Fritz Lanman: CEO of ClassPass and Mindbody

Last month we had the opportunity to sit down with industry titan and ClassPass CEO, Fritz Lanman on our Gildre Spotlight Podcast. Fritz shared deep insights from his upbringing and how his career at Microsoft and building startups led him along the path to helping ClassPass reach unicorn status with a $285M Series E raise in 2020. Below are excerpts from the full episode which you can view here.

Fritz’s Introduction

I'll never forget the men and women who shaped my journey from a curious Bay Area kid to a tech executive, investor, and entrepreneur. Their influence began shaping my path long before I understood the world of startups, investment, and innovation that I would eventually dive into.

The Bedrock of Adobe: Remembering John Warnock

Recently, the tech world bid farewell to an influential pioneer, John Warnock, the beloved founder of Adobe. His passing is not only a great loss to the industry but also to me personally - as he is closely intertwined with my beginnings and life's journey.

As a child, I was fortunate to have been exposed to computers at an early age, thanks in part to John Warnock's mentorship. John, a close family friend and my brother's godfather, was one of the main reasons I was introduced to the world of computers. He built Adobe from the ground up after his time at Xerox PARC, and I was lucky to witness some of Adobe’s early days through the lens of a family connection. His entrepreneurial spirit was infectious and left a lasting impression on me. Adobe was founded on innovation and creativity, values that I have carried with me throughout my career.

Childhood Dreams and Family Dynamics

Growing up in the Bay Area as a kid, I was swept up in the world of sports with Michael Jordan and the Chicago Bulls capturing my imagination. I was also an avid Golden State Warriors fan—through the highs and lows, from the era of Tim Hardaway and Chris Mullin to Latrell Sprewell and Chris Webber.

Amidst my sports fandom, my parents were raising us in distinct pairings, plus "the baby" who, they claim, wasn't an accident. There was me and my brother James, two peas in a pod, born while my dad was still grinding away as a medical resident with not much to spare in the bank.

Tech, Sports, and Sibling Bonds in the Silicon Valley

Tech was not just a fascination; it was a part of my upbringing. With close family connections to Silicon Valley pioneers and a proximity to groundbreaking companies like Apple, I got hands-on with technology years before it became ubiquitous in homes and classrooms.

My siblings did manage to outshine me in some areas, including sports. But it was more about support than competition. Yes, even as adults, we might have a friendly rivalry reminiscing over who was the better baseball player or engage in some pickup basketball—but at the end of the day, it's all love.

An Unexpected Detour: From Yale's Court to the Classroom

My journey took me to Yale with dreams of playing D1 basketball, but those aspirations took a different turn. Injuries and a change in coaching staff led me to redefine my college experience. Instead of aiming for the NBA, which isn’t the typical path for Ivy Leaguers, I decided to immerse myself in Yale’s world-class history department and ultimately study abroad in Italy, expanding my horizons and cultivating a passion for languages and global culture.

"Yale was less about sports and more about seizing other opportunities—it was about taking that rich educational environment and using it to meet incredible people and learn from them."

Lessons From Microsoft, Investing a Quarter Billion into Facebook

Post-college, job searches brought me face-to-face with a tough economy, but Microsoft opened its doors for me. Microsoft came to Yale to recruit and I found my first opportunity there. The inaugural class of their product management program was a game-changer, providing training at Kellogg and an unmatched network of colleagues who have since become prominent figures in tech.

My claim to fame might be convincing leadership to invest a quarter billion into Facebook, but that success was part luck, part the skills I honed in the program, and part sheer determination.

Reflecting on the decision to invest in Facebook, it's clear that while confidence played a role, thorough research and analysis were paramount. As one of the youngest directors at Microsoft, I had a unique advantage—an intimate understanding of social dynamics, particularly among young people.

My observation of Facebook's expansion from colleges to high schools, coupled with a deep dive into the platform's infrastructure and competitors, informed my assessment. MySpace's downfall highlighted the importance of robust engineering, and Facebook's superior tech infrastructure was a significant factor in its success.

Despite uncertainties, I presented three potential scenarios to my colleagues, outlining the varying degrees of success Facebook could achieve. By assigning probabilities to each scenario, we could justify a significant investment, recognizing the platform's potential to become a hundred billion-dollar company.

