Motivational startup Pact has closed $1.55 million in a funding round led by Max Levchin and Khosla Ventures. The firm's mobile apps help people meet their health goals by putting money on the line, according to AllThingsD.
Pact is currently known as GymPact. The firm had initially focused on workouts. Using the company's app, users pledge to pay a minimum of $5 if they fail to complete a committed workout. Those who do complete their commitment get cash rewards from the pooled-in money from the flakers. This usually ranges from $0.30 to $0.50 per workout. Pact validates workouts and food challenges through a phone tracker, the report explained.
Now, Pact wants to apply the same principle to diet. The company will launch a new version of the app under its new brand name on January 1, the report stated.
In an interview today, Pact co-founder Yifan Zhang said, "The very special thing about Pact is that our financial incentives are very motivating. We are 92 percent effective at getting people to hit their commitment. The average user stays with a pact for six months."
The motivational firm has raised $2.4 million from two seed rounds. Pact's 14-member staff is currently based in San Francisco. The company takes a $0.50 fee for every cash transaction, AllThingsD reported.
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