Toronto-based wellness company Othership has raised $11.3 million as it rapidly expands its luxury immersive sauna and ice bath social experience in the United States. 

Othership raised the money through a Simple Agreement for Future Equity (SAFE). Filings show 57 unique participants in Ontario, Quebec, the U.S., Mexico, Puerto Rico, Switzerland and the Cayman Islands in the financing, which was distributed on May 31. U.S.-based investors accounted for the bulk of it, with 43 contributing $7.1 million. 

The capital raise is an intermediate step as Othership, which offers breathwork, sauna and other wellness experiences, looks to raise a Series B, according to Gurdeep Prewal, co-founder of Rocana Ventures—which participated in the raise. Othership is using the funds to expand its presence in New York, where it currently has one location and plans to open others in the future. The company has its sights on expanding throughout the entire country, Prewal said.

“We’re incredibly proud of what we’re building with Othership: creating spaces that support emotional wellness, community connection, and transformation,” co-founder Robbie Bent wrote in a statement to The Logic. “This recent raise will be used to expand our presence in New York—we’ll be opening the doors to our second NYC location in Williamsburg this summer.”

A SAFE contract, often used in early-stage funding, provides Othership with immediate capital and investors the opportunity to receive equity at a discount in an official round or when triggered by specific events, like the sale of the company. The financing comes after Othership closed its US$8 million Series A in January 2023, led by New York-headquartered Vine Ventures, with participation from Rocana Ventures, 5D World, Arben Ventures, DML Group, AG Ventures and Ambush Capital, according to PitchBook. Prior to that, it closed a US$1.3 million seed round a month after opening. Notable backers include pop singer Shawn Mendes and SoulCycle co-founder Elizabeth Cutler. 

The fundraising environment over the past few years has been challenging for many startups, but Othership’s rounds have been oversubscribed so far, Prewal said. “Money flocks to the highest quality opportunities in this type of market that we’re in, and certainly Othership’s not had any challenges getting over the line with their fundraising,” he said.

Othership started in 2019 as a miniature spa in co-founder Robbie Bent’s garage. It later evolved to a breathwork app during the pandemic, and since 2022, has operated as a full communal cold-plunge and sauna experience. It bills itself as a place to de-stress without alcohol, phones, and offers sessions that deliver the benefits of self-care and socialization.

The digitization of our society is actually separating us, and “there’s a lack of direct social engagement in spaces like we used to have,” said Prewal, who saw Othership as an opportunity to invest in a new third space as young adults turn away from alcohol. “Many of the younger demographic are searching for ways to connect with community in spaces that are more in line with their values.”