Investing & Startups| February 27, 2020
Meditation App Headspace Raised $93 Million to Keep Expanding
The round was led by blisce, with participation from Waverley Capital and Times Bridge – the global investments and partnerships arm of The Times Group of India – along with existing investors: The Chernin Group, Spectrum Equity and Advancit Capital. The new funding includes $53 million of equity from participating investors as well as $40 million of debt capital from Pacific Western Bank.
Headspace – “the clear leader in mindfulness and meditation”, investors say
The new investors are quite happy to take part in this endeavor. Alexandre Mars, entrepreneur and philanthropist, Founding Partner of blisce said that “Headspace’s mission to make health and happiness more accessible to people around the world resonates deeply with blisce’s core belief that it is possible to both ‘Do Good’ while also building a strong business with sustainable growth”. He added that blisce is “proud to partner with Rich, Andy and the entire Headspace team in their commitment to transforming the mindfulness and meditation space through scientific research and authentic expertise, and are excited to support the impact they’re making on mental health, not only through the consumer app, but through their efforts across healthcare, digital medicine, science and the workplace.”
Rishi Jaitly, CEO of Times Bridge, was also excited about the new opportunity to collaborate, and said, “Headspace is the clear leader in mindfulness and meditation, and its rapid growth and international expansion is a testament to the company’s authenticity, influence and impact, particularly when it comes to the scientific work that has been an integral part of the business since the company’s inception. Headspace co-founder Andy Puddicombe began his mindfulness journey as a monk in India, and we’re excited to bring things full circle through this strategic partnership. We look forward to supporting the company as it enters one of the fastest growing health and wellness markets in the world.”
Science-backed digital mindfulness product
Since its launch, Headspace has been the most science-backed digital mindfulness product in the market. The company continues to lead the industry in efforts to scientifically validate the benefits of mindfulness and meditation, with one of the largest research pipelines of any digital health and wellness company, including over 70 clinical research studies conducted with academic partners – including Carnegie Mellon, University of California San Francisco, and Stanford University.
Headspace is not the first company to focus on finding innovative solutions for encouraging people to lead a healthier life, both physically and mentally.
Apple, for instance, filed patents to install smart technology into clothing as part of a new venture to hit the healthcare industry. Plans for the clothing aim to track heart rate, blood pressure, blood sugar levels, electrocardiograms, blood oxygen levels, and respiration rates.
It is also expected that the band will be able to track fitness-based metrics, such as the wearer’s daily step count and exercise levels to help encourage healthy living.
When it comes to mental wellbeing, Meru Health is a quickly accessible digital clinic for greater mental health with remote therapists and psychiatrists, an anonymous peer-group and a 12-week digital therapeutic treatment program. Meru’s program consists of continuous remote clinician support, at-home therapeutic lessons and practices (e.g., cognitive behavioral therapy and mindfulness) as well as sleep medicine and nutritional psychiatry for a complete solution to healing depression and anxiety.
Headspace helps people fight stress, anxiety and other issues
Headspace’s product helps “users apply mindfulness to promote health outcomes and supports its members through content tailored around stress, anxiety, sleep and focus, among other key need states. Over the past nine years, Headspace has experienced explosive growth, including:
- 62+ million downloads in 190 countries
- 2+ million paid subscribers
- More than 600 corporate customers through Headspace for Work, including Starbucks, Adobe, Hyatt and GE
- Headspace currently works with 15% of Fortune 100 and 20% of Fortune 50 companies, and partners with two of the top three conglomerates and two of the top three technology companies within those categories
“Headspace has shown millions of people the power of using mindfulness to mitigate stress, anxiety, and other everyday issues, while continuing to advance the field through clinically-validated research,” said Richard Pierson, CEO and Co-Founder of Headspace.
“As we think about the next ten years and beyond, we are focused on harnessing this power and applying it to other areas of our members’ lives to help them create healthy routines that last a lifetime – whether that is through our Headspace consumer app, the work we currently do with hundreds of employers, or with healthcare providers as we look to deliver better access. We are excited to work with leading global investors who share our vision to improve the health and happiness of the world.”
Intentions for the future include further expansion and increasing revenues
Besides growing its direct-to-consumer business, Headspace will keep on investing in Headspace for Work, its rapidly expanding B2B segment. This sector has doubled its revenue year over year since 2017 and is expected to continue the trend. The company will also continue to invest in Headspace Health, its revolutionary endeavor to integrate mindfulness into healthcare.
Headspace will use the new funds to continue to accelerate its growth momentum, focusing on international expansion. In 2019, the company launched localized versions of the app in French and German, and appointed former Apple executive Renate Nyborg as Head of Europe to lead expansion in the region. Headspace also launched Latin American Spanish and Brazilian Portuguese, and continues its expansion in Asia through strategic relationships with partners such as The Times of India, one of the biggest media companies in that region.
Headspace was created to improve the health and happiness of the world. With over 62 million users in 190 countries, Headspace was one of the first meditation apps in the world and still remains a leader in mindfulness and mental training. Headspace is committed to advancing the field of mindfulness through clinically-validated research, having one of the largest research pipelines of any digital health and wellness company. Headspace operates a B2B business (Headspace for Work) to offer its mindfulness products and services to more than 600 companies. Headspace also partners with brands like Nike, NBA, and the U.S. Women’s National Soccer Team to offer sport and movement content. In 2018, Headspace launched Headspace Health, a digital health subsidiary focused on finding new ways to incorporate the Headspace mindfulness experience into digital medicine.