Calm has successfully raised significant funding over multiple rounds, establishing itself as a key player in the wellness app market. The platform offers a range of features designed to help users manage stress, improve sleep, and enhance overall well-being.
Keep reading to explore the intricacies of Calm's fundraising journey and the investors backing this innovative platform.
What Is Calm?
Calm is a mental health app designed to help users manage stress, sleep better, and live a happier, healthier life. The app offers research-based tools to build life-changing habits that support mental health.
Founded in 2012 by Michael Acton Smith and Alex Tew, Calm provides a variety of features including guided meditations, Sleep Stories®, music tracks for focus and relaxation, and breathing exercises.
Based in San Francisco, the company has grown significantly, employing over 100 people dedicated to improving mental wellness worldwide.
How Much Funding Has Calm Raised?
- Series B
- Amount Raised: $88,000,000
- Date: February 2019
- Lead Investors: TPG Growth, Insight Venture Partners, Ashton Kutcher’s Sound Ventures, Creative Artists Agency (CAA)
- Valuation at Round: $1B
- Motivation Behind the Round: To accelerate Calm's mission to make the world healthier and happier, focusing on international growth and increased investment in content.
- Series A
- Amount Raised: $27,000,000
- Date: June 2018
- Lead Investors: Insight Venture Partners, Ashton Kutcher’s Sound Ventures, Harry Styles
- Valuation at Round: $250M
- Motivation Behind the Round: To double down on global growth and build one of the most valuable and meaningful brands in the world.
- Seed Round
- Amount Raised: $578,000
- Date: June 2014
- Lead Investors: Jason Calacanis's Launch fund, AngelList syndicate, Matt Mullenweg, Matt Cheng
- Motivation Behind the Round: To expand the team with more engineers and widen the content selection, exploring new self-help topics and establishing Calm as a lifestyle brand.
- Seed Round
- Amount Raised: $415,000
- Date: February 2013
- Lead Investors: Michael Birch, Joe Greenstein, Andy McLoughlin, Tabreez Verjee, Oleg Tscheltzoff, Kirill Makharinsky, Jeff Cantalupo, Darius Contractor, Darran Garnham, Steve Pankhurst, Sokratis Papafloratos, Saki Georgiadis
- Motivation Behind the Round: To support the transition from a simple website to a comprehensive business with a mobile app aimed at teaching relaxation techniques.
Total Amount Raised: $116,993,000. Current Valuation: $1B.
Key Investors
- TPG Growth
- Details: TPG Growth is a global private equity firm that focuses on growth equity and middle-market buyout opportunities. It is part of TPG, a leading global alternative asset firm.
- Investment Focus Areas: Technology, healthcare, consumer products
- Notable Investments: Airbnb, Uber, Spotify
- Insight Venture Partners
- Details: Insight Venture Partners is a leading global private equity and venture capital firm. It specializes in growth-stage software and internet businesses.
- Investment Focus Areas: Technology, software, internet businesses
- Notable Investments: Twitter, Shopify, DocuSign
- Ashton Kutcher’s Sound Ventures
- Details: Sound Ventures is a venture capital firm co-founded by actor Ashton Kutcher and Guy Oseary. The firm focuses on early to growth-stage investments.
- Investment Focus Areas: Technology startups, consumer internet, media, entertainment
- Notable Investments: Airbnb, Uber, Spotify
- Creative Artists Agency (CAA)
- Details: CAA is a talent and sports agency that also invests in media, entertainment, and technology companies. It represents many of the most influential professionals in the entertainment industry.
- Investment Focus Areas: Media, entertainment, technology companies
- Notable Investments: Patreon, Fullscreen, WhoSay
- Harry Styles
- Details: Harry Styles is a former One Direction singer and solo artist. He has shown interest in wellness and technology through his investment in Calm.
- Investment Focus Areas: Wellness, technology
- Notable Investments: The article does not mention other notable investments by Harry Styles.
What's Next for Calm?
Calm's future is brimming with opportunities, particularly in international growth and content expansion. The wellness industry, valued at several trillion dollars, offers a vast market for Calm to tap into. Partnerships with major companies like American Airlines and Uber further amplify its reach, positioning Calm to become a global leader in mental wellness.
Given its strong growth and profitability, Calm is well-poised for future fundraising rounds. These funds could support further international expansion and the development of new content areas. The increasing interest in mental health apps makes Calm an attractive prospect for venture capitalists.
However, challenges lie ahead. Competition from other well-funded apps like Headspace and Simple Habit is fierce. Maintaining profitability while scaling operations and continuously innovating to retain users will be crucial. Despite these hurdles, Calm's strategic vision and market position suggest a promising path forward.
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