Simple Habit is Yunha Kim’s second startup, and it grew out of private expertise.
Kim additionally constructed a startup known as Locket, raised $three.2 million, and offered it to a prime e-commerce firm. The course of left her confused and burned out, she beforehand informed Business Insider, and meditation was the one treatment that appeared to assist.
While a pupil on the Stanford Graduate School of Business, Kim labored on constructing Simple Habit, an app that gives busy professionals entry to fast guided meditations. Kim wrote to Business Insider that for the primary 12 months of Simple Habit’s existence, she bootstrapped so she may “prove the business model first and see a product-market fit.”
Then, Kim mentioned, “we started receiving user emails and testimonials saying Simple Habit was a life-changing product.” She dropped out of Stanford to give attention to Simple Habit full-time and rework it into “THE destination people trust for their mental wellness.”
Read extra: A former Y Combinator accomplice realized essentially the most successful founders do not at all times look good on paper — there’s a rather more dependable signal they’re destined for greatness
Kim utilized to Y Combinator — the famed startup accelerator that is launched the likes of Dropbox, Airbnb, and Stripe — and was accepted into the winter 2017 batch.
Afterward, she appeared on “Shark Tank,” the place Mark Cuban known as her a “gold digger” after which walked again the remark. Kim did not land an funding, however she hardly let that deter her.
So far, Simple Habit has raised $12.eight million, from buyers together with New Enterprise Associates, Dropbox CEO Drew Houston, and Gusto CEO Joshua Reeves. In November 2018, Simple Habit closed a $10 million Series A spherical led by Foundation Capital.
Here’s Simple Habit’s unique application to Y Combinator. (Some knowledge concerning the firm has been redacted, per Kim’s request.) The accelerator is at present accepting purposes for summer time 2019.
Describe your organization in 50 characters or much less.
5-minute meditation app. Spotify for meditation.
What is your organization going to make?
We constructed an iOS app that gives 5-minute meditations for all times conditions all through the day. For instance, meditations to cut back nervousness earlier than a assembly, enhance focus at work, and sleep higher.
Meditations are recorded by prime meditation academics from everywhere in the world — we at present have over 100 academics on our platform and are listened to by [redacted].
Our objective is to construct the world’s main platform for mindfulness and meditation content material. We wish to assist thousands and thousands of individuals study to stay extra mindfully and be extra resilient.
Please enter the url of a 1 minute unlisted (not non-public) YouTube video introducing the founders.
How far alongside are you?
I began the corporate in Feb 2016 and launched the iOS app in June 2016. In simply three months, we’re reaching near 100Okay downloads on our iPhone app. 5% of sign-ups find yourself paying for a subscription that prices about $12 a month. [Redacted.] Our week-over-week progress price is [redacted]. We are at present creating Android — anticipated launch date for November.
Simple Habit has already been featured by Apple 5 instances and written about by media extensively.
If you have already began engaged on it, how lengthy have you ever been working and what number of traces of code (if relevant) have you ever written?
We’ve been engaged on the corporate for eight months (since February 2016). We have ~40ok traces of code for all our platforms mixed.
How many customers do you have got?
Since our launch in June 2016, we have had 85ok signal ups. Our weekly [redacted].
How a lot income?
We made [redacted] final month in September. We make [redacted] as of at the moment, so we’re anticipating to make [redacted] in October.
What is your month-to-month progress price?
User progress price was 95% final month ([redacted] MRR progress price was [redacted]).
Why did you choose this concept to work on? Do you have got area experience on this space? How are you aware individuals want what you are making?
After graduating from Duke in 2011, I labored in funding banking and later based my first startup, Locket (ultimately I offered Locket to Wish). I raised $3m+ for the corporate and I grew to become extra confused than ever. I attempted heaps of stress-relief merchandise on the time: massages, lavender pillows, silent retreats and different meditation apps. Meditation labored finest for me, and whereas I favored the meditation apps at present available on the market, I did not like how most apps have been one instructor/character primarily based. I needed to have the ability to flick thru differing types of academics and teachings and make meditations bite-sized so busy professionals may use it. I constructed Simple Habit to essentially serve my wants.
Since launch, we had 1000’s of customers that suffer from stress, nervousness, despair inform us how our app has modified their lives. Check out our app retailer to see their raving opinions! https://itunes.apple.com/us/app/simple-habit-mindfulness- meditations/id1093360165
What’s new about what you are making? What substitutes do individuals resort to as a result of it does not exist but (or they do not know about it)?
In contract to Headspace and Calm who’ve launched a single ‘channel,’ we’re launching a market — a platform for mindfulness, providing a repeatedly up to date stream of meditation content material from a selection of academics.
We’re the primary to create a meditation platform that curates content material from lots of of high-quality mindfulness professionals and cost subscriptions for entry.
We’re additionally the primary to introduce a Spotify-like enterprise mannequin to the meditation area. Mindfulness academics are paid a portion of our subscription income commensurate to the quantity of instances their content material is listened to. Users get entry to meditation content material that’s numerous in character and subjects.
Silent retreats and in-person meditation studios are different options, however they don’t seem to be accessible to all busy working professionals financially or temporally.
What do you perceive about your corporation that different firms in it simply do not get?
There are two issues that firms in our area do not get:
1) Our opponents do not get that customers expertise meditation fatigue from listening to the identical voice/character again and again. In different phrases, they begin to tune out. Imagine if Spotify or iTunes solely carried one band. One’s enjoyment of music would diminish over time. Similarly, the effectiveness of meditation on a listener diminishes over time as they get accustomed to the strategies and character of the identical meditation instructor.
2) Our opponents additionally do not perceive that academics could be a highly effective channel for consumer acquisition. The key to creating this channel is to give attention to creating a nice expertise for meditation academics. This contains establishing the proper monetary incentive construction for academics and constructing them instruments that allow and encourage them to be an evangelist of Simple Habit.
How do or will you make cash? How a lot may you make?
In the US alone, 18M individuals are meditating (reported by Forbes), and this quantity retains rising yearly. Capturing [redacted] of these customers is a [redacted] enterprise at our present subscription pricing. However, we think about this simply the beginning of what we are able to do.
According to analysis by IBISWorld, the meditation and mindfulness business ranked [sic] in practically $1 billion in 2015. The area is rising very quickly. More than 22% of employers at present provide mindfulness coaching for his or her workforce. However, meditation and mindfulness is simply the tip of an iceberg. We consider there are a LOT of methods to monetize a massive viewers of individuals who belief our firm to information their actions round their well being. We’d prefer to tackle bigger market of psychological well being, stress reduction and well being & wellness which is a trillion greenback business.
List any investments your organization has obtained. Include the identify of the investor, the quantity invested, the pre-money valuation / valuation cap, and the kind of safety offered (convertible notes, safes or inventory).
After launch, I’ve taken on [redacted] further investments into the corporate as a convertible observe at a [redacted].
What satisfied you to use to Y Combinator?
Y Combinator has an unbelievable community of entrepreneurs and mentors – many of whom have used Simple Habit and immediately fall into our target market. Being half of YC can be an impetus of progress in phrases of studying from the neighborhood and attracting the very best expertise. I am at Stanford GSB proper now and I would fortunately think about dropping out for YC.
How did you hear about Y Combinator?
So many of my mates have gone by Y Combinator they usually rave about it. Founders of Gusto, Flexport, Weave, Muse, Experiment, Tenjin, Innerspace, ProductHunt, Memebox…