INVEST IN VIRZOOM TODAY!
VirZOOM’s team has developed VR exercise apps and games based on proprietary technology since early 2015, and shipped commercially since June 2016. Collectively, our work encompasses over 162 years of game design and over 40 years of VR development, building a number of best-selling products including Guitar Hero ($1B rev), Rock Band ($2B rev), and Dance Central ($50M rev).
Our current shipping 3rd generation product is our VR fitness subscription service VZfit 2.0. MRR grew 30% and Subscriptions 40% in 2022 over 2021. VZfit sales in early 2023 are up 27% over the same 2022 period.
We are developing our 4th generation of Virtual Reality Exercise Games based on new technology and recently launched our testbed app for this new tech.**
the pitch
VirZOOM’s patented and patent-pending VR motion technology allows users to move continuously and freely through the Metaverse, controlling motion through VR worlds with body movements and position while standing. We are pioneering fitness-oriented virtual reality games that play like sports in the real world. You get fit by playing games designed for exercise, Virtual Reality Exercise Games. Our motion technology is patented under the same name, Virtual Reality Exercise Game and trademarked as Virtual Reality that Moves You®.
Overview
To create physical VR games that play like real world sports, the VR industry needs a new form of locomotion. That’s what VirZOOM does. Our patented and trademarked technology solves one of the biggest problems in VR, allowing users to move through the Metaverse continuously and freely without inducing VR sickness. Our technology lets us create physical VR games that are fun to play and at the same time deliver exercise benefits, the way sports like skiing and cycling do in the real world.
Jeremy Bailenson, founding director of Stanford University’s Virtual Human Interaction Lab (source), put it this way after trying VZfit games last year:
"I was blown away by the VirZOOM experience… it is critical to leverage the natural leaning movements that our perceptual systems have grown used to in the real world. By integrating head movements with pedaling, VirZOOM’s control scheme was shockingly easy and engaging.
They have discovered how to solve one of VR’s hardest problems – moving freely through large virtual spaces without getting dizzy or uncomfortable. I normally avoid any experience in VR that is not based on physically walking, but leaning into turns while pedaling through virtual space is among the best experiences I have ever had in VR in 25 years."
*This testimonial may not be representative of the experience of other customers and is not a guarantee of future performance or success.
*VZfit, our 3rd generation VR Exercise Games
THE PROBLEM & OUR SOLUTION
Affordability. Convenience. Motivation.
A recent study conducted by the CDC, found that only 53.3% of adults are meeting objectives for aerobic physical activity and only 23.2% met the guidelines for both aerobics and strength-training (source).
Meanwhile, the World Health Organization has identified physical inactivity as being a leading cause of disease and disability on a global scale (source). So why aren’t more people exercising? According to exercise.com, the most pressing challenges for staying active are lack of motivation, lack of convenience, and the high cost of investing in gym memberships or equipment.
Taking a closer look at the numbers:
Enter: VZfit. A VR-based solution that is affordable, convenient, motivating, and scientifically proven. For just $449 ($349 Meta Quest 2 + $99.99 annual subscription), VZfit customers typically log 40 minutes of exercise, 3 days per week, nearly twice the CDC’s recommendation of 75 minutes weekly. And what’s more, many of our users tell us playing VR Exercise Games doesn’t feel like working out at all. Some call it: “The workout without the work.” As a recent reviewer at Men’s Fitness states: “[With VZfit] 20 minutes have flown by and I haven’t even noticed.”
But we are not done!
VZfit, our third generation product, focused on users with fitness equipment. But there is a much larger market of VR users who could benefit from games like ours. This is why we went back to the drawing board and created the patent-pending motion tech that is in Motion Labs. This testbed app is going to be the future of VirZOOM and we expect our next generation of fun fitness apps to stem from it. And the best part is, you can try it yourself!
*The above is a rendering of a future product. Product is still currently under development and is not yet available on the market.
Additionally, the effectiveness of VirZOOM’s VR Exercise Games has been clinically proven in tests conducted by Exeter University London and Brunel University and published in the peer reviewed British Journal of Health Psychology: Ready Exerciser One: Effects of music and virtual reality on cycle ergometer exercise
Researchers concluded: “The VR and VR-with-music conditions elicited the most positive affective valence, highest levels of perceived activation, greatest number of dissociative thoughts, and most exercise enjoyment… The present findings illustrate the efficacy of modern VR technology in the exercise context.”
