This Calm company profile covers the company's valuation, revenue, funding rounds, investors and history. Calm works in consumer health, with a focus on meditation and sleep apps. It was founded in 2012 and is headquartered in San Francisco, California, United States. Its latest valuation on record is US$2 billion (December 2020). Every figure links to a public source, and anything the company hasn't disclosed is marked as such.
Revenue
| Metric | Value | As of | Source |
|---|---|---|---|
| Scale | More than 100 million downloads and 4 million paying members; profitable since 2016 (company-reported) | December 2020 | Crunchbase News |
Funding history
| Date | Round | Amount | Valuation | Investors | Source |
|---|---|---|---|---|---|
| Dec 2020 | Series C | US$75M | US$2B | Lightspeed Venture Partners (lead); TPG, Insight Partners, Marc Benioff, Goldman Sachs Asset Management funds | Fenwick |
| 2019 | Series B | See source | US$1B | See source | MobiHealthNews |
Calm timeline
Key dates from the sources on this page, oldest first. Metric snapshots are listed after the funding events.
- 2012 — Calm is founded in San Francisco by Michael Acton Smith and Alex Tew.
- 2019 — Series B: See source, valuing the company at US$1B.
- Dec 2020 — Series C: US$75M, valuing the company at US$2B. Investors: Lightspeed Venture Partners (lead); TPG, Insight Partners, Marc Benioff, Goldman Sachs Asset Management funds.
- December 2020 — Scale: More than 100 million downloads and 4 million paying members; profitable since 2016 (company-reported).
Investors
Overview
Calm is a mental wellness app best known for meditation and sleep content. Its library includes guided meditations, breathing exercises, music, nature sounds and "Sleep Stories", bedtime stories read by well-known voices that became one of its signature features. Calm also offers programmes on stress, anxiety, focus and relationships, and has expanded into Calm Business for employers and Calm Health for healthcare organisations. It became one of the highest-grossing health apps in the world, and in December 2020 it raised US$75 million at a US$2 billion valuation, during a surge in demand for mental wellness tools during the pandemic.
Michael Acton Smith and Alex Tew founded Calm in 2012. Acton Smith had previously co-founded Firebox, a UK online gift retailer, and created the children's entertainment brand Moshi Monsters. Tew was known for creating the Million Dollar Homepage, a website where he sold pixels for advertising to pay for university. The two set out to create a simple way for people to reduce stress and sleep better, starting with a website and app featuring calming nature scenes and guided meditation.
Products
- Calm app: meditations, Sleep Stories, music, soundscapes, breathing and movement exercises.
- Programmes: courses on anxiety, stress, focus, self-esteem and relationships.
- Calm for kids: content designed for children and families.
- Calm Business: subscriptions provided by employers to staff.
- Calm Health: a mental health offering for health plans and healthcare providers, launched in 2023.
Funding
Calm raised relatively little early funding. A 2019 Series B valued it at US$1 billion. In December 2020 it raised a US$75 million Series C at a US$2 billion valuation, led by existing investor Lightspeed Venture Partners with TPG, Insight Partners, Marc Benioff and funds managed by Goldman Sachs Asset Management. Crunchbase reported that total funding reached about US$217 million and that Calm said it had been profitable since 2016. We haven't found a newer priced round, so the 2020 valuation should be treated as historical.
Business model
Calm earns most of its revenue from subscriptions, usually paid annually, after a free trial. It also sells to employers, health plans and healthcare providers. Celebrity-narrated content and partnerships drive awareness, and its brand helps attract new subscribers. Retention is the key challenge for consumer subscription apps, as many users stop using meditation apps after the initial enthusiasm fades.
Competition
Calm competes with Headspace, its main rival, and with Insight Timer, Ten Percent Happier, Balance and many smaller apps; with sleep and wellness features in Apple, Google and Samsung devices and wearables such as Oura; and, in employer and health markets, with mental health providers such as Lyra Health and Headway. Its strengths are a strong brand, a large content library and early profitability.
Calm at a glance
Calm is a San Francisco meditation and sleep app founded in 2012 by Michael Acton Smith and Alex Tew. It reported more than 100 million downloads and 4 million paying members in 2020 and said it had been profitable since 2016. It raised a US$75 million Series C led by Lightspeed at a US$2 billion valuation in December 2020.
