Stellar Sleep, a pioneering startup offering a digital solution for managing chronic insomnia, has successfully secured $6 million in seed funding.
In the United States alone, poor sleeping habits not only pose a substantial economic burden, amounting to hundreds of billions of dollars, but also contribute to severe health issues such as heart disease and depression.
While numerous apps and devices exist to assist individuals in tracking and monitoring their sleep patterns, Stellar Sleep’s co-founders, George Wang and Edrei Chua, recognized a gap in the market. They observed that many existing solutions catered to individuals with occasional sleep disturbances rather than addressing the needs of those suffering from chronic insomnia, characterized by sleep problems occurring three or more nights a week for over three months.
Both Wang and Chua have personal experiences with chronic insomnia and encountered lengthy wait times, ranging from six months to a year, to consult with sleep clinicians. Determined to find a solution, they delved into sleep therapy—a psychology-based approach designed to identify the underlying causes of insomnia.
“The primary approach should be psychological,” Chua emphasized. “However, patients are often faced with the dilemma of being prescribed medication or enduring extended wait times for consultations, neither of which offers a sustainable solution to address the root cause of the issue.”
Stellar Sleep’s mobile application leverages this methodology to assist users in breaking the cycle of sleepless nights. Backed by a clinical assessment of 500 users, the app demonstrated a 50% higher efficacy rate compared to conventional sleeping pills.
Here’s how the app operates: Users download the application, create an account, and complete an initial assessment, enabling Stellar Sleep to gain comprehensive insights into their sleep challenges. The app integrates various techniques, including cognitive behavior therapy, acceptance and commitment therapy, and motivational interviewing.
Priced at $60 per month, the app allows users to synchronize their wearable devices. Stellar Sleep then tailors a personalized, interactive program to guide users daily in relearning healthy sleep habits. The program adapts over time, providing additional customization based on users’ sleep metrics.
The recent funding round marks Stellar Sleep’s inaugural institutional investment. Initialized Capital led the round, with participation from Y Combinator, Lombardstreet Ventures, Switch Ventures, Moonfire Ventures, Scrum Ventures, 8vdx, and Goodwater.
Wang and Chua plan to utilize the new capital to expand the app’s content and curriculum offerings. Additionally, they aim to establish more partnerships with clinicians to gain insights into patient practices, thereby enhancing the user experience through further personalization.
“We are committed to enhancing our product to ensure that we can assist individuals dealing with chronic insomnia, regardless of the underlying causes or their current circumstances,” Wang affirmed. “Our goal is to extend this program to as many people as possible and bolster our distribution channels.”