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following year, the company released its ICE NET model, which introduced touch-screens with Internet connectivity. By the late ’90s, Netpulse and its
Canadian competitors, E-Zone and Xystos, had installed their screens in more than 1,000 clubs and were growing rapidly. In 1998, a pivotal point in the business’ history, Tom Proulx, the cofounder of Intuit, the remarkable software success story, got involved in the company. In 2000, following several years of aggressive competition, Netpulse, E-Zone, and Xystos merged, but, when the Internet imploded in 2001, the combined entity was forced to file for Chapter 7 bankruptcy. Following the bankruptcy, Proulx
purchased the company’s assets for $25,000 and debt consideration. He then rehired several staffers and relaunched Netpulse, wi th new cofounder Bryan Arp as the CEO and himself as chairman. Now, a decade later, the prospects appear promising for Netpulse.
‘Four’ for the future “Over the past few years, four factors have aligned that should really allow our company to grow and expand,” explains Arp. “First, entertainment and media in the club environment have come to be a given—you can’t open a club today without some form of enter- tainment. Second: technology costs have fallen dramatically, so it’s now possible for manufacturers to include touch- screens and computing hardware in their equipment. Third: most clubs now have a high-speed Internet connection, the key to providing rich data and media. And, finally, over the past three years, content has been unlocked from the TVs in people’s living rooms; con- sumers are now able to enjoy their favorite media across multiple devices and venues. In fact, they demand it.” Entertainment systems aren’t new in the industry, acknowledges Arp, but, he
The prolific Netpulse platform
Netpulse Brain Trust
argues, the Netpulse approach—distin- guished by its willingness to constantly adapt—is different. Its platform isn’t defined by software, touch-screens, or any other specific technology. “Our single focus is on utilizing technology and media to make connections—to deliver an engaging experience to exercisers,” he says. “Technology and media are changing daily. We’re able to stay on top of, remain connected with, that world and, then, apply the appropriate tools to our platform.” “Netpulse is hitting the media trifecta,”
Jed Katz, the managing director of Javelin Venture Partners, said at the time of his firm’s investment in the company. “With Netpulse, the people exercising will have a much more enjoyable workout, the gyms benefit from lower attrition and by being able to run loyalty programs, and the advertisers get a solid 30 minutes of attention from a highly targeted, affluent consumer." “We’re extremely excited to support
a company that’s poised to redefine the connection between exercise and entertainment forever.” —|
Netpulse’s board of directors boasts depth of expertise in the fields of technology, fitness, and finance:
• Thomas Proulx, cofounder, chairman of the board: cofounder of Intuit, grew the company to 2,700 employees and $400 million in sales by the time he retired in 1994; an Inc. magazine Entrepreneur of the Year
• Mark Mastrov: chairman, New Evolution Ventures (NeV), a private equity firm with an interest in more than 1,000 health/fitness facilities worldwide; founder of 24 Hour Fitness Inter- national, Inc., which he sold in 2005 for $1.68 billion
• Jed M. Katz: managing director, Javelin Venture Partners, an early-stage venture capital firm that’s invested in Netpulse
www.
ihrsa.org | SEPTEMBER 2011 | Club Business Internat ional 103
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