Startups taking new approaches to mental-health care are raising millions. Here are the 10 frontrunners to know.
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- Startups want to change how mental-health care is provided.
- Companies like Lyra and Spring Health have raised hundreds of millions of dollars from VCs.
- The 10 startups on this list have raised a collective $2.7 billion in recent years.
Startups have raised hundreds of millions of dollars in recent years to change how mental-health care is provided.
While some companies partner with employers to offer mental-health-related benefits, others focus on providing therapists with tools to set up and run their own practices. Consumer-focused startups, meanwhile, onboard practitioners so they can connect with new patients directly, whether virtually or in person.
In 2021, venture-capital firms deployed $3.7 billion into mental-health startups across 342 deals, more than double what they’d invested the year prior, according to PitchBook. Funding slumped in 2022, when companies garnered about $2.6 billion. So far in 2023, mental-health startups have raised $300 million from VCs.
Insider looked at PitchBook funding data from 2018 to 2023 to identify the mental-health care companies that have raised the most funding. We reached out to each company to confirm funding information and other details.
Collectively, the 10 startups on this list have raised $2.7 billion since their inception.
Here are the 10 startups that have raised the most money to change mental-health care, listed by amount raised:
Big Health — $128 million
Located: San Francisco
Last disclosed fundraise: $75 million Series C in January 2022
About: Big Health says it’s focused on “non-drug options for mental health.”
The company has two main digital therapeutics for common conditions: Sleepio for insomnia and Daylight for anxiety.
Big Health’s Series C round was led by SoftBank Vision Fund 2. The company said last year that it planned to use the funds to launch six more therapeutic options by 2024.
Modern Health — more than $170 million
Located: San Francisco
Last disclosed fundraise: $74 million Series D in February 2021
About: Modern Health offers employers mental-health-care services such as clinical therapy and medication management. The company says its clients include Lyft and Pixar.
An analyst told Insider in August that companies such as Modern Health offering mental-health-related benefits to employers were “low-hanging fruit for the tech and retail titans to scoop up and dominate the B2B and B2C markets.” The company said in 2021 that it had raised over $170 million.
Modern Health didn’t respond to Insider’s request for comment.
SonderMind — $183 million
Last disclosed fundraise: $150 million Series C in July 2021
About: SonderMind connects patients to therapists virtually or in person. The company says its licensed therapists are in network with most major insurers.
In March, SonderMind bought the technology assets of the digital mental-health-care company Mindstrong.
Headspace Health — $215.7 million
Located: Santa Monica, California
Last disclosed fundraise: $100.7 million Series C in June 2020
About: Headspace Health offers coaching, psychiatry, and meditation resources.
In 2021, Headspace merged with the behavioral-health company Ginger, which had raised $220 million. A spokesperson for Headspace said that combined, the two organizations had raised north of $400 million.
Alma — $220.5 million
Located: New York
Last disclosed fundraise: $130 million Series D in August 2022
About: Alma says it connects therapists to patients and helps therapists handle tasks like accepting insurance. The company started out as a coworking space for therapists but adjusted its strategy when the pandemic hit in 2020.
Last summer, its CEO, Harry Ritter, said that Alma had over 7,000 providers on its platform and that the vast majority of sessions were covered by insurance.
Spring Health — $300 million
Located: New York
Last disclosed fundraise: $190 million Series C in September 2021
About: Spring Health says it uses machine learning and algorithms to help match patients to personalized mental-health care. The company says members can match and connect with a therapist in two days on average.
In August, analysts said Spring Health set itself apart from competitors by using artificial intelligence and identified it as a possible target for a merger or acquisition. They added that the company could also decide to expand independently.
In September 2021, Spring Health said it was valued at $2 billion.
Cerebral — $462 million
Located: Claymont, Delaware
Last disclosed fundraise: $300 million Series C in December 2021
About: Cerebral offers online therapy and medication for mental illnesses like depression and anxiety.
The startup in 2021 described itself as the fastest-growing mental-health company, raising hundreds of millions from top investors like SoftBank. Cerebral came under scrutiny in 2022 over its practices for prescribing potentially addictive medications online and its treatment of patients with serious mental illnesses. The company faces investigations by the Drug Enforcement Administration and the Department of Justice.
In June, major insurers removed Cerebral from their networks. In February, the company cut 15% of its staff in what was its third round of layoffs in less than a year.
In May, Cerebral replaced its CEO, Kyle Robertson, a cofounder, with Dr. David Mou.
Lyra Health — $906.8 million
Located: Burlingame, California
Last disclosed fundraise: $235 million Series G in January 2022
About: Lyra Health works with employers to offer mental-health-related benefits such as teletherapy, meditation videos, and medication management.
In August, analysts told Insider the company could become part of an M&A deal over the next year — either as a deep-pocketed buyer or an attractive but expensive target. Lyra had a valuation of about $5.6 billion at the time of its last funding round.