Headspace provides evidence-based mindfulness and mental health tools through its flagship direct-to-consumer app and combines that experience with enterprise offerings that include coaching, therapy, psychiatry and EAP services. The company serves over 4,000 employers across 200 countries and works with an ecosystem of health plans and partners, including large plans like Cigna and organizations such as Accolade, Virgin Pulse and Sequoia. Proceeds from the financing are intended to support expansion of Headspace's mental health platform and to allow the company to be opportunistic in investing where it sees market need. Management stated the financing positions Headspace to expand its enterprise EAP offering and accelerate bringing services to more health plans and directly to consumers in the coming year. The business emphasizes scaling mental health support using technology and has decades of expertise and a global user base. Armentum Partners served as financial advisor to Headspace on the transaction. Headspace operates a consumer mindfulness and meditation app and sells on-the-job mental wellness tools for employers and healthcare practitioners. The company is pursuing clinical validation for mindfulness with a pipeline of about 70 clinical studies in partnership with academic institutions including Carnegie Mellon, UCSF and Stanford. Headspace says its app has been downloaded more than 62 million times across 190 countries, has over 2 million paid subscribers, and is used by more than 600 businesses. The new financing will be directed toward clinical research, expanding business and healthcare sales, and international growth — the company already offers German and French versions of the app. Headspace has appointed former Apple executive Renate Nyborg to lead its European expansion as it competes with rivals like Calm. CEO and co-founder Richard Pierson highlighted the company’s focus on applying mindfulness to broader areas of members’ lives and on delivering better access through employers and healthcare providers. Headspace offers a subscription meditation app and related mindfulness content. The company is cash-flow positive and reports many users pay a $96 annual subscription; its app has been downloaded more than 16 million times and revenue is stated as above $10 million and possibly above $50 million. Management recently installed co-founder Rob Pierson as CEO, who made staff reductions and hired a chief business officer. Headspace plans to use new capital to expand internationally and translate its app into more languages. The company also intends to broaden its content into nutrition, exercise, science and kids programming and to pursue larger corporate partnerships to grow enterprise sales. Headspace is a guided meditation and mindfulness startup offering guided meditation sessions via app and web. Its core product includes a free 'Take 10' ten-minute program and paid subscription plans that provide access to hundreds of hours of content on topics such as stress, creativity, relationships and happiness. Subscription pricing noted in the article includes monthly ($12.95), yearly ($7.99/month), two-year ($6.24/month) and a lifetime option ($419.95). Headspace reports about 3 million users in over 150 countries but does not disclose detailed engagement metrics. Co-founder Andy Puddicombe, a former monk who leads the guided meditations, is cited as contributing to the service’s authenticity. The app is available on iOS, Android and the web, and the company plans to expand content and hire more engineers and content marketers; Headspace is based in London and Venice, California.

Total raised

$265M

Funding rounds

5

Latest round

Debt Financing

Latest activity

Jul 2023