Digital Wellness

A new industry proving that digital connectivity and mental health can co-exist.

Overview

Reducing stress and enhancing mindfulness through digital services

Digital wellness refers to a variety of digital tools and services designed to help users relax, reduce stress, enhance mindfulness, and address mental health issues such as depression and anxiety. Traditionally, wellness services have been delivered through physical studios with limited flexibility for people with busy schedules. Individuals from all walks of life now demand access on their terms and schedules, opening up opportunities for digital tools to replace traditional wellness delivery methods, and adding more value to the digital wellness ecosystem.

Digital wellness companies generally fall into one of three broad categories: meditation and psychological wellness, mindfulness and cognitive wellness, and sleep therapy.

What's driving this industry?

Industry Updates

Tripp partners with Nreal for augmented reality integration
Sep 24
Sleep Cycle launches app for Wear OS in partnership with Samsung
Aug 31
Eight Sleep raises USD 86 million in Series C funding round
Aug 29
View all updates
Market Sizing

The US market size for digital wellness apps could reach USD 2.7 to 4.2 billion by 2025

Conservative case

USD 2.7 Bn

Base case

USD 3.4 Bn

Expansion case

USD 4.2 Bn

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COVID-19 IMPACT

  • Calm: Doubled paid membership in 2020, reaching 4 million customers and 100 app downloads by Dec 2020, up from 40 million at the beginning of the year.

  • The top five US mental wellness apps experienced a 27% YoY growth in daily active users and the top 100 mental wellness apps experienced a 43% YoY revenue growth as of October 2020.

  • Global downloads of the top 10 mental wellness apps reached 10 million in April 2020, up 24% from January.

  • Companies launched specific-COVID related programs : 

    • Headspace launched ‘Weathering the storm’, a free feature including meditation, sleep, and movement exercises to help users during the pandemic. 

    • Calm launched a page of free resources at the beginning of the pandemic, helping it become the most downloaded digital wellness app of April 2020  with 3.5 million downloads.

    • Ten Percent Happier launched a Covid-19 sanity guide with free meditation exercises, podcasts, and text-based resources.

    • Simple Habit launched “Better Together” to allow individuals to invite family, friends, and colleagues to meditate together from different locations and “You’re not alone” adding 50 inspiring stories from influencers.

    • Insight Timer launched free meditation resources aimed at boosting the immune system and lung capacity during Covid-19.

Market Mapping

Meditation and psychological wellness startups dominate the digital wellness disruptors

Although meditation and psychological wellness companies represent the bulk of digital wellness startups, mindfulness and sleep therapy apps have garnered more attention over recent years. Some larger players in the meditation and psychological wellness space, such as Headspace, Calm and Insight Timer, also offer sleep and mindfulness services in an attempt to serve as one-stop solutions for digital wellness. Other startups in the digital wellness industry specialize in a single wellness segment.

Incumbents
Growth
Early
Seed
Pre seed
Meditation and Psychological Wellness
?
Mindfulness and Cognition
?
Sleep Therapy
?
Technologies
Technologies
Technologies
Cleveland Clinic
Mayo Clinic
Insight Meditation Center
Calm
Headspace
Muse
Insight Timer
Big Sky Health
Unplug Meditation
BurnAlong
Simple Habit
Ten Percent Happier
Breethe
Meditation Moments
FitMind
Tripp
Wave Meditation
Monclarity
MindApps
Mindfulness Everywhere
MindLabs
YogaWorks
CorePower Yoga
Meredith Corporation
Lumos Labs
Centrical
Posit Science
BurnAlong
Tripp
Jour
Mindwell Labs
Stoic
Reset
Dreem
Moshi
Pzizz
Signifier Medical Technologies
Kokoon
Endel
Loona Inc.
Tatch
Revery

The Disruptors

Calm leads in terms of funding and revenue and Headspace follows closely

The digital wellness space is still in its early stages with the players being privately funded and raising funds occasionally. Calm leads among digital wellness disruptors closely followed by Headspace. Another notable disruptor is Insight timer, who in fact claims to rank first in the US among meditation apps in terms of the time spent by users.

