The Idea Fund of La Crosse, which recently closed on its second venture capital fund, has led a $2 million round into a software startup that helps fitness boutiques manage their businesses.
The startup, St. Paul, Minnesota-based OfferingTree, will use the funds to expand its platform, marketing and team.
The Idea Fund invests in startups based in the Midwest. It said in May that it has closed on its second venture capital fund, raising $31.5 million to be invested in pre- and early-stage revenue startups in the upper Midwest.
Startup eyes growth
OfferingTree was founded in 2016 by CEO and co-founder Eddie Arpin with Arvind Menon, Alec Gorjestani and Alex Haley (who's no longer part of the company).
“Our focus will be on expanding our offerings, particularly to help more studios, gyms and teachers grow their business while giving them time back in their day, so they can focus on their clients’ fitness and wellness goals," Arpin said in a statement.
OfferingTree developed a platform similar to website builder Squarespace, providing a suite of tools to help fitness-based businesses. Haley ran a yoga studio and wanted software that had all of the tools he needed in one place.
Haley connected with Arpin, a software engineer for SportsEngine Inc. — a Twin Cities-based youth sports league management software company that was acquired by NBC Sports Group in 2016.
Arpin, Gorjestani and Menon built an all-in-one software kit that now supports brick-and-mortar gyms, yoga studios, martial arts dojos and online fitness instructors. The software allows for fitness boutiques to build websites, schedule employees, offer classes and appointments, receive payments and communicate with clients.
OfferingTree supports more than 1,500 wellness businesses on its platform across the U.S., Canada, the United Kingdom, Australia and New Zealand. It plans to focus on its continued growth.
Idea Fund gets money from state
Earlier this year, Idea Fund was named as a participant in the Wisconsin Investment Fund that was established in 2023 with $50 million in public funding the state received from the State Small Business Credit Initiative under the American Rescue Plan Act (ARPA).
Idea Fund is one of five Midwest venture capital funds administering the Wisconsin Investment Fund, which would be used only for investing in Wisconsin startups. It was awarded $6 million of the ARPA funds. Each participant matches its disbursement with private funding, resulting in a total of $100 million available to invest in Wisconsin startups.