THE MARKET & OUR TRACTION
"The global metaverse market size in 2022 was valued at US$47.48 billion with a growth rate of 39.44% CAGR to a valuation of US$678.80 billion by 2030." - Strategic Market Research, June 2022 (source)
“A lot of people have been using VR for fitness. It’s probably the most fun way to get in some quick cardio.” - Meta Platforms CEO Mark Zuckerberg, October 2020 (source)
In October 2021 Meta Platforms CEO Mark Zuckerberg identified VR Fitness as a strategic segment of the company’s future Metaverse plans (source).
That month, Meta announced the acquisition of VR Fitness developer Within, maker of popular VR Fitness app SuperNatural, for $400M (source). Since 2019, Meta has acquired 11 VR technology and game studios including CTRL-labs, Beat Games, Sanzaru Games, Scape Technologies, Ready at Dawn, Lemnis Technologies, Downpour Interactive, BigBox VR, Within, Twisted Pixel Games, and Armature Studio (source).
HTC launched their new Elite XR Mixed Reality (VR and AR) headset and identified VR Fitness among four applications for the new headset (source). Our current shipping product VZFit is available through the Meta Quest store where it has been installed by over 740,000 users and is among the top 10% of the platform’s earners, generating over $1 million in lifetime revenue (source). Our platform has nearly 6,000 subscribers and averaged $50K MRR in 2022, a 762% increase over 2019. We have also achieved a 4.0 out of 5 stars rating from our app customers.
Recent milestones in 2022 include:
* Source: VZfit telemetry Feb. 5, 2023 since May 2019
** Sources: VZfit telemetry average 29 calories/vKM. Statistical average 32 calories per kilometer (https://burned-calories.com/cycling)
VirZOOM’s VR Fitness segment traction:
Why Invest
Over the past seven years, VirZOOM has been able to establish itself as an innovator in the virtual reality and gaming space, with a patented system that levels up the VR fitness experience. With more products and partnerships in our pipeline, we believe our proprietary motion control technology will be capable of carving out an entirely new category of exercise games. We aim to expand on the VR Exercise Game category we created to include every VR headset user and inspire even more users to get fit while playing VR games and get fit in the metaverse.
VirZOOM is a patent-based Virtual Reality Exercise Game platform that combines fun, fitness, and Metaverse exploration all in one. Our elite ensemble of game designers and developers has shipped three generations of products since 2016. Our current subscription-based app has nearly 6k subscribers and over 740k installs on Meta Quest. Now we’re developing our 4th gen products to reach a customer audience many times larger.
Eric Janszen
Founder, President & Director
Eric Malafeew
Co-Founder & CTO
Michael W.G. Fix
Director, Investor, Advisor
Jason Warburg
Chief Product Officer
Robert Collins
Chief Operating Officer
Peter Macdonald
Art Director
Christine Barrett
UI/UX Software Engineer
Eyal Zilberman
Customer Experience Manager
Ben de la Cretaz
Consulting Chief Financial Officer
Danielle Quinlan
Consulting Social Media Marketing Coordinator
Ike Adams
Consulting Senior Software Engineer
Maximum Number of Shares Offered subject to adjustment for bonus shares
Company | : | VirZOOM, Inc. |
Corporate Address | : | 56 JFK Street, Cambridge, MA 02138 |
Offering Minimum | : | $9,999.92 |
Offering Maximum | : | $911,955.66 |
Minimum Investment Amount(per investor) | : | $249.90 |
Offering Type | : | Equity |
Security Name | : | Series A-5 Preferred Stock |
Minimum Number of Shares Offered | : | 20,408 |
Maximum Number of Shares Offered | : | 1,861,134 |
Price per Share | : | $0.49 |
Pre-Money Valuation | : | $45,758,966.05 |
*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.
Company Perks & Incentives
Loyalty Bonus | 10% Bonus Shares
As you have previously invested in VirZoom you are eligible for additional bonus shares.
Time-Based
Friends and Family Early Birds
Invest within the first 7 days and receive 5% bonus shares.
Super Early Bird Bonus
Invest within the first two weeks and receive 3% bonus shares.
Early Bird Bonus
Invest within the first three weeks and receive 2% bonus shares.
