Fitness Startups Win Over Investors With AI and Data, Not Hardware

Investment in fitness and wellness startups totaled over $3.6 billion in the first half of 2026, putting the year on track to be roughly a third higher than 2025, which was the lowest year for wellness startup funding in at least six years. Major raises this year include wearable health tracker WHOOP's $575 million Series G, Devoted Health's $366 million Series F, and Eight Sleep's $50 million Series D. The investment landscape has shifted dramatically. Hardware-focused startups like Tonal and Hydrow, which raised hundreds of millions during the pandemic, have not secured new funding in over three years. Investors are now gravitating toward companies that continuously collect health data and use AI to deliver personalized wellness and fitness guidance. This represents a fundamental change in how the industry approaches growth and innovation.