Calm App Founder: From $0 To $2 Billion By Making The World Meditate: Michael Acton Smith | E117

TL;DR

Michael Acton Smith, founder of Calm, reflects on his entrepreneurial journey, from facing failures to building a successful meditation and sleep app, and discusses the importance of mental health.

Transcript

solving the global mental health crisis it's a first order problem one in three of us will experience depression or anxiety and i realize that this could be one of the biggest opportunities and businesses in the world michael acton-smith he's the billionaire founder of the mindful meditation and sleep app calm everyone thought we were crazy the bri... Read More

Key Insights

• 🧠 Mental Health Crisis: One in three people will experience depression or anxiety, making mental health a significant global issue. There is a huge opportunity for businesses that focus on solving this crisis.
• 🌊 Taking Off: Calm, a mindful meditation and sleep app, went through years of struggle but eventually reached a tipping point where their subscription business model became successful.
• 🚀 Attention in the 21st Century: With constant stimulation and noise from social media, billboards, and TV, the ability to decide where and how we put our attention has become a valuable skill.
• 📚 Human Brain Complexity: The human brain is the most complex thing in the known universe, yet it doesn't come with an instruction manual. Mindfulness and meditation can help people better understand and optimize their brains.
• ✉️ Influence of Subscriptions: Increasing the price of their subscription from $10/year to $40/year helped Calm generate more revenue and provided evidence of the value their service provided to users.
• 🌐 Internet Shift: The shift from desktop web to mobile devices affected businesses like Calm, as kids moved away from web-based games to mobile apps.
• ⛰️ Rising from Failure: Calm's founder, Michael Acton Smith, experienced several failures before finding success with Calm, demonstrating the resilience and determination needed to rebuild and succeed.
• 💡 Deep Work and Creativity: Acton Smith emphasizes the importance of taking time to do the deep work, research, and marinate in ideas before launching a business, as this creates a solid foundation for success.

Questions & Answers

Q: How did Michael Acton Smith's curiosity and creativity contribute to his success as an entrepreneur?

Michael Acton Smith's curiosity and creativity were instrumental in his success as an entrepreneur. From a young age, he had a keen interest in various subjects and loved exploring new ideas. This curiosity fueled his creativity, allowing him to connect seemingly unrelated dots and generate innovative business concepts. He attributes his ability to generate ideas and think creatively as a crucial aspect of the entrepreneurial mindset, particularly when it comes to developing and bringing unique products and services to the market. Acton Smith's love for taking these ideas and transforming them into tangible businesses played a pivotal role in his entrepreneurial journey, demonstrating the worth and impact of curiosity and creativity in the entrepreneurial world.

Q: How did the failure of the Perplex City game and the shift in the gaming market lead Michael Acton Smith to create Calm?

The failure of the Perplex City game and the subsequent shift in the gaming market prompted Michael Acton Smith to explore a new venture focused on mental well-being. As the gaming industry transitioned to mobile devices, he recognized the opportunity to create a transformative app that could address the global mental health crisis. Acton Smith personally experienced the benefits of meditation and mindfulness during a solo holiday, which helped him gain clarity and resilience in the face of his company's challenges. Inspired by his own experience and after discovering the domain name calm.com was available, Acton Smith teamed up with his friend Alex Tew to build a meditation and sleep app that would make mindfulness accessible and relatable to everyone, thus creating Calm.

Q: How did Michael Acton Smith's view of mental health change throughout his entrepreneurial journey?

Michael Acton Smith's view of mental health evolved significantly throughout his entrepreneurial journey. While he initially struggled with stress and burnout during challenging periods in his businesses, he didn't fully grasp the importance of mental health until he discovered the benefits of meditation and mindfulness. This realization prompted Acton Smith to delve deeper into the science behind mindfulness and its potential impact on mental well-being. He recognized that mental health was just as important as physical health and that meditation could serve as a powerful tool for upgrading one's mental operating system. Through his experience with Calm, Acton Smith became passionate about helping others improve their mental health and transform their lives. He gained a broader understanding of the significance of mental health and the need for destigmatization and support in society.

Q: How did storytelling contribute to Michael Acton Smith's entrepreneurial success?

Storytelling played a significant role in Michael Acton Smith's entrepreneurial success. He discovered that effectively communicating the human angle and story behind a business or product is more compelling than solely focusing on financial metrics or technology. Acton Smith understood that people resonate with stories and are more likely to engage and connect when they can see the personal impact or transformative nature of a product. By crafting compelling narratives around his businesses, Acton Smith was able to capture the attention and imagination of investors, team members, and customers. This storytelling approach helped him build connections, generate media coverage, and create a community around his ventures. Acton Smith's ability to leverage storytelling as an entrepreneur demonstrates the power of crafting narratives to capture attention, inspire action, and foster success in the business world.

Summary & Key Takeaways

• Michael Acton Smith, founder of Calm, experienced numerous failures and setbacks before finding success with his meditation and sleep app.

• He emphasizes the significance of addressing the global mental health crisis and how mindfulness and meditation can be valuable tools in improving mental well-being.

• Acton Smith shares personal anecdotes about the challenges he faced, including financial struggles, failed business ventures, and the emotional toll of building a company.

• He highlights the importance of taking the time to explore ideas and deeply understand the business model before diving into entrepreneurship.

• Acton Smith discusses the transformative power of storytelling in entrepreneurship, the role of curiosity and creativity in his success, and the need to balance passion with commercial instincts.