Meditation and Psychological Wellness

?

Disruptors

?
Funding in USD Millions
Calm
218
Headspace
216
Muse
30
Insight Timer
27
BurnAlong
16
Tripp
15
Simple Habit
13
Big Sky Health
12
Unplug Meditation
Unknown
Watchlist
?
Ten Percent Happier
Wave Meditation
Monclarity
MindLabs
Breethe
MindApps
Mindfulness Everywhere
Meditation Moments
FitMind

Mindfulness and Cognition

?

Disruptors

?
Funding in USD Millions
Lumos Labs
68
Centrical
66
Posit Science
24
BurnAlong
16
Tripp
15
Watchlist
?
Jour
Stoic
Reset
Mindwell Labs

Sleep Therapy

?

Disruptors

?
Funding in USD Millions
Signifier Medical Technologies
58
Dreem
57
Moshi
32
Endel
8
Loona Inc.
Unknown
Watchlist
?
Kokoon
Tatch
Revery
Pzizz

Calm

Calm is a digital wellness company which offers guided meditations to make people happy as well as mindfulness and sleep programs through a smartphone app. Its audio content is designed to strengthen mental fitness and address mental health challenges such as stress, anxiety, insomnia, and depression. The company started out as a website in 2011 where users were trained to stare at a screen and listen to waves on a beach for two minutes without touching their mouse. In February 2013, more content was added and the company launched a mobile app. Calm was named by Apple as the 2017 iPhone App of the Year and received Editors' Choice certification by Google in 2018. Calm offers content in English, Spanish, French, and German and operates Calm Business, a business-to-business (B2B) with over 600 corporate clients as of November 2020.

Calm gained significant traction in 2020 during the Covid-19 lockdowns. It became the most downloaded digital wellness app during April 2020 with 3.9 million downloads worldwide, including 1.6 million downloads in the US. Kaiser Permanente, a large managed care service provider, provided Calm free for its 12.4 million members in May 2019. Calm also partnered with CNN on the 2020 US presidential election day to play the sound of rain hitting leaves on air, a marketing effort that went viral on social media.

As of December 2020, Calm has reported over 100 million app downloads (compared with over 40 million in early 2019 and over 80 million as of May 2020) with 4 million paying members—doubling 2019’s total of 2 million.In July 2019, Calm raised USD 27 million in a Series B extension round valuing the company at USD 1 billion, becoming the first meditation startup to reach unicorn status. In December 2020, Calm raised USD 75 million in a series C funding round led by Lightspeed Venture Partners doubling it’s valuation to USD2.0 billion. Calm plans to use the funding to expand operations globally and broaden its B2B offerings.

Segment:
Meditation and Psychological Wellness
Total funding:
USD 218.0 million
Competitors:
Headspace, Simple Habit, Insight Timer
Disruptor Funding History

Meditation and Psychological Wellness:

Calm
Headspace
Muse
Insight Timer
BurnAlong
Tripp
Simple Habit
Big Sky Health
Ten Percent Happier
Wave Meditation
Monclarity
MindLabs

Mindfulness and Cognition:

Lumos Labs
Centrical
Posit Science
BurnAlong
Tripp
Jour

Sleep Therapy:

The Incumbents

Traditional wellness and yoga studios digitize their offerings

The Covid-19 pandemic has accelerated a long-term trend of traditional brick and mortar yoga studios and healthcare providers offering their services online.

Acquisition

In-house Development

Partnership

Investment

Cleveland Clinic
check
Mayo Clinic
check
check
check
YogaWorks
check
Insight Meditation Center
check
CorePower Yoga
check
Meredith Corporation
check
Cleveland Clinic
Cleveland Clinic, a top-ranked US hospital, has launched several free digital programs and applications in the digital wellness space including video lessons on relaxation techniques, stress management, and sleep. It has also launched smartphone apps for sleep (Go! To Sleep) and meditation (Stress Free Now). The Cleveland Clinic provides several online video instruction sessions on yoga to help people practice calming and relaxation techniques as well.

Notable Investors

Funding data are powered by Crunchbase

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