Amount-Based
$500+ | Bronze Tier
Invest $500+ and receive 1% bonus shares.
$1,000+ |Silver Tier
Invest $1,000+ and receive 2% bonus shares.
$2,500+ | Gold Tier
Invest $2,500+ and receive an exclusive VirZoom hoodie and 3% bonus shares.
$5,000+ | Platinum Tier
Invest $5,000+ and receive an exclusive VirZoom hoodie, 5 free copies of VirZoom's next title, early access to VirZooms next title, and 4% bonus shares.
$10,000+ | Diamond Tier
Invest $10,000+ and receive an exclusive VirZoom hoodie, 5 free copies of VirZoom's next title, early access to VirZoom's next title, a 30-minute call with CEO/Founder Eric Janszen, and 5% bonus shares.
*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.
The 10% StartEngine Owners' Bonus
VirZOOM, Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Series A-5 Preferred Stock at $0.49/ share, you will receive 110 shares of Series A-5 Preferred Stock, meaning you'll own 110 shares for $49. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share
This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.
Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner’s Bonus and Loyalty Bonus in addition to the aforementioned bonus.
Irregular Use of Proceeds
The Company will not incur any irregular use of proceeds.
03.21.23
03.20.23
Hi Everyone,
The VirZOOM team is excited to be here with you on StartEngine!
In this first update I'd like to take a few moments to introduce you to VirZOOM, what we're all about and why we're running this campaign.
Customer Problem
The fitness industry is famous for fads and gimmicks. Back in 2015 when we started we wanted to create something real and lasting, an entirely new enjoyable, convenient, and affordable physical activity that never existed before, made possible by the unique immersive quality of VR. We call these VR Exercise Games. We have a patent on the technology that makes them possible: “VR Exercise Game.”
In 2015 we set out to harness the unique immersive power of VR to solve a large and persistent customer problem, to give consumers a new way to get the regular exercise they know they need but have not been able to get themselves to do, no matter how hard they try.
We wanted our VR Exercise Games to be so varied and enjoyable that our customers play them over and over again. They'll lose weight and improve cardio health without having to commit themselves to a boring fitness routine that they are unlikely to stick with. We knew that if we succeeded we could change thousands of people's lives for the better.
Our Solution
The most common reasons people give for not exercising are that they aren't motivated, don't have time, or can't afford it, or all three.
When you put on a VR headset and launch our shipping VR Exercise Game VZfit, you are transported into virtual worlds. Unlike flat screen in-home solutions like Peloton, you aren't looking at a screen on a tablet in front of you. The virtual world is all around you. As you propel yourself through these virtual worlds under your own power and control, you react to the world and it reacts to you, much like sports in the real world.
Unlike the real world, we have created fantastical experiences to let you do things in VR you could hardly imagine doing in the real world. You can explore 10 million miles of roads mapped by Google Street View, or play games to race, chase, fly, and battle in competition with AI or other live players.
Our Mission
"To make an hour of in-home fitness feel like 20 minutes of fun." Did we succeed?
Our VZfit app since early 2021 has earned a 4 out of 5 Star rating on the Meta Quest store where VZfit is sold. Here are a few samples out of 324 of the 5 Star reviews.
This is what gets us up in the morning, to constantly improve this new form of exercise we've created that is helping thousands get more fit and healthy.
The quality of our VR Exercise Games that keeps customers playing frequently for years does more than satisfy our desire to improve the health of our fellow humans. It also translates into high customer retention and that's critical for building a strong recurring revenue business. Improving the health of our customers and creating shareholder value go hand in hand.
Pleased as we are to have fulfilled our mission "To make an hour of in-home fitness feel like 20 minutes of fun" for so many customers with our early generations of products, we knew that we had one step farther. We needed to find a way to get this winning exercise motivation solution into the hands of more consumers. That's where our new VR motion tech and VR Exercise Games comes in.
Under the hood of our VR Exercise Games, as I mentioned at the beginning of this update, is patented VR motion tech. It relies on the use of a stationary bike as a game controller: the faster you pedal, the faster your avatar moves through the world. You steer by leaning.
