Digital Mental Health Startup Rey Raises $10 Million in Funding

Rey, a teletherapy startup offering mental health and wellness, announced $10 million in new funding, increasing their Series A to a total of $26 million with the round led by Optum Ventures and Oxford Sciences Innovation.

According to Rey, the new funding will help it expand its consumer reach, personalized healthcare services, and technