Startups are determined to solve mental health.
Off the charts. A bright spot in a challenging fundraising climate, $682M VC dollars went toward digital mental health in H1 2024.
The funding surge coincides with concerning stats on America’s mental state.
- In 2022, the US recorded its highest-ever number of suicides.
- From ’21–’22, almost a quarter of US adults experienced mental illness.
- In the past year, 20% of 12–17-year-olds had a major depressive episode.
While stigma is dissolving, access to care remains a problem — with 25% of adults and over 50% of kids skipping treatment due to cost.
Headcount. Spring Health and Headway both secured $100M last month, valuing the digital mental health platforms at $3.3B and $2.3B, respectively.
Taking tech-enabled approaches, companies are racing to stem the crisis.
- March: Brightside Health raised $33M, and Pelago added $58M for addiction treatment.
- April: In Series C rounds, Grow Therapy added $88M and Two Chairs landed $72M.
- June: Talkiatry raised $130M in a Series C led by a16z.
Of note, all are prioritizing in-network care for diverse populations. Charging out-of-pocket, BetterHelp posted $838M in Q2 losses and will pivot toward accepting insurance to rebound.
Looking ahead: From scaling apps and teletherapy to promoting social fitness and youth sports, fostering a mentally healthy country will require investment on all fronts.