SAN FRANCISCO — Calm, a popular app that helps users meditate and sleep, has raised $27 million in Series A funding at a $250 million pre-money valuation. The funding round was led by Insight Venture Partners with participation from actor Ashton Kutcher’s Sound Ventures and singer Harry Styles. Prior to this round, Calm raised $1.5 million from seed investors, bringing its total to $28.5 million in funding.
“The last few years have been extraordinary for Calm,” said Michael Acton Smith, Calm co-founder and co-CEO. “Much of the growth has been fueled by word of mouth, and we now have over 26 million downloads, with 50,000 new sign ups a day. In a very short amount of time meditation has moved from the fringe of society to the mainstream.”
Calm plans to use the new funding to increase its international growth and its mission to make the world happier and healthier. “Our ambition is to build one of the most valuable and meaningful brands in the world,” said Alex Tew, Calm co-founder and co-CEO. “Calm is a business with a rare combination of factors: fast-growing, profitable and positive for the world.”
Calm has users in 190 countries and was named Apple’s 2017 iPhone App of the Year. The San Francisco-based company says it generated $22 million in revenue in 2017 and has reached an annual revenue run rate of $75 million. Calm says it is on track to deliver more than three times the revenue growth for the fourth year in a row in 2018.
“We are longtime users of the Calm app and truly believe in its purpose and the team behind it,” said Insight Ventures investor Harley Miller, along with fellow investor Nicolas Wittenborn. “We love Calm’s bold vision to further the practice of mindfulness and address some of today’s most important mental health issues, and we’re excited to see what the future holds.” Miller and Wittenborn are both joining the Calm board as observers.
Ashton Kutcher, founding partner of Sound Ventures, added, “Mental wellness is an extremely important issue in modern society. We think the Calm team has built a very impressive product that is improving the lives of millions of people. We believe in them and their grand vision to make the world a healthier and happier place.”
The Calm app, which helps users meditate, breathe, sleep and relax, features over 100 hours of original audio content, including The Daily Calm, Sleep Stories, meditation lessons, multi-day programs, nature sounds, Calm Masterclasses and music. It is free to download with an optional $60 annual subscription to unlock the full library of content.