Moreover, the strategic implications of the investment were significant. Bringing Facebook into the Microsoft ecosystem forged a valuable partnership, akin to what Satya Nadella later accomplished with OpenAI. It was a convergence of strategic, financial, and instinctual factors that led to the investment decision.

While I couldn't compete with seasoned engineers like Ray Ozzie or Bill Gates on technical arguments, my understanding of social dynamics proved invaluable. As a young professional, I could articulate what Facebook meant for a demographic beyond the typical corporate executive—an insight that was instrumental in shaping our investment strategy.

London Calling: Corporate Strategy and The Power of Networks

The stint at Microsoft translated into an opportunity to move to London, where I helped lead strategic teams and navigate the company through emerging technological landscapes. It was more than just work; London became a gateway to the world for me, an extension of my earlier study abroad experience but with the means to truly explore.

Living in London opened my eyes to its true essence. Beyond the tourist traps, there were vibrant neighborhoods and hidden gems waiting to be explored. It's like discovering the real heart of a place, the parts that tourists rarely see. And it was in London that I forged friendships that have stood the test of time.

Some of my former colleagues from London have become integral parts of my professional journey. From my boss who now oversees international operations at MINDBODY and ClassPass, to my CFO and CMO, relationships formed in London have transcended borders and careers.

Living abroad also taught me the value of taking a gap year, a concept that seems to be more embraced in the UK than in the US. The idea of taking time off to explore, learn, and grow before diving into the next phase of life is something I wholeheartedly endorse. It's a chance to gain perspective, experience new cultures, and mature in ways that traditional education and work often can't offer.

And let's not forget the perks of living in London—the accessibility to Europe was a game-changer. Weekend trips to Paris, Italy, Spain, and beyond became the norm. But it wasn't just Europe that I explored; my job at Microsoft afforded me opportunities to travel the world, from rugby sevens in Hong Kong to evaluating assets in Japan and China.

Looking back, my twenties were indeed a gift. It was a time of exploration, growth, and adventure. And while I may have been "study abroad with money," every experience enriched my life in ways I couldn't have imagined.

So, to anyone contemplating a gap year or dreaming of living abroad—do it. Embrace the unknown, seize every opportunity, and savor the journey. After all, life is meant to be lived to the fullest, and my twenties were just the beginning of an incredible adventure.

The Angel Investor Emerges: From Tech Exec to Startup Enthusiast

My transition from a corporate strategy role at Microsoft to becoming an angel investor was anything but planned. It all started with what I can only describe as a series of fortunate accidents, each leading me further down the path of entrepreneurship and investment.

As the youngest executive at Microsoft, I found myself running a corporate strategy team. Little did I know that a pivotal moment would come with the Facebook investment. Suddenly, Silicon Valley took notice, recognizing my ability to close deals. VCs and entrepreneurs alike sought meetings with me, sparking discussions about potential collaborations or acquisitions with Microsoft.

Before I knew it, I found myself unintentionally thrust into the world of angel investing. It all began with an invitation to a baseball game from a group led by the legendary Ron Conway of SV Angel. Sitting down with Jack Dorsey, fresh from his departure from Twitter, I was intrigued by his vision for a new payment platform. And just like that, I made my first angel investment in Square.

With the blessings of my boss at Microsoft, I dove headfirst into the world of startups and investments. From Square to Pinterest to Wish, each deal seemed to reinforce my confidence in my abilities. But it wasn't just about the financial gains; it was witnessing the impact these entrepreneurs were making on the world that fueled my desire to become one of them.

Angel investing became more than just a side hustle—it became a catalyst for change in my career trajectory. I realized that I didn't want to be confined to the corporate world; I wanted to be in the trenches, building something from scratch.

So, with the support of my colleagues and mentors, I took the leap. I left Microsoft to pursue my entrepreneurial aspirations, armed with the knowledge and experience gained from my time in corporate strategy and angel investing.

And then came the call from one of my most trusted mentors, Hank Vi Hill. Together, we embarked on a new journey, founding a venture capital firm and making investments that would shape the tech landscape for years to come.

