US-based meditation and mindfulness app developer Headspace collected $93m in series C financing yesterday from investors including over-the-top media company Chernin Group and media group Bennett Coleman & Co (BCC).
Investment firm Blisce led the round, which included venture capital firm Waverley Capital, growth equity firm Spectrum Equity and investment firm Advancit Capital. BCC participated through its investments and partnerships arm, Times Bridge.
The round was made up of $53m in equity funding $40m in debt financing provided by financial services firm Pacific Western Bank.
Headspace operates a mobile app that provides guided meditation and mindfulness courses tailored to specific issues, such as stress, anxiety, insomnia or deficiencies in concentration.
The company has also formed a digital health subsidiary, Headspace Health, that designs programs for users living with stress-related chronic diseases. It emphasises the clinical validity of its methods and has conducted more than 70 studies with academic partners.
Headspace’s platform has been downloaded more than 62 million times and has more than 2 million paid subscribers. It also has more than 600 clients through Headspace for Work, an initiative where corporations can deploy the app and monitor employee engagement.
The funding will be used to grow the company’s consumer business, particularly through an increased focus on international expansion efforts and localised versions of its content, including through a partnership with BCC. It will also double down on Headspace for Work.
Headspace has now raised $169m in equity and debt financing altogether, having secured $36m in a series B round led by Spectrum Equity in 2017 that included undisclosed investors.
Chernin Group led a $34m series A round for the company in 2015 that also featured talent agency William Morris Endeavor and Broadway Video Ventures, the corporate venturing arm of entertainment studio Broadway Video.
Advancit Capital, Allen & Company, Breyer Capital, Deerfield Management, Freelands Ventures and assorted private investors also took part in the series A round.
