Simple Habit Shark Tank Update – Shark Tank Season 9
A meditation app and a controversial pitch took center stage in Shark Tank Season 9. Could Simple Habit convince the Sharks that mindfulness was a business worth investing in?
Yunha Kim hoped to secure an investment for Simple Habit, her meditation app, on Shark Tank Season 9 Episode 1. The app allowed users to unwind through meditation in a variety of settings. Rather than sitting down and closing their eyes, users selected meditation exercises that matched their current setting or situation.
There were numerous 5-minute meditation exercises for driving, flying on a plane, getting ready for a meeting, and more. Kim started the business after needing a way to de-stress after working at an internet startup.
Will the sharks find this a mindful investment?
About Simple Habit
| Category | Details |
|---|---|
| Business Name | Simple Habit |
| Founder | Yunha Kim |
| Industry | Health and Wellness, Technology |
| Product | Meditation app with tailored exercises for various settings |
| Funding (Pre-Shark Tank) | Raised $2.8 million |
| Investment Asked | $600,000 for 5% equity |
| Deal Status | No Deal |
| Deal Outcome | No Investment |
| Valuation | $12 million |
Yunha was a former investment banker. She left that company in 2015 and turned to meditation to center herself.
In 2016, she collaborated with a Harvard psychologist to create the Simple Habit app, which launched that July. It targeted busy young professionals who needed a calming influence in their busy work lives.
The basic version of the app was free, while premium subscriptions cost between $49 and $99 per year. Users awarded the app five-star reviews, and Apple featured it among its ‘Apps We Love’ selections. Its users included parents, surgeons, and working professionals seeking a convenient way to relax and recharge.
Simple Habit Shark Tank Pitch
Yunha entered the Tank seeking $600,000 for 5% of her business.
She started her pitch and asked the Sharks to meditate with her, but Mark Cuban mocked her valuation during this exercise. When she finished, the questions began.
At that point, she had 500,000 users, and her revenue for the year was $750,000. The app was free, but premium content cost $11.99 per month or $99 per year. There were 5,000 premium users at the time of taping in summer 2017. So far, they had raised $2.8 million at a $10 million valuation. They were not profitable yet but projected $5 million in revenue the following year (2018).
The Sharks were surprised to learn that only $500,000 of the $2.8 million raised had been spent. Lori Greiner and Daymond John wanted to know why she was there.
Mark Cuban went out and called her a gold digger.
As the discussion moved forward, fewer Sharks remained, and some deals were negotiated.
What Makes Simple Habit Unique?
Simple Habit differentiated itself in the growing wellness market through several key features:
- Meditation exercises were tailored to specific situations and environments.
- Short five-minute sessions were designed for busy schedules.
- A mobile-first approach focused on young professionals.
- Combined free access with premium subscription options.
- Content was created with guidance from mental health and psychology experts.
Did Simple Habit Get a Deal on Shark Tank?
No, Simple Habit did not secure a deal.
Daymond John thought she was taking an opportunity away from a business that really needed the money and said he was out.
Lori Greiner went out next, stating she didn’t think Yunha needed the money.
Mark Cuban said she was just there for the commercial and the Shark Tank effect.
When Richard Branson said he wanted in at $300,000 for 10%, Mark mocked him, and Richard threw his glass of water at Mark’s face, and Mark retaliated. Robert said he was going in with Richard at $300,000 for 10%, making the total between the two Sharks $600,000 for 20%.
After Yunha started crying, Robert reduced his equity request to 15%. Yunha said she couldn’t do that, and both Robert and Richard went out.
As a result, Simple Habit left Shark Tank without securing a deal.
Simple Habit Shark Tank Update
The Shark Tank Blog constantly provided updates and follow-ups about entrepreneurs who had appeared on the Shark Tank TV show.
Yunha’s app received 75,000 downloads on the night the episode aired. Less than three weeks later, Joe Burton, the founder of Whil, a competing wellness app, publicly accused Yunha of copying his business model and conducting business espionage at his firm. Ironically, Virgin Pulse, a Richard Branson-backed company, had partnered with Whil earlier in 2017.
The episode also sparked controversy after Mark Cuban referred to Yunha as a “gold digger” during the pitch. Years later, Yunha said she was shocked by the comment and felt it was inappropriate, though she chose not to respond during filming.
In November 2017, the app reached 1 million downloads. Yunha was also named to the Forbes 2017 30 Under 30 list.
By the end of 2018, Simple Habit had become the number one meditation app in the Apple App Store and was adding approximately 30,000 users each week, raising another $10 million in funding in November 2018.
In February 2019, customers filed a class-action lawsuit against the company in California, alleging that it charged them for ongoing services without proper consent.
During the COVID-19 pandemic, the company introduced “Better Together,” a personal meditation studio feature that allowed family members, friends, and colleagues to meditate together in real time, even when they were not in the same room.
By 2020, the platform had attracted more than 7 million users and temporarily provided premium features free of charge to those financially affected by the pandemic. As of June 2022, the lawsuit was still open, and the business continued to operate.
In March 2023, Simple Habit was acquired by Ingenio. Following the acquisition, the company shifted its focus toward sleep health and rebranded its flagship business as Sleep Reset, a personalized digital sleep clinic based on Cognitive Behavioral Therapy for Insomnia (CBT-I) and one-on-one coaching.
Sleep Reset experienced rapid growth after launch. Within its first nine months, the platform more than doubled its subscriber base and revenue. By 2023, the platform had reached approximately 5 million users and was on track to generate $1.86 million in first-year revenue.
Research conducted by the University of Arizona’s Sleep and Health Research Program later found that Sleep Reset users gained an average of 44 additional minutes of sleep per night, helping establish the platform as one of the first clinically validated digital sleep solutions.
As of May 2024, the business remained active, with estimated annual revenue of around $2 million.
Simple Habit continued operating as a standalone meditation app under Ingenio’s ownership, while Yunha focused primarily on growing Sleep Reset and served on Ingenio’s advisory board.
Where Can You Get It?
Simple Habit is available through mobile app stores and offers both free and premium subscription plans. To learn more about Simple Habit, visit their official website.
The company also expanded its wellness offerings with Sleep Reset, providing additional tools focused on improving sleep health, as seen on their social platforms, Instagram, Facebook and X.
Posts About Simple Habit on Shark Tank Blog
Looking for more insights about Simple Habit and the meditation industry? Check out our related article on Meditation App.
Quick Summary
- Yunha Kim pitched Simple Habit, a meditation app, and sought $600,000 in exchange for 5% equity, valuing the company at $12 million.
- Robert Herjavec and Richard Branson offered $600,000 for up to 20% equity, but she declined the offer and left without a deal.
- The company continued to grow after Shark Tank, surpassing 1 million downloads and raising additional funding. As of 2024, Simple Habit remained in business with annual revenue of around $2 million.
Readers could check out other Shark Tank Season 9 episodes.
Those curious about the other businesses featured in Shark Tank Season 9 Episode 1 could explore more updates and see which ideas made a splash in the Tank.