Timeline
- 2012: founded.
- 2016: launches Sleep Stories; becomes profitable according to the company.
- 2017: named Apple's app of the year.
- 2019: raises a Series B at US$1 billion.
- December 2020: raises US$75 million at US$2 billion.
- 2023: launches Calm Health.
The pandemic boom and after
During 2020, lockdowns, stress and disrupted sleep drove record downloads of meditation and wellness apps. Calm's growth helped it raise at a doubled valuation. After the pandemic, consumer app growth slowed and competition increased, prompting Calm and Headspace to focus more on employers and healthcare, where contracts are larger and more stable. Headspace's merger with Ginger in 2021 showed the same shift towards clinical care.
Wellness versus clinical care
Meditation and sleep content can help with everyday stress, but it isn't a substitute for treatment of mental illness. Calm Health aims to bridge the gap by working with health plans and providers, offering evidence-based programmes and connecting users to further care. Moving into healthcare brings requirements for clinical evidence, privacy compliance and integration with health systems.
Who uses Calm
Calm's users include adults seeking better sleep and less stress, families using children's content, employees through workplace benefits, and patients through health plan and provider partnerships.
Valuation context
Calm's US$2 billion valuation was set during the 2020 wellness boom. Consumer app valuations generally fell afterwards, so the figure may not reflect current value. Our guide to unicorn companies lists comparable firms.
Risks
- Retention: many subscribers cancel after a year.
- Competition: many free and paid alternatives exist.
- Platform features: device makers add similar wellness tools.
- Stale valuation: the last mark is from 2020.
Questions for users
- Does the free trial convert automatically to a paid plan?
- Which content fits your sleep or stress goals?
- Is Calm available through your employer or health plan?
Why content matters for wellness apps
Unlike productivity software, a meditation app's value lies largely in its content: the quality of guided sessions, the voices, the music and the variety. Calm invested heavily in original content, including Sleep Stories read by actors and celebrities, which generated media attention and gave subscribers reasons to return. Fresh content helps retention, but it costs money to produce and must be updated regularly. Competitors have followed similar strategies, making content quality and brand the main ways apps differentiate.
Questions for employers
- What engagement rates do similar organisations see?
- Does the offering include clinical support or only self-guided content?
Latest developments (October 2026)
Calm has not announced new funding since its December 2020 round at US$2 billion. In February 2026 it raised the price of its annual subscription, according to Sacra, and it continues to expand into sleep, workplace and clinical mental health offerings. The 2020 valuation remains the latest sourced figure and dates from the pandemic-era boom in wellness apps.
What to watch
Watch Calm Health partnerships, subscriber trends, new funding and possible consolidation in wellness apps.
Takeaways
Users get accessible tools for sleep and stress. Founders can see how content and brand can build a profitable app. Investors should treat its US$2 billion valuation as a 2020 mark.
Sources
Every figure on this page comes from the public sources below. Where sources disagreed, we used the company's own announcement or a primary news report. Private-company data changes; check the date beside each figure.
Frequently asked questions
What does Calm do?
Calm is a consumer health / meditation and sleep apps company headquartered in San Francisco, California, United States. It was founded in 2012.
What is Calm's valuation?
Calm was valued at US$2 billion as of December 2020, according to MobiHealthNews. Private company valuations are set at funding rounds or share sales and can change significantly between them.
How much revenue does Calm make?
Calm is a private company and has not publicly disclosed its revenue. Figures on third-party sites are usually modelled estimates rather than numbers reported by the company.
What was Calm's latest funding round?
The most recent financing we have verified is a series c in Dec 2020: US$75M, at a valuation of US$2B. Source: Fenwick.
Who are Calm's investors?
Investors named in public announcements include Lightspeed Venture Partners, TPG, Insight Partners, Goldman Sachs Asset Management and Marc Benioff.
Who founded Calm?
Calm was founded in 2012 by Michael Acton Smith and Alex Tew.
Is Calm a public company?
No. Calm is a private company (private, venture backed), so its shares are not traded on a stock exchange and it isn't required to publish its financial results.
Where is Calm headquartered?
Calm is headquartered in San Francisco, California, United States.