Headspace buys Shine app in advancing health equity

Digital health giant Headspace Health has acquired The Shine App, a startup dedicated to self-care and wellness Axios says exclusively.

why does it matter: Headspace in Santa Monica aims to advance health equity and inclusion by providing mental health care to underrepresented communities — and Shine endorses that mission, says Ross Glass, CEO.

  • Glass says the New York-based company, Shine, is “transforming the mental health system.” “To be successful in nurturing all kinds of experiences we have, we need to make sure we bring in talent.”

Zoom: Shine, whose team is made up of 80% BIPOC (black, indigenous and people of color), focuses on providing self-directed wellness to marginalized groups – where the imbalance between supply and demand is disproportionately higher.

  • Under-represented communities include adult women, blacks, Asians, and Latinos; lesbian, gay and bisexual women; and transgender.
  • Also reflecting this health equality gap, 83% of American psychologists were white as of 2019, with only 17% of the workforce from a racial/ethnic minority, According to the American Psychological Association.
  • Co-CEOs fun lady And the Naomi HirabayashiShine, who launched in 2016 after her own experiences, will join Headspace.

How it works: The Shine app offers daily meditations, self-care courses, and personal support to over 45,000 paid subscribers.

  • Complementing the D2C offering, Shine also has more than 90 enterprise customers across the Shine at Work platform.
  • These customers will now have the opportunity to migrate to the Headspace for Work platform.

while, Headspace is fortunate to have a solid cash track with “enough cash on the balance sheet to drive us to profitability,” says Glass.

  • About 60% of Headspace’s platform stems from its consumer business, but the remaining B2B arm is growing 50% year over year, he adds.

context: The acquisition of Shine continues Headspace’s broader efforts to address mental health care gaps in specific populations

  • He. She Recently launched a women’s collection, whose resources address issues related to the body, health, sex and relationships, among others. “It’s 50% of the population but there are very few [content] There, “glass notes.
  • It contains exclusive content designed specifically for the LGBTQIA+ community, among other offerings.

playing condition: Venture dollars have fueled the proliferation of telehealth startups in the recent digital health boom. The space is ready to collect, with tiered players well placed to choose assets that present their playbooks.

  • Touching 100 million people in over 190 countries, with more than 3,700 enterprise customers (from Starbucks to Cigna), “this puts us in a really interesting place,” says Glass, noting that it provides a good solution for startups in need of a distribution channel. .
  • Headspace expects you to remain involved in market consolidation in a crowded market, says the CEO.

  • “The cream of unquoted citation will rise to the top,” he adds. “You will see the noise disappear, but then you will end up with a system that will perform much better than the current system.”

Quick catch up: Headspace and Ginger are combined for a $3 billion valuation in 2020, combining on-demand therapy, mindfulness offerings, and medication.

  • In 2021, Headspace harvest saiyanA, an AI-driven mental health and wellness startup that encourages users to track their moods.
  • Headspace has raised $400 million to date (Ginger and Headspace combined), with major investors including Blackstone.

Between the lines: “The digital health train has left the station,” Glass believes such offerings will remain critical to bending the cost curve and reducing stigma around mental health care.

  • “It’s only a matter of time that you see companies like ours grow in the valuations they had before… We’re in this to change the industry, so who cares what it’s worth at any time.”

What’s Next: And while he’s been “more cautious” amid the overall trends, Glass said Headspace expects to hire about 150 new employees between now and the end of the year.

🤝 One fun thing: Nihal Mehta of Eniac Ventures has introduced Headspace and Shine as a co-investor in the two companies.

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