A copy of a successful Y Combinator application from Simple Habit

Simple Habit is Yunha Kim’s second startup, and it grew out of private expertise.

Kim additionally constructed a startup referred to as Locket, raised $three.2 million, and bought it to a prime e-commerce firm. The course of left her pressured and burned out, she beforehand advised Business Insider, and meditation was the one treatment that appeared to assist.

While a scholar on the Stanford Graduate School of Business, Kim labored on constructing Simple Habit, an app that provides busy professionals entry to fast guided meditations. Kim wrote to Business Insider that for the primary yr of Simple Habit’s existence, she bootstrapped so she might “prove the business model first and see a product-market fit.”

Then, Kim stated, “we started receiving user emails and testimonials saying Simple Habit was a life-changing product.” She dropped out of Stanford to concentrate on Simple Habit full-time and rework it into “THE destination people trust for their mental wellness.”

Read extra: A former Y Combinator companion 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

Simple Habit

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 referred to 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 in regards to the firm has been redacted, per Kim’s request.) The accelerator is presently accepting purposes for summer season 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 provides 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 lecturers from everywhere in the world — we presently have over 100 lecturers on our platform and are listened to by [redacted].

Our aim is to construct the world’s main platform for mindfulness and meditation content material. We need to assist hundreds of 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 100Ok 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 presently growing Android — anticipated launch date for November.

Simple Habit has already been featured by Apple 5 instances and written about by media extensively.

If you’ve got already began engaged on it, how lengthy have you ever been working and what number of strains of code (if relevant) have you ever written?

We’ve been engaged on the corporate for eight months (since February 2016). We have ~40okay strains of code for all our platforms mixed.

How many customers do you could have?

Since our launch in June 2016, we have had 85okay signal ups. Our weekly [redacted].

How a lot income?

We made [redacted] final month in September. We make [redacted] as of at present, 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 could have 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 (finally I bought Locket to Wish). I raised $3m+ for the corporate and I grew to become extra pressured than ever. I attempted tons of stress-relief merchandise on the time: massages, lavender pillows, silent retreats and different meditation apps. Meditation labored greatest for me, and whereas I appreciated the meditation apps presently available on the market, I did not like how most apps have been one instructor/character based mostly. I needed to have the ability to flick thru differing kinds of lecturers and teachings and make meditations bite-sized so busy professionals might use it. I constructed Simple Habit to essentially serve my wants.

Since launch, we had 1000’s of customers who are suffering from stress, nervousness, melancholy inform us how our app has modified their lives. Check out our app retailer to see their raving critiques! 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 would 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 lecturers.

We’re the primary to create a meditation platform that curates content material from a whole bunch 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 house. Mindfulness lecturers 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 various 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 small business that different firms in it simply do not get?

There are two issues that firms in our house do not get:

1) Our rivals do not get that customers expertise meditation fatigue from listening to the identical voice/character time 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 rivals additionally do not perceive that lecturers may be a highly effective channel for consumer acquisition. The key to growing this channel is to concentrate on creating a nice expertise for meditation lecturers. This consists of establishing the correct monetary incentive construction for lecturers and constructing them instruments that allow and encourage them to be an evangelist of Simple Habit.

How do or will you earn cash? How a lot might 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 take into account this simply the beginning of what we are able to do.

According to analysis by IBISWorld, the meditation and mindfulness trade ranked [sic] in practically $1 billion in 2015. The house is rising very quickly. More than 22% of employers presently 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 wish to tackle bigger market of psychological well being, stress aid and well being & wellness which is a trillion greenback trade.

List any investments your organization has acquired. Include the title of the investor, the quantity invested, the pre-money valuation / valuation cap, and the sort of safety bought (convertible notes, safes or inventory).

After launch, I’ve taken on [redacted] extra investments into the corporate as a convertible be aware 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 instantly fall into our target market. Being half of YC could be an impetus of progress in phrases of studying from the group and attracting one of the best expertise. I am at Stanford GSB proper now and I would fortunately take into account dropping out for YC.

How did you hear about Y Combinator?

So many of my mates have gone by Y Combinator and so they rave about it. Founders of Gusto, Flexport, Weave, Muse, Experiment, Tenjin, Innerspace, ProductHunt, Memebox…

Source link Businessinsider.com

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