Lightspeed Venture Partners led the deal with participation from other investors including Insight, TPG and Salesforce CEO Marc Benioff.
2X the last round’s valuation. The eye-popping valuation is twice what it was the last round that Calm raised, which isn’t all that surprising given that the retail-oriented health and wellness sector is on fire in Q3.
Not to mention that the pandemic has given the entire space a massive boost as people’s stress levels are through the roof and Calm and other health and wellness products are in high demand as a result.
New growth metrics. More than the valuation, the growth metrics that were released along with the financing news are even more astounding. The app has over 100 million downloads – that is up from 40 million downloads that they notched in February 2019. And paying subscribers increased to 4 million from 1 million back in February 2019. Ok, maybe doubling the valuation is not that much of a stretch with those kinds of numbers.
Health and wellness sector investment is booming in Q32020
According to a new emerging tech research report released by PitchBook, overall, venture firms invested $2.3 billion into retail-oriented companies in the health and wellness industry in Q3 2020. This is understandable given the backdrop of the pandemic. Investors have been throwing cash at startups offering telehealth tools, mindfulness, meditation and other services to help people with their mental and emotional well-being.
Some details from the PitchBook report
The PitchBook report also cites the Increased use of mobile wellness applications and at-home fitness devices driven by gym closures as a factor. There has also been a focus on preventative care and shifts in traditional healthcare costs that are driving investment into the sector.
Some highlights of the report are as follows:
- The repeal of many regulations hindering growth has aided telehealth startups as consumers have avoided visiting hospitals.
- Consumer wellness startups are forging new corporate partnerships in a bid to boost employee health.
- Technology enhancements have enabled the creation of biometric wearables and remote patient-monitoring devices.
With all the money sloshing around the sector, this isn’t going to be the last time we hear about big news happening regarding companies in the space.