Fantastic as the resulting user experiences are that we can build from this control scheme, a business challenge remains: Meta reports they've sold 20 million Meta Quest headsets. We estimate that only around 1% of them also have a bike to use with VZfit. That restricts our total available market to around 200,000 Quest users. If we can convert 20% of them into $12 monthly subscribers that's a decent $5.8M ARR business, but we can do better.
What if we could find a way to get our VR motion tech to work without a bike, with the VR headset alone? Then we could bring the benefits of our VR Exercise Game solution to millions of users, not just thousands.
That's what we started to do last year. First, we filed a new patent on a way to use your body to move freely and accurately through VR worlds using body position alone, no bike needed. We call this tech "Body-Active VR Controls." With the bike-based games, pedaling to play made you exercise. With our new headset-only games, game play movements like squats to duck or jump, combined with arm movements to throw, hit, and grab as part, produce the exercise benefit.
Next we developed our first prototypes of these new games. These are now available on the Meta Quest Apps Lab store in an app called MotionLabs. Based on user feedback of these test games we plan to derive New Game X, the code name for the world's first Body-Active VR Exercise Game that we plan to develop next.
Summary
We're not satisfied with thousands of healthy customers, we want millions. The purpose of this campaign is to raise funds to finance development and market New Game X in order to scale our unique solution. In the bargain we want to create as much shareholder value as we can, so that the team and our investors can some day enjoy a major exit, via sale of the company or IPO.
That's what we're about and that's why we are running this campaign here on StartEngine. We hope you decide to join us. If you already have, thank you!
Tomorrow my Co-Founder and CTO Eric Malafeew and I head off to San Francisco for the Game Developer Conference (GDC). We'll be showing MotionLabs to various interested parties.
Stay tuned for updates from GDC next week.
Thank you for investing in and supporting our project! We couldn’t do it without you. I hope you enjoy our updates here as we make the exciting next stage of our journey.
All the best,
Eric Janszen
Co-Founder & CEO
Invest within the first two weeks and receive 3% bonus shares.
Members get an extra 10% shares in addition to rewards below!
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.
Super Early Bird Bonus
Invest within the first two weeks and receive 3% bonus shares.
Bronze Tier
Invest $500+ and receive 1% bonus shares.
Silver Tier
Invest $1,000+ and receive 2% bonus shares.
Gold Tier
Invest $2,500+ and receive an exclusive VirZoom hoodie and 3% bonus shares.
Platinum Tier
Invest $5,000+ and receive an exclusive VirZoom hoodie, 5 free copies of VirZoom's next title, early access to VirZooms next title, and 4% bonus shares.
Diamond Tier
Invest $10,000+ and receive an exclusive VirZoom hoodie, 5 free copies of VirZoom's next title, early access to VirZoom's next title, a 30-minute call with CEO/Founder Eric Janszen, and 5% bonus shares.
0/2500
Cancel anytime before 48 hours before a rolling close or the offering end date.
We want you to succeed and get the most out of your money by offering rewards and memberships!
Your info is your info. We take pride in keeping it that way!
Invest in over 200 start-ups and collectibles!
With Regulation A+, a non-accredited investor can only invest a maximum of 10% of their annual income or 10% of their net worth per year, whichever is greater. There are no restrictions for accredited investors.
With Regulation Crowdfunding, non-accredited investors with an annual income or net worth less than $124,000, are limited to invest a maximum of 5% of the greater of those two amounts. For those with an annual income and net worth greater than $124,000, he/she is limited to investing 10% of the greater of the two amounts.
At the close of an offering, all investors whose funds have “cleared” by this time will be included in the disbursement. At this time, each investor will receive an email from StartEngine with their Countersigned Subscription Agreement, which will serve as their proof of purchase moving forward.
Please keep in mind that a company can conduct a series of “closes” or withdrawals of funds throughout the duration of the campaign. If you are included in that withdrawal period, you will be emailed your countersigned subscription agreement and proof of purchase immediately following that withdrawal.
StartEngine assists companies in raising capital, and once the offering is closed, we are no longer involved with whether the company chooses to list shares on a secondary market, or what occurs thereafter. Therefore, StartEngine has no control or insight into your investment after the close of the live offering. In addition, we are not permitted to provide financial advice. You may want to contact a financial professional to discuss possible investment outcomes.