Looking back, it's clear that my journey from Microsoft exec to angel investor to entrepreneur was anything but conventional. But sometimes, the best paths are the ones we stumble upon by accident. And as I continue to navigate the ever-evolving world of startups and investments, I'm grateful for every twist and turn that brought me to where I am today.

Choosing to leave the stability of Microsoft was a bold move, but it allowed me to pursue my entrepreneurial spirit, starting my own business and co-founding an investment firm.

“Be so good they can’t ignore you” – not just advice from Steve Martin, but a lived philosophy for success and impact.

The Evolution from Executive to Investor to the CEO of ClassPass

I've had quite the unconventional journey in my career. It's not every day you hear of someone going from a high-ranking position at Microsoft to becoming an angel investor and then diving headfirst into entrepreneurship, all before hitting 30. But that's been my path, and it's been one heck of a ride.

I left Microsoft when I was still in my late twenties, driven by a desire to build something from the ground up. I knew the allure of becoming a professional venture capitalist, the money, the lifestyle—it's easy to get comfortable in that world. But I also saw the sacrifices that came with it, the constant travel, the time away from family. I didn't want to find myself in a position where I had to start over just when my personal life demanded stability.

So, I took a leap of faith. I ventured into angel investing, partnering with someone who shared my vision and had the capital to back it up. It was a chance to have the best of both worlds—to learn the ropes of startups while still having the financial security to support my family.

The journey wasn't without its ups and downs. I tasted success with ventures like Live Star, which we sold to Pinterest, but I also experienced setbacks, like with Doppler, a hardware venture that didn't quite take off as expected.

Then there was ClassPass, a project I initially got involved with as an advisor. Little did I know that a phone call from my partner would change everything. Suddenly, I found myself stepping into the role of CEO, tasked with navigating the company through challenging times. It was supposed to be a temporary gig, just for a year, but here I am, almost a decade later, still at the helm.

“I’ve had an unusual path where I was a Microsoft exec became an angel investor and then became an entrepreneur. But in quite rapid succession.. I was 28 or 29 when I left Microsoft and I just wanted to build and I knew if I became a professional VC and thats all I did.. you build a lifestyle around that… then you’re stuck.”

Being the CEO of ClassPass

ClassPass was actually the result of two or three pivots and multiple years of experimentation by Payal and her partners, and when I got involved, it was still called Classtivity, its predecessor. Initially, it operated as a listing site for various classes. However, Payal recognized that the real genius lay in the class-pass model, which eliminated the friction of attending different studios with excess capacity.

In the beginning, we envisioned ClassPass as primarily a lead generation business, where people could try various studios before committing. While that aspect remains part of ClassPass, we discovered that many users preferred maintaining a permanent multis studio or multi-gym membership.

Personally, as someone who struggled with maintaining fitness and had fallen out of shape, traditional gyms didn't appeal to me. The monotony of running on a treadmill or lifting weights without accountability wasn't motivating. I craved the team dynamic, the instructor's guidance, the energizing music—a complete experience that made working out enjoyable or at least bearable.

To me, group fitness offered the closest experience to team sports, fostering camaraderie and motivation. It was this belief that fueled my enthusiasm for ClassPass. I saw firsthand the transformative power of group fitness—I lost 70 pounds using the product.

The emergence of trends like CrossFit and SoulCycle affirmed my bullish outlook on health and wellness as a macro theme. I believe it will continue to shape lifestyles for decades to come. With the fitness industry being highly fragmented, ClassPass's role as an aggregator made perfect sense. It tapped into the excess capacity of studios while offering users a convenient and varied fitness experience.

In essence, ClassPass wasn't just a business venture—it was a reflection of my belief in the transformative potential of group fitness and the broader trend towards prioritizing health and wellness in society.

Moving to Montana and and taking ClassPass to Unicorn Status

After taking the helm at ClassPass, I saw the need for a change in the business model. We shifted to a recurring subscription model, implementing a credit system where users could spend points each month—a strategy that proved highly effective. As we scaled the business, expanding to nearly 30 countries and thousands of cities worldwide, profitability became a growing concern.

