How Headspace Is Winning the Cutthroat Meditation App War
In the race to quell our growing anxiety, Headspace may have a secret weapon
Headspace and Calm share the same friendly mission: Headspace wants “to improve the health and happiness of the world” while Calm wants to “make the world healthier and happier.” But the two companies, which both make apps that guide people through meditation exercises, are engaged in a cutthroat competition, one that has only intensified as the nation faces a growing mental health crisis exacerbated by the pandemic.
Before Covid hit, both companies had raised a lot of funding. Calm raised a $115 million Series B round in 2019. In February 2020, Headspace raised its Series C round, $93 million in equity and debt. Just a few months later, it extended the round and added another $47.7 million in equity. Since March, the companies have both spent millions on television commercials: Calm spent some $15.6 million on TV ads between March and August (up from $3 million the year before) and Headspace spent $27.3 million on its TV campaign, according to the New York Times.
