How Fitness Brands Should Approach Securing Growth Capital in 2026

Finance executives broke down the rise of alternative financing in fitness and wellness, and what brands should consider when they’re looking to raise funds

There’s more than one way to finance a fitness and wellness business, and which capital source brands should choose must come down to their individual needs and experiences, experts agree.

Taking the stage at the ATN Innovation Summit 2026 in New York City, Kyle Widrick, founding partner of Pari Passu Venture Partners, Jess Yuan, partner at Founders Row and Neha Govindraj, founder and CEO of Bonside, discussed the emerging capital acquisition options in the fitness and wellness industry and what they mean for the sector’s long-term outlook. The conversation was moderated by Brandon Kaplan, the founder of Maxwell.

“The menu has increased,” Yuan said. “You’ve got crowdfunding, revenue-based financing, you can use franchising as a capital strategy, there’s venture-backed debt or operating partnerships. There are so many ways now.”

That variety has “come out of necessity in the last few years, but also just with the industry maturing and people realizing they don’t just want straight equity anymore,” she added.

Govindraj attributed the rise of alternative financing to the changing needs and expectations of modern fitness and wellness businesses. Formats are smaller, margins are higher, buildouts are leaner and capital expenditures are being put to work at a higher frequency. 

“It’s the perfect equation for a different source of capital to come in,” the Bonside founder said. “All of a sudden, you don’t need $20 million up front to launch a fitness concept. You can pull in increments of $250K, $500K and $1 million, and get a lot done with that.” 

However, greater optionality also heightens owner responsibility when it comes to financing options. The panel explained that there’s no right answer for everyone, and options widen as businesses grow.

Govindraj argued that already-established brands looking to scale further should favor equity capital while those operating only a handful of locations would be wiser to maintain control and opt for revenue-based financing. 

The group also explained what it prioritizes before investing in a brand or supporting a deal. Yuan and Govindraj both mentioned unit economics, while Widrick said he takes a second look at what stage the business is in and how much momentum it’s carrying. 

“Sometimes the best product wins, and sometimes the loudest product wins,” the Pari Passu partner said. “Your ability to get out and get awareness on product, especially in this market, is incredibly important.” 

Aside from that, the panelists also explained that owners and operators need to know their business inside and out before pursuing capital acquisition. That includes both the strong and weak points. 

“If I ask you a question about your business, and I know the answer but you don’t, that’s going to be an issue,” Yuan said. “It’s understanding exactly what you need, what the issues are, having all the data and the metrics down cold, and being able to articulate it.”

“Any capital allocator or financial partner is not looking at your business to see all the things that can go right,” Govindraj added. “They’re looking at your business from a risk mitigation standpoint. So, they’re going to immediately find the holes in the business. It’s okay, every business has a hole, but it’s about how you speak to that hole.”

“We can really see the difference between the operators that are highly aware of it and clearly solving for it, versus the folks that have a bit more of a wishful thinking hat on,” she added.

And while much of the conversation continued to focus on how to secure capital, Yuan stressed that raising money or commanding a high valuation isn’t a finish line.

“That’s the starting point, not the win,” she said. “Now, you have to prove that valuation.”

The group wrapped up by sharing the sectors they’re most excited about from a business potential going forward. Widrick mentioned the peptides space, while Yuan spoke about brain health and Govindraj cited tech-enabled services.