Headspace

Digital mental healthUSA

New to Unitard

🤝 Acquired

Peak $3 BillionToday

~-92%

from peak

🦄
Became a unicorn
2021
📈
Peak valuation
$3 Billion ’21
💔
Became a Unitard
2026
💸
Last valuation
~$240M

Capital raised

$320M

Total raised

$54.6K/day

Raised per day

Total raised averaged per day over approximately 16.0 years from founding to bankruptcy or shutdown. This is not measured cash burn. Methodology

Funding: Crunchbase (~$320M across rounds)

Current status

Agreed to be acquired by Sword Health in an all-cash deal reported at $200M-$300M (disclosed via state regulatory filings, mid-2026); expected to close ~Q4 2026, not yet closed

The rise & fall

5 moments · 2010–2026

The key moments.

2010

Headspace founded

Andy Puddicombe and Rich Pierson launch the meditation app in London, later Santa Monica.

Crunchbase

Aug 2021

Ginger merger forms Headspace Health at ~$3B$3B

Headspace merges with on-demand mental-health provider Ginger.

Bloomberg

Jun 2023

~15% of staff cut

Post-pandemic subscriptions slow and employer budgets tighten; ~180 roles go.

Behavioral Health Business

Jul 2026

Sword Health agrees to buy it for $200M–$300M$300M

Regulatory filings reveal an all-cash deal for parent OrangeDot, ~a tenth of the 2021 value.

Healthcare Dive

How it happened

Headspace is the meditation-app pioneer that Andy Puddicombe and Rich Pierson founded in 2010. In 2021 it merged with the on-demand mental-health provider Ginger to form Headspace Health, a deal Bloomberg reported valued the combined company around $3B.

After the pandemic, consumer subscriptions slowed and employers trimmed mental-health budgets while Calm, Lyra and Spring Health pressed in; the company cut staff in two rounds, about 15% in mid-2023 and about 13% in late 2024.

In 2026 the digital physical-therapy company Sword Health agreed to buy Headspace's parent, OrangeDot, in an all-cash deal reported at $200M to $300M. The deal surfaced through state regulatory filings in mid-2026 and was expected to close in the fourth quarter, at roughly a tenth of the 2021 valuation.

Glassdoor reviews traced the post-2022 slide from inside, with employees pointing to leadership churn, repeated layoffs and thinning culture as ratings fell through 2024 and 2025.

Employee accounts paraphrase anonymous, unverified reviews posted publicly on Glassdoor ↗. See our methodology.

Source: Bloomberg (Aug 25, 2021): the Headspace + Ginger merger forming Headspace Health was reported at ~$3B, with terms officially undisclosed (a 'person familiar' figure, a stock merger of equals). Behavioral Health Business: layoffs of ~15% (~180 staff, Jun/Jul 2023) and ~13% (Nov 2024). Healthcare Dive / Behavioral Health Business / pharmaphorum (Aug 2026): Sword Health agreed to acquire OrangeDot (Headspace's parent) in an all-cash deal reported at $200M-$300M, disclosed via a Massachusetts regulatory filing ~Jul 22, 2026 and expected to close ~Q4 2026; not confirmed closed as of Oct 2026. Founded 2010 by Andy Puddicombe and Rich Pierson.