Avrum Elmakis might have 99 problems, but a lack of investors ain’t one. The founder and CEO of CLMBR, a Denver-based startup making an 8-foot-tall vertical climbing machine, closed last month on a $13.5 million funding round involving 29 investors — including celebrities like Jay-Z, Pitbull, Ryan Seacrest and Novak Djokovic.
The Empire State of Mind rapper was one among the 29 investors to invest in the workout system, which uses both the upper and lower body for a high-intensity cardio workout combined with resistance training.
Avrum Elmakis, CLMBR's CEO, has founded and sold a series of lucrative businesses. He is also notably the owner of Rise Nation, a chain of climbing studios in Colorado, as well as being the chairman of the board of TDBBS - Top Dog Best Bully Sticks - a natural dog chews and treats business.
TDBBS, has, among Elmakis fruitful projects, quickly triumphed within the pet industry since its release. However, the CEO who charmed celebrities with his innovative businesses has particularly broken through the wellness industry, as he managed to raise $1.3 million last year, before selling 600 machines through a crowdfunding campaign on Indiegogo.
The company has since reportedly sold several thousand additional units.
Elmakis, who also serves on the boards of Boys and Girls Club of Metro Denver, Lumena Labs and the James Madison University Entrepreneurship Council explained that at-home fitnesses are an emerging trend in the US.
He told Business Den: "From an athlete’s perspective, climbing on a CLMBR is more efficient because it takes less time to burn calories, safer because it’s in an aligned up-right position, and it takes up very little room.”
The health-concerned entrepreneur has planned to use the $13.million from his A-list celeb investors to double his staff of 30 by the end of the year.
Elmakis will also invest in inventory and technology and open a new Denver headquarters.
CLMBR has been operating out of 8,000 square feet Since February, in the ANB Bank building at 3033 E. 1st Ave. in Cherry Creek.
Elmakis revealed that the significant investment he received was a unique experience "considering the levels of folks that participated.
He said: “Professional athletes and entertainers are typically paid by companies to endorse a product.
"So, in my opinion, it’s rare to see them personally investing."
The cardio-machine features a library of on-demand, instructor-led classes and climbing challenges that are subscription based. Additionally, CLMBR is being sold to both consumers, as well as commercial gyms.
Source: Business Den, 5280, Biz Journals