementary products/companies for the founder’s previous startup successes SpaFinder.com and GramercyOne as it is to spur innovation. Based on the information I have read about Welltech the less it is clear what the advantage is for an entrepreneur in this space to apply here compared to other incubators such as TechStars or Rock Health.