At the ATN Innovation Summit 2025, Mahlum and Jordanelle Capital’s Matthew Day discussed how fitness founders can raise capital with confidence and avoid common mistakes
Solidcore founder Anne Mahlum joined Matthew Day, managing partner at private equity firm Jordanelle Capital, for a candid conversation on how to attract the right investors, prepare for scale and structure a deal that works for both sides.
“I didn’t know anything about private equity at the start,” Mahlum told the audience at the ATN Innovation Summit 2025. “But I asked a lot of questions. I reached out to the founders of SoulCycle and got connected to their lawyer, who’s still my lawyer today, and from there it was about showing up prepared.”
That due diligence resulted in one of the most successful fitness stories of all time. Mahlum grew Solidcore from a handful of studios into a national brand with over 140 locations, partnering with Jordanelle Capital to fuel expansion. But as both she and Day emphasized, the path to institutional funding comes with hard choices and long-term obligations for which founders need to be prepared.
Show the Inflection Point
“What we don’t want to hear is, ‘All the money is going into capital,’” said Day, whose firm has invested in many successful boutique fitness concepts. “The key is inflection: show us that this money will drive growth. That you already have the leases signed, the studios planned, and that we’re stepping into a proven engine.”
For Solidcore, that meant demonstrating a clear studio-level margin and operational consistency across different geographic markets.
“When every new location opens and performs like the last, that’s when we know we can scale,” Day said.
He added that the fitness category remains attractive, particularly for concepts that have built strong unit economics and a playbook that can be replicated.
“We saw Pilates as a whitespace,” he said. “There hadn’t been a national player doing reformer Pilates at scale. Solidcore had the opportunity to be that brand.”
What Founders Get Wrong
Mahlum was upfront about the mistakes she’s seen others make, especially when raising money too early or misjudging valuation.
“You see a lot of founders chasing validation through capital,” she said. “But if your valuation is too high and you haven’t proven your economics, it’s going to be hard to create a win for everyone involved.”
Another common error is a failure to understand what investors need in return.
“Private equity is not in this to take risks,” she explained. “They need a preferred return, they need downside protection, and if you’re not hitting your growth plan, you’re probably not getting paid at the next exit.”
That’s why Mahlum insisted on taking $6 million of secondary capital off the table to protect herself while still driving growth.
“If I hadn’t done that, I probably would’ve sold the company for less,” she said. “Because I would’ve been operating out of fear.”
Build the Right Team & Trust Them
Beyond the numbers, investors also want to know the founder isn’t trying to do everything alone.
“They weren’t just meeting with me,” Mahlum said. “They wanted to know who else was on the leadership team, and if I had the right people in the right roles.”
That required letting go and trusting in employees, a common theme during the Innovation Summit.
“You can’t be scheduling staff and running payroll if you’re trying to scale a national brand,” Mahlum said. “Every six months, your job should look different. And if it doesn’t, you’re probably not delegating enough.”
She also emphasized the importance of operational simplicity.
“Don’t bolt on a sauna or juice bar just because you have extra space,” she said. “Investors want consistency: same layout, same experience, same economics, every time.”
Be Ready
For founders eyeing capital, both speakers stressed the importance of readiness, not just in metrics, but in mindset.
“Once you take that money, you’re on the clock,” said Day. “Investors expect you to go. You can’t raise for a short-term fix. You need a three-to-five-year plan.”
“Have your metrics in place, know your unit-level cash flow, and be honest about what you need,” Mahlum added. “And don’t wait until the pitch to get organized; your model should already be working.”
Their final advice was simple, but often overlooked: raise capital from strength, not desperation.
“The best time to raise is when you don’t need it,” said Day. “That’s when you have leverage and options.”
This article is based on a live discussion held during the ATN Innovation Summit 2025, a two-day event dedicated to the future of fitness and wellness. See here for More Innovation Summit coverage.