For Regulation Crowdfunding, investors are able to cancel their investment at any point throughout the campaign up until 48 hours before the closing of the offering. Note: If the company does a rolling close, they will post an update to their current investors, giving them the opportunity to cancel during this timeframe. If you do not cancel within this 5-day timeframe, your funds will be invested in the company, and you will no longer be able to cancel the investment. If your funds show as ‘Invested’ on your account dashboard, your investment can no longer be canceled.
For Regulation A+, StartEngine allows for a four-hour cancelation period. Once the four-hour window has passed, it is up to each company to set their own cancelation policy. You may find the company’s cancelation policy in the company’s offering circular.
Once your investment is canceled, there is a 10-day clearing period (from the date your investment was submitted). After your funds have cleared the bank, you will receive your refund within 10 business days.
Refunds that are made through ACH payments can take up to 10 business days to clear. Unfortunately, we are at the mercy of the bank, but we will do everything we can to get you your refund as soon as possible. However, every investment needs to go through the clearing process in order to get sent back to the account associated with the investment.
Both Title III (Regulation Crowdfunding) and Title IV (Reg A+) help entrepreneurs crowdfund capital investments from unaccredited and accredited investors. The differences between these regulations are related to the investor limitations, the differing amounts of money companies are permitted to raise, and differing disclosure and filing requirements. To learn more about Regulation Crowdfunding, click here, and for Regulation A+, click here.
Important Message
IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. INVESTMENTS ON STARTENGINE ARE SPECULATIVE, ILLIQUID, AND INVOLVE A HIGH DEGREE OF RISK, INCLUDING THE POSSIBLE LOSS OF YOUR ENTIRE INVESTMENT.
www.StartEngine.com is a website owned and operated by StartEngine Crowdfunding, Inc. (“StartEngine”), which is neither a registered broker-dealer, investment advisor nor funding portal.
Unless indicated otherwise with respect to a particular issuer, all securities-related activity is conducted by regulated affiliates of StartEngine: StartEngine Capital, LLC, a funding portal registered here with the US Securities and Exchange Commission (SEC) and here as a member of the Financial Industry Regulatory Authority (FINRA), or StartEngine Primary, LLC, a broker-dealer registered with the SEC and FINRA/SIPC . You can review the background of our broker-dealer and our investment professionals on FINRA’s BrokerCheck here. StartEngine Secondary is an alternative trading system regulated by the SEC and operated by StartEngine Primary, LLC, a broker dealer registered with the SEC and FINRA. StartEngine Primary, LLC is a member of SIPC and explanatory brochures are available upon request by contacting SIPC at (202) 371-8300.
Investment opportunities posted and accessible through the site are of three types:
1) Regulation A offerings (JOBS Act Title IV; known as Regulation A+), which are offered to non-accredited and accredited investors alike. These offerings are made through StartEngine Primary, LLC (unless otherwise indicated). 2) Regulation D offerings (Rule 506(c)), which are offered only to accredited investors. These offerings are made through StartEngine Primary, LLC. 3) Regulation Crowdfunding offerings (JOBS Act Title III), which are offered to non-accredited and accredited investors alike. These offerings are made through StartEngine Capital, LLC. Some of these offerings are open to the general public, however there are important differences and risks.
Any securities offered on this website have not been recommended or approved by any federal or state securities commission or regulatory authority. StartEngine and its affiliates do not provide any investment advice or recommendation and do not provide any legal or tax advice with respect to any securities. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. StartEngine does not verify the adequacy, accuracy or completeness of any information. Neither StartEngine nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, or completeness of any information on this site or the use of information on this site. See additional general disclosures here.
By accessing this site and any pages on this site, you agree to be bound by our Terms of use and Privacy Policy, as may be amended from time to time without notice or liability.
Canadian Investors Investment opportunities posted and accessible through the site will not be offered to Canadian resident investors. Potential investors are strongly advised to consult their legal, tax and financial advisors before investing. The securities offered on this site are not offered in jurisdictions where public solicitation for offerings is not permitted; it is solely your responsibility to comply with the laws and regulations of your country of residence.
California Investors Only – Do Not Sell My Personal Information (800-317-2200). StartEngine does not sell personal information. For all customer inquiries, please write to contact@startengine.com.
StartEngine’s Reg A+ offering is made available through StartEngine Crowdfunding, Inc. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information about this offering, please view StartEngine’s offering circular and risk associated with this offering.