Morning Report: Calm raises $27 million, further bolstering startups operating in the mindfulness space.
Venture investors are all about the hustle. But in the case of Calm, taking a break is just as lucrative. The startup, founded in 2012, announced a $27 million Series A at a $250 million valuation. It’s a large jump from its more humble $1.5 million seed round split between two deals in 2013 and 2014, according to Crunchbase.
However, unlike some larger startup funding rounds we’ve seen, it’s not unjustified. As reported by VentureBeat, Calm’s revenues and user base have been growing exponentially. The startup’s current annual run rate is reportedly at $75 million, with the startup confirming that it is profitable. It is reportedly adding 50,000 users a day, representing a healthy funnel of free users who can turn into paying customers.
Of course, Calm is not the only app that claims to reduce stress and increase mindfulness. Over twenty companies have raised venture capital in the mindfulness app space, including Headspace ($75.2 million), Simple Habits ($2.6 million), and Shine ($8.3 million). Startups aren’t the only entities in tech noting the value in taking a moment to one’s self. YouTube recently introduced a new feature that notifies viewers to ‘”take a break” when they have spent an inordinate amount of time watching videos. And through iOS 12, Apple is introducing app limits and more nuanced control over the do not disturb feature.
Overall, it appears the need to manage our tech addictions can be solved with… more tech. And luckily for VCs, this class of startups can grow fast and turn a profit, too.
From The Crunchbase Daily:
- Leaders of top U.S. tech companies, including Apple, Google, Facebook, Microsoft and others, are voicing opposition and alarm at the Trump administration policy of separating migrant parents and their children at the border. Employees are also voicing outrage, including a group of Microsoft employees who are asking the software maker to stop working with Immigration and Customs Enforcement.
- PayPal is shelling out $400 million in cash to acquire San Francisco-based Hyperwallet, an 18-year-old provider of payment applications whose tools are commonly used for disbursements to gig workers.
- Chinese smartphone maker Xiaomi will postpone listing shares in mainland China until completing a separate IPO in Hong Kong.The company is reportedly targeting a valuation of $75 billion and is planning to raise around $10 billion from its public offering,
- Houston, Texas-based Mercury Fund is raising a new venture capital fund, the firm’s fourth, according to a securities filing. The target goal of $125 million would make it the firm’s largest fund to date.