The Emerging Mind Training Industry

1. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
The Emerging
Mind-Training Industry
Charlie Hartwell, Operating Partner
Bridge Builders Collaborative

2. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Mind-Training is the cognitive capacity of
increasing awareness as to how thoughts,
emotions, behaviors impact reality, and creating
opportunities to enhance well-being.
What is Mind-Training?

3. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
The Evolution of the Movement to Well-Being
SCALEENTREPRENEURSSCIENCE
Today:
Mind–Fitness
(Mind)
Tomorrow:
Fitness
(Well-Being)
30 Years ago:
Physical–Fitness
(Body)
Future:
Spiritual Fitness
(Conscious Well-Being)

4. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Factors Creating Interest in Mind-Training
Technology
Clinical Validation
Stress
Health Care Costs
Spiritual Connection
Mental Health Awareness
Big Data
Addiction
Innovation needs
Social AcceptancePurpose
Social Emotional Learning
Leadership

5. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Mindfulness is Rigorously Researched, Now Mainstream
8 2 6 7 13 16 18 26 32
53 41
65
115
158
243
272
380
490
542
762
902
0
200
400
600
800
NumberofPublications
Year
Source: Articles in Web of Science TM
Over 4,000 peer-reviewed
articles have appeared in
scientific publications

6. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Organizations are Engaging in Mind-Training for Various Reasons:
Culture
Health Care Costs
Resilience
Innovation
Productivity
Customer Service
Creativity
Stress Reduction
SafetyTeamwork
Leadership
Recruitment/Retention
Employee Well-Being
Compassion for employees
Mental Health Awareness

7. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Mind-Training is Being Adopted by Different Distribution Systems
Org. Type Some of top reasons for adoption
Corporations Resiliance, Productivity, Stress Reduction
Insurers Customer Demand, Improved Outcomes, Cost
Health Care Patient Experience, Improved Outcomes, Cost
Military Cognitive Dominance, Focus, Resiliance
Sports Performance, Focus, Competitive Edge
Education SEL, Classroom Environment, Focus

8. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Mind-training is Increasingly Being Proven to Help Medical Conditions.
Irritable Bowel Syndrome
Pain Management
Anxiety
Depression
Cardiovascular disease
Diabetes
ADD/ADHD
Arthritis
PTSD
Cancer
Addictions
Obesity Schizophrenia
Insomnia

9. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
How Organizations are Accessing Mind-Training Solutions
There are many ways organizations are accessing…
• Live Experiences: In person training, Physical Studios, Retreats, Conferences,
Sensory Deprivation Tanks
• Virtual Experiences: Live online classes, Virtual Reality, Online meditation rooms
• Novel Tools/Solutions : Hardware, Apps, Games
• Benefits Providers: EAP, Insurers, Benefits Consultants
….and many access points within organizations
• Human Resources Departments
• Team Leaders
• Learning and Development Departments
• Health and Wellness Groups
• Performance & Executive Coaches

10. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Successful Mind-Training Companies Will Build Engaging Platforms
and Some Will Start by Targeting High Value Conditions.
Community
Coaching
Feedback
UX
Content
Examples: Akili, Pear Therapeutics, Cansurround
Prescription
Research
UX
Content
Research
Platforms High Value Conditions
Examples: eMindful, Happify, Insight Timer, Lumosity

11. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Market Segments
Mind Training Segments
Well-Being Apps – B2C
Well-Being – B2C
Brain Training Games & Platforms
Rx Digital Therapeutics
Wearables
Digital Therapy
Digital Cognitive Assesment
Retail
Experiences
Conferences

12. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
State of the Segment
Crowded, 1000+ apps, growing, not always a lot of differentiation, lots of media hype
• Estimated 18-45 M Americans meditating.
• Competition based on price, UX,
instructors.
• Cost of acquisition, churn major factors.
• Growing revenue & financing bases
• Headspace est. $250 M valuation,
has raised $75 M
• Calm: $25 M raise at $250 M in
March 2018
• Insight Timer 300 K meditations/day
• New entrants trying to capture either more
niche markets or get better teachers.
• Recent new apps are for millenials, sports
teams, expecting mothers, etc.
• Some do B2B2C deals – with airlines,
hotels, media, etc.
• Hype – ex: Simple Habit on Shark Tank
• Several are working on how to incorporate
with wearables or virtual reality
Well-Being Apps – B2C Segment
Insight Timer Meditation Studio
10% HappierStop, Breathe,
Think
Simple Habit
Headspace
OmvanaMindfulness App
BuddhifyCalm
• 3 Major Teacher Models
• One guru, chance to get very
wealthy
• 20-30 teachers, with promise of
large financial gains (some abuse,
rumored lawsuits, exclusivity
demanded)
• Platforms FOR teachers: (Insight
Timer 1,900 teachers).

13. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Well-Being – B2B Segment
• Google “cool” factor- lots of PR
• Non-Profit
• CEO transition to Rich Fernandez
• Raising non-profit round?
• Evidence based sleep program
• Creating better mental health
• $12 M raise – 7/16
• Mainly in-person trainings
• Great global corporate partnerships
• Globally organized
• Non-profit
• 2 RCTs (best science)
• Insurer & employer relationships
• Online live platform w/ live classes
• Behavioral Health Platform
• Successful insurer & Fortune 500 relationships
• High engagement results
• $9 M 2017 from Triple Tree
• Raised $9 M 2015
• Focuses on resiliance– early mover
• Customer retention spotty
• Hired Louis Gagnon as CEO (Amazon)
• Publicly traded (Australia)
• Raised $20 M 2018
• Partnership with TLEX
• Founded by Arianna Huffington
• Large multi-year contracts
• $45 M Series B w/ well known investors
• $120 M valuation
• Media property for wellness, focus on sleep
• Physical tools and 3rd party partnership platform
• Digital resilience, mindfulness, sleep
• Success in getting pilots & Virgin Pulse
• Employee & contractor issues
• $13 M in 2014 (Chip Wilson of Lulu Lemon funder)

14. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Well Being – B2B Segment (continued)
• B2B Demand
• Many pilots now turning into scaled solutions
• Most companies are now showing interest or
have purchased from suppliers in the market
• Results are key determinant of future demand
• Multiple parts of the organization may access
• Large orgs want global solutions
• Demand can come from withing different parts of
organization – HR, Team Leaders, Wellness,
Leadership & Development
Product Offerings
• More firms swithcing to more platform approach
addressing multiple needs
• Companies do not want multiple relationships, but
1-2 that address largest issues
• Some buyers are developing their own programs
• Terminology is crucial for the sell – it’s important
to fit a solution into the culture of buyers.
• Services include such things as in-person, online,
online live…with more people adding community
features and coaching services.
• Product pricing normally PEPM but increasingly
pricing is shifiting to engagement pricing models.
Competitive Dynamics
• Firms compete on engagement, pricing, scientific
results, needs of corporation, customer service
• Many small players provide live experiences or
regional corporate programs
• Currently, some describe market as a land grab
• Has not been a lot of head to head competition
yet. That’s beginning to shift.
• There are seveal non-profits in this segment.
• Most companies push the front end of science
and don’t have great back end science.
• Sales Cycles
• Long sales cycles
• Normally, companies have to pilot first
• Low churn if products are working, once in place
it’s the suppliers business to lose.
• Investment
• Companies in the space have attracted significant
levels of investment
• Even non-profits in the space have been thinking
of raising capital

15. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Brain Training Games/Platforms:
State of the Segment
• Most developed segment,
several companies at later
stages.
• Larger customer acquisition
budgets.
• Propositions sold on fear
• (in some cases) of cognitive
decline or on benefits of
keeping brain active. Some
focus on performance.
• Significant financing and
acquisitions in this category.
• Controversy around science of
some solutions – Lumosity fined $2
M in 2016 by FTC for deceptive
advertising. 3rd party study could
not confirm efficacy in 2017
• Some companies appear to have
very strong science.

16. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Rx Digital Therapeutics
• Pear first FDA approved software
– reSet has changed the game
for the entire industry
• Several large recent financings
• Pear - $25 M Series B
• Akili - $55 M series C
• Propeller Health – $20 M
• Partnerships with Insurers (Click
Therapeutics/Magellan) with path
to reimbursement
State of the Segment
• Science is key underpinning, w/
randomized control trials
needed and studied for
conditions
• Like biopharma, rich amounts
of investment in RX at large
pre-revenue valuations
• LT consumer adoption/usage
still unkown, and medical
system will need significant
training
• Headspace announced Health
Susidiary & likely FDA path
• Still uncertain how patients will
engage once launched as Rx
• Like drug companies, some
developing pipeline of Rx
Software for various conditions
• Several pharma companies are
signing partnership agreements
or making investments in the
segment

17. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
State of the Segment
• Various segments and form
factors.
• Crowded field - can be hard to
find points of difference.
• Capital intensive,
manufacturing risk, distribution
& selling risk, need software
solutions.
• Integration happening with
other apps.
• Uninstalled base – VR
• Low penetration of wearables
• Sometimes software
developed open source by
others.
• Retail has been focused on
fitness wearables, this is new
segment – lots of training.
• Data may turn out to be very
valuable to corporations.
• Research being done using for
treating medical conditions.
Wearables Segment
SENSELabs
Patches VR EEG Sensors in Strips HRV Bracelets Rings Holdables Glasses

18. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
State of the Segment
• Digital therapy by therapists, coaches, and even bots are increasing
access to solutions at lower cost with more convenience.
• Assessment tools including use of data from phones, voice, movement,
is increasing abilities to predict and assess conditions without having to
have physical doctor visit
Other Segments
Digital Therapy Digital Cognitive Asssessment

19. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
State of the Segment
• Retail segment beginning to grow, and major retailers beginning to put
mind training on the shelves.
• Several groups have looked at building national meditation studios or
brain fitness retail outlets (none is yet past one location/city).
• Conferences are continuing to grow audiences, more conferences
forming.
Other Segments
Retail Experiences Conferences

20. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
The Mind-Training Industry’s Major Centers are Globally Distributed
San Francisco
Tel Aviv
New York
London
Seattle
Sydney
Helsinki
Singapore
Vancouver
Other CentersMajor Centers
Boston
Boulder
Toronto
Los Angeles

21. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
One View of How it all Fits Together for Mind-Training
Source: TheSharpBrains Guide to Brain Fitness: How to Optimize Brain Health and Performance at Any Age

22. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Reflections as Mind-Training Grows:
According to IHRSA, the physical fitness industry
grew from $20.3 B in 2010 to $24.2 B in 2014…
...And the state of health in America
has never been worse
“Mindfulness is quickly following yoga in
becoming a billion-dollar industry.”
- Emma Seppälä – HBR, Dec 14, 2015
... How do we not repeat physical fitness
pattern of increased industry growth
and declining outcomes

23. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
“Problems cannot be solved at the same level of
awareness that created them.”
Albert Einstein

24. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Mindfulness
Self-Awareness
Understanding
Human Conditioning
Behavior Change
Impacting
Greater Good
Current
Industry
To Improve Well-Being, Society Needs to Build Bridges in Mind-Training.
Bridge Builders
Collaborative
Evolve
Ventures
Healing Trauma
Changing Stories

25. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Caring for the
body
Tending the
mind &
emotions
Having
meaningful
relationships/co
mmunity
Knowing your
purpose
Impacting the
greater good
A Framework for Well-Being

26. Copyright: 2018 Charlie Hartwell, ShiftIt Institute
Partner
Bridge Builders Collaborative invests in companies providing mind-training solutions
that help people connect more deeply to themselves. We are interested in companies that can
help people improve their mental, emotional, physical, spiritual health by training their own minds
and taking responsibility for their well-being.
How We Evaluate Opportunities
High growth businesses with a minium of $1 M in revenue
Authentic, collaborative leaders who are willing to partner with investors
Strong point of difference
Scientific validation where appropriate
Clear focus and expertise on relevant distribution channels
Path to positive cash-flow that we can believe in