We pursued crowdfunding as we see ourselves as a market disruptor and this seemed like the most on-brand option for raising capital. It allows your customers to be your investors and your investors to be your customers, and it obviously brings a marketing boost in terms of added publicity.

The downside, of course, is that if you fail it’s a very public failure. But new market entrants seeking funding always risk private equity punishment on valuation and control of the business, whereas on crowdfunding you will get a more sympathetic valuation. This is because crowdfunding investors don’t need to justify their job in making that call – they’re investing in a story they want to be part of. And by raising capital through crowdfunding, you avoid anybody taking a board seat or a veto right.

The key thing to realise is that just because you take the pitch online, you won’t suddenly be flooded with investments. We had to do a serious amount of work to raise that money – I would say at least 50 per cent of the money raised came from us slogging it out, talking to people and presenting.

You also need a strong web presence. The first thing potential investors do these days is check out your Google reviews, your website, your Twitter account and your communication with your customers. They’ll believe your marketing spiel only so far, then they’ll dig around for themselves – and it’s very easy to do that.

Once you have the investors on-board, communication is absolutely key to a successful relationship. We have a private Facebook group for our investors where we share all the latest 1Rebel news and updates from the press to keep them informed; an angry investor is usually an ill-informed investor.

When scaling a business quickly, first and foremost you need the right team. From day one, our recruiting strategy has been to look only for the best talent. This makes things a lot easier when you’re talking to investors.

For me, it’s always been very important to identify investors who are a perfect match for eGym. It’s not just about the money you raise – it’s also about other factors like the team, existing networks and market knowledge that really make the difference. Given our goal for eGym be a true global player in the fitness industry, our investors have to share this goal. Luckily there has been a strong interest in our business from the very beginning, so we’ve always had a choice of potential investors.

It’s also very important to bring in investors with specialised knowledge and contacts – people who can be your brand ambassadors. Our investors include the likes of Jürgen Gallmann, who – having held top management positions at both IBM and Microsoft Germany – has a lot of credibility when he addresses an audience about the benefits of digitisation for our industry. Another example is Mario Görlach, an industry veteran with unmatched knowledge of gym organisation and holistic training concepts. Gallmann and Görlach, in addition to being investors in eGym, are regular speakers at many of our events.

Private equity firms tend to look for really good management teams with a simple business model that’s well executed. You also need a slick elevator pitch: nobody will invest if you can’t explain to them in a few sentences what your company does, how it makes money and why that’s defensible.

Management teams should look for backers who bring more to the party that just their capital. That added value could be in the shape of strategic insight, operational expertise or the ability to find and execute bolt-on acquisitions.

Successful PE investments depend on frank agreement on the few major priorities needed to deliver the business plan. Over a three- to five-year investment, don’t try to do 10 things or you’ll do them all badly. Stick to two or three and have an unwavering focus on delivering them really well.

Private equity firms need to get a return on their investors’ money, so if they start talking about how to exit the investment soon after they’ve entered, get over it!

Last piece of advice? Find people you like and respect. Chances are, if they also like and respect you, it’ll be easier to deal with the inevitable bumps along the way.

We’re a little unique in the venture space because of our operating background, so if we don’t feel our experience adds value or don’t feel we have a unique view on a situation, we’ll politely pass.

Once we cross that hurdle, we ask two really important questions: firstly, does this format actually get clients better results over a long-term horizon than other platforms; and secondly, is there proof – in length of engagement or weekly returns data – that the format is sticky enough to see any given client coming back for 12+ months?

After we’re comfortable with that, we start with a fairly standard checklist of questions. Is the format floorplan-efficient without being a commodity? What does the competitive environment in the format look like today – and what do we think will it look like in five years’ time? Are there barriers to entry that should protect pricing as more capacity comes to market? Is the company/instructor the best in the market at what they do, and can that skill be taught in a way that allows the business to scale beyond just a couple of studios?

Once that’s covered off, we spend time getting to know the business owners better and, if we feel there’s a great fit between what they’re looking to do and what we can help with, we’ll look to get involved.

Finding a partner who shares both your vision and values is the most important thing. Our collaboration with North Castle Partners was a natural fit, not only due to its extensive experience with fitness operators, but also because it possesses a deep understanding and appreciation of the Barry’s Bootcamp DNA.  

For me as CEO, a big part of my role is acting as a cultural compass, making sure my employees and customers feel that, as Barry’s Bootcamp is scaling up, it retains the sense of close-knit community that we’ve worked so hard to build and preserve.

It’s vital to remember that the fitness industry is a people-driven industry, and there have been moments where I’ve said: “I don’t always make decisions based on the bottom line – I make decisions based on the culture, how it’s going to affect my employees and my consumers.” North Castle Partners understand that.

You want to find an investor who can provide you with the tools to make data-driven decisions, lend expertise on markets, and help you to successfully scale your business while still maintaining the integrity of your brand.