What Is Calm?
The startup Calm has developed a meditation app that has seen major popularity. The app offers a variety of features, including meditation and breathing exercises, sleep stories, music and nature sounds, stretching and physical exercises, masterclasses, and meditation guidance for kids as well.
The service is offered to consumers for a $70 annual subscription or $15 a month. Beyond this, Calm’s services are also extended to businesses as a service or benefit for employees. The companies that have used this include well-known names such as Lincoln, Universal Music Group, Kraft Heinz, and GoFundMe. Through Calm for Business, the company serves over 10 million people. For businesses that use the app’s services, Calm sees a 25% adoption rate and a 75% engagement level among those who adopt it.
Calm’s app is also extremely effective. According to a study conducted on Calm subscribers, 84% of users saw mental improvements, 81% reported being less stressed, and 73% experienced higher quality sleep. Its effectiveness for users has in turn led to a major spike in growth.
In February of 2019, Calm had amassed around 40 million total downloads. That number has now doubled with over 100 million downloads at the end of 2020. Perhaps more telling than its impressive numbers is the increase in paying users over the same period. From February of 2019 to now, Calm’s paying user base has increased from 1 million up to 4 million. These sorts of growth numbers have made Calm profitable, exciting many investors looking to put money into a mental health-focused startup.
Calm’s Funding and Valuation
Because of these massive numbers and profitable business model, Calm raised major capital in the startup’s latest funding round. In fact, the company amassed an impressive $75 million during the Series C Funding Round, which in turn, boosted Calm’s valuation up to an incredible $2 billion. The added $75 million raises Calm’s total funding up to $217 million, with this most recent round being led by Lightspeed Venture Partners with participation from Insight Venture Partners, TPG, and owner of Slack, Marc Benioff.
Calm’s new funding was raised with considerable ease due to the recent surge in popularity of mental health apps since the onset of the COVID-19 pandemic. The company plans to use this capital to address many different aspects of the app. The startup’s largest goal is to expand the app’s reach of businesses, with wellness at work programs hopefully continuing to adopt Calm for Business in large numbers. On a more global leve,l Calm plans to make a larger push for engagement in the Asia-Pacific region and has recently added Japanese as a new language on the app.
Outside of the startup’s funding news, Calm has also recently partnered with Kaiser Permanente to launch a page of free resources for those suffering from mental health issues to utilize. In combination with the new funding and outreach goals, Calm has clear plans for extensive growth in the near future.
Calm has developed a meditation app that is extremely popular, utilized by both individuals and businesses, very well funded, and extremely effective. Considering the further spike in popularity generated by the COVID-19 pandemic, Calm has seen unprecedented growth with hundreds of millions of downloads and over 600 business partnerships. Given this strong trajectory and $2 billion valuation, Calm looks set to continue to succeed long after the pandemic begins to wane.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.