Calm

How Alex Tew Built a $2 Billion Sleep & Meditation App

February 14th, 2025

Founded By

Alex Tew

Monthly Revenue

$37M

Founders

Profitable

Yes

Year Started

2012

Customer

B2B & B2C

Founded By
Alex Tew: Monthly Revenue
$37M

Founders
2: Profitable
Yes

Year Started
2012: Customer
B2B & B2C

Who is Alex Tew?

Alex Tew, originally from Wiltshire, England, gained fame with his Million Dollar Homepage project while at the University of Nottingham, later co-founding Calm to merge his passion for entrepreneurship and mindfulness.

What problem does Calm solve?

Calm helps people escape the chaos of modern life by providing easy-to-use meditation and mindfulness tools via their app, making it indispensable for those struggling with stress and anxiety.

Calm Homepage

How did Alex come up with the idea for Calm?

Alex Tew's journey to creating Calm began with a personal struggle and realization about the importance of mental wellness. After achieving unexpected success with the Million Dollar Homepage, Alex was overwhelmed by the demands and stresses of his newfound fame and subsequent entrepreneurial ventures. This led him to neglect his mental health and meditation practices, which he had valued since his teenage years.

In seeking relief from the chaos, Alex returned to meditation, which inspired him to create a user-friendly tool that could help others find calm in a hectic world. He noticed that many people, like himself, were overwhelmed by the pace of modern life and could benefit from mindfulness but found it difficult to access or practice regularly. By leveraging his experience in building viral web projects, he experimented with small, engaging online experiences that emphasized simplicity and relaxation, such as DoNothingFor2Minutes.com, which validated the potential interest in a bigger idea like Calm.

Alex and his co-founder faced skepticism and doubt from potential investors who underestimated the demand for a digital meditation solution. However, Alex's persistence in refining the concept and vision for Calm paid off when they finally secured funding to launch the app. They targeted a broad audience by making mindfulness approachable and incorporating relatable elements like sleep stories and celebrity collaborations, ultimately leading to the app's significant popularity and success.

How did Alex Tew build the initial version of Calm?

Calm, the meditation and wellness app co-founded by Alex Tew, was built using an iterative approach and innovative strategies. Initially launched as a website in 2012 with $1.5 million in seed funding, Calm quickly pivoted to a mobile app to leverage the growing smartphone adoption. The development process was swift, with the first version taking a few months to come together. Collaboration was central to their system, utilizing early input from meditation experts like Tamara Levitt, who became pivotal in creating the app's content. The build phase wasn't without challenges; early skepticism from investors made raising initial capital difficult, which they overcame by meeting with over 100 potential investors. Challenges also included differentiating Calm from existing wellness apps, which they addressed with unique features like Sleep Stories and celebrity narrators, adding to their appeal and functionality.

What were the initial startup costs for Calm?

Seed Funding: Calm raised $1.5 million in initial funding between 2012 and 2014 to get the business off the ground.

What was the growth strategy for Calm and how did they scale?

Viral Marketing

Calm’s growth relied heavily on viral marketing strategies. Co-founder Alex Tew utilized quirky side projects like "DoNothingFor2Minutes" to draw attention to Calm. This website, encouraging users to do nothing for two minutes, garnered millions of visits and redirected traffic to the Calm app. It demonstrated the power of engaging, simple concepts to capture curiosity, leading to increased brand visibility.

Why it worked: Viral marketing can create a buzz and generate massive traffic quickly. The playful and accessible nature of DoNothingFor2Minutes tapped into a universal desire for relaxation, making it shareable and conversation-worthy.

Partnerships and Collaborations

Calm expanded its reach and credibility through strategic partnerships. By working with corporate partners to offer Calm as a mental health benefit, they reached millions of new users. Additionally, collaborations with celebrities like Harry Styles and LeBron James brought fresh audiences to the platform, enhancing its appeal across different demographics.

Why it worked: Partnerships allowed Calm to leverage the audiences and trust of existing entities. Celebrity collaborations enhanced the app’s attractiveness, while B2B partnerships provided vast user growth potential by integrating Calm as an employee wellness benefit.

App Store Optimization and Recognition

Recognition as Apple’s 2017 App of the Year played a crucial role in boosting Calm’s popularity. This accolade brought significant exposure and credibility, leading to increased downloads and revenue.

Why it worked: Being featured by a major platform like Apple provides instant validation, reaching millions who trust curated selections. This not only increases visibility but also impacts user perception positively.

Corporate Wellness Initiatives

By providing free access to Calm for 10 million employees through corporate wellness programs, Calm significantly increased its user base. This initiative aligned their service with organizational objectives for employee well-being.

Why it worked: Targeting organizations with wellness solutions facilitated bulk user acquisition and provided a scalable growth avenue. It aligned Calm with broader health trends and corporate responsibility goals, adding value to both the companies and their employees.

What's the pricing strategy for Calm?

Calm utilizes a freemium model, offering basic meditation and mindfulness content for free, while premium access costs $14.99/month, $69.99/year, or a lifetime fee of $399.99.

Calm Pricing

What were the biggest lessons learned from building Calm?

Embrace Failure as a Stepping Stone: Alex Tew's early ventures post-Million Dollar Homepage didn't achieve the same success. Instead of being discouraged, each failure provided lessons that paved the way for Calm's eventual success.
Find Balance in Life: Tew's own struggle with mental health highlighted the importance of mindfulness and balance, prompting him to create a meditation app. Knowing when to step back can foster creativity and insight.
Be Persistent Amid Skepticism: Initially, investors were not sold on the concept of a meditation app, but Tew's persistence in obtaining funding and belief in his product eventually led to Calm's success. Always believe in your vision, even when others don't.
Capitalize on Trends: Calm capitalized on the growing interest in mental wellness. For aspiring founders, it's beneficial to watch for emerging trends and position your product to address them.
Create Real Value, Not Just Buzz: After initial success with a "get-rich-quick" scheme, Tew learned to focus on creating lasting value. Prioritize building something that genuinely benefits users.

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