EscapeSquid Seeks $2.5M To Link Virtual Fitness With Travel

A Delaware startup is looking to raise $2.5 million in seed funding to expand a platform that ties at-home stationary cycling to real-world travel and local business partnerships. Xanh Entertainment Inc., the company behind EscapeSquid, announced the funding push on Sept. 11, framing it as the next step in scaling a model that moves participants from virtual rides to studio classes, local events and eventually destination trips.

According to the company, EscapeSquid is built around a progression that starts with on-demand virtual cycling sessions on compatible stationary bikes, then extends into in-person fitness studio classes, regional events and travel experiences tied to specific destinations. John Phung, founder and chief executive officer of Xanh Entertainment, said the proposed capital is intended to fund the technology and partnership infrastructure needed to connect those stages into a single network spanning fitness, hospitality and travel.

Xanh Entertainment plans to use the seed money to expand its underlying technology, recruit fitness studios and instructors, build relationships with hotels, restaurants, attractions and tour operators, and stage in-person events in a first wave of U.S. markets. Those markets are expected to include Nashville, Portland, Anaheim, Dallas, Philadelphia, Chicago and New York City. As part of the rollout, the company said it intends to host kickoff dinners and evening fitness gatherings in select cities, with specific dates to be announced later in 2026. The company has described the structure as a five-step pipeline running from virtual participation to studio classes, local experiences, regional events and, ultimately, destination travel.

The announcement lands amid continued interest from investors and consumers in fitness technology that blends digital engagement with physical, in-person experiences. Connected-fitness equipment makers popularized subscription-based virtual classes over the past several years, and many operators have since looked for ways to extend that engagement beyond the living room, whether through branded retail pop-ups, group meetups or travel packages. Wellness tourism, which includes trips built around fitness, spa and outdoor activity, has also grown as travelers increasingly seek itineraries centered on health rather than sightseeing alone.

For early-stage companies in this space, seed funding rounds typically serve to prove out a business model before larger institutional investors commit capital. A $2.5 million raise is modest by the standards of venture-backed fitness technology firms, some of which have raised hundreds of millions of dollars, but it can be sufficient to fund pilot markets, build partnership agreements and test whether local businesses see enough value to participate. Success in a handful of cities is often used as a template for a broader national rollout, particularly for platforms that depend on local partners such as gyms, restaurants and hotels rather than solely on direct-to-consumer subscriptions.

The company noted that its planned seed round has not closed and that any securities offering would be made only to eligible investors under applicable securities laws, with the announcement intended for informational purposes rather than as a solicitation. EscapeSquid said further details on its city-based events, along with updates on partnership announcements, are expected later this year as the fundraising effort progresses.

This report is based on information from a press release distributed via PR Newswire, available here.