My board member, Bob Mylo, a seasoned executive with a wealth of experience in the travel industry, urged me to consider relocating the company to a more cost-effective location. While Detroit was suggested, I saw an opportunity closer to my heart: the Rockies. Having spent summers as a fly-fishing and rafting guide during college, the idea of setting up shop in a region synonymous with outdoor adventure appealed to me.

The prospect of offering employees the flexibility to live and work in New York, the Bay Area, or the Rockies was groundbreaking, especially before remote work became commonplace. Colorado was quickly ruled out due to its popularity and high costs, leading me to explore Montana, specifically Missoula.

Missoula offered the perfect blend of affordability, outdoor recreation, and a vibrant community—reminiscent of what Boulder was like decades ago. It wasn't long before we established an office there, initially for sales and customer experience roles. However, with the relocation of key executives and the hiring of local talent, Missoula soon became our largest office and headquarters.

The pandemic further solidified our commitment to remote work, and with our distributed team, location became less of a barrier. Eventually, ClassPass merged with Mindbody, another distributed company with offices in San Luis Obispo, New York, Scottsdale, and Atlanta.

Building a company from Missoula has been a rewarding journey. It's a testament to the power of innovation, adaptability, and the potential for growth beyond traditional tech hubs. And as we continue to thrive in this remote-friendly landscape, I'm grateful for the opportunity to contribute to the vibrant community of Missoula while making a global impact with ClassPass.

The Takeaway: Lessons for Aspiring Entrepreneurs

Reflecting on my path, it seems so varied and yet so interconnected. From early days in the Bay Area, infused with the ethos of innovation, to the hallowed halls of Yale and beyond, it's clear that adaptability, curiosity, and a willingness to learn have been the constants. From a senior role at a major corporation to discovering the thrill of angel investing, then diving headfirst into entrepreneurship—all within a whirlwind of rapid changes.

As I reflect on my journey as an entrepreneur, there are a few pieces of advice and reflections I'd like to share. Firstly, building a company is incredibly challenging, and I often advise aspiring entrepreneurs against it unless they absolutely can't resist the urge to create. It takes a level of determination and passion that few can comprehend until they're knee-deep in the process.

Secondly, luck plays a significant role in success. While hard work, intelligence, and a great idea are crucial, there are many variables beyond our control. Recognizing this can alleviate some of the pressure and self-doubt when things don't go as planned.

And thirdly, give yourself a break. It's easy to be hard on yourself when faced with setbacks or failures, but it's essential to remember that nobody has all the answers, and perfection is an impossible standard.

As for work-life balance, it's a constant struggle. I've had to make tough choices and sacrifices along the way, prioritizing my job and family over other aspects of my life. While it's not perfect, I try to make time for the things that matter most to me—daily workouts, outdoor adventures with my family, and quality time with friends.

In the end, being an entrepreneur means embracing the chaos and finding fulfillment in the journey, even amidst the sacrifices. And as I continue to navigate the ever-changing landscape of startups and investments, I'll always strive to maintain a sense of balance and perspective, knowing that success isn't measured solely by business achievements but also by the richness of life experiences and relationships.

Living through the digital revolution in Silicon Valley, witnessing Adobe's rise, surviving the quirks of growing up in a large family, playing sports, studying at Yale, working at Microsoft, and ultimately, shaping the tech landscape as an angel investor and entrepreneur—this journey is a testament to embracing life's unexpected turns, risks, and opportunities.

As one journeys through the world of technology, the people met, experiences gathered, and the cultures embraced all coalesce to form a narrative that's about much more than just business—it's about life lived adventurously, with purpose and passion. And in doing so, one can build not just a career, but a legacy that interweaves personal growth with industry advancement, just as John Warnock did with Adobe.

If I could impart another piece of advice, it would be this: Don’t rush through life's transitions. The gap years, the travels, the career shifts—they're not just delays; they're stepping stones to a fulfilling and impactful career.

As you follow along my journey, you'll see that life's trajectory is rarely a straight path—it zigs and zags with the times, but the lessons learned are invaluable.

Stay curious, stay open, and most importantly, give yourself the freedom to explore. You never know where it might lead you.

Meet Fritz Lanman at Gildre.com

Watch the full episode here.

Learn more about ClassPass and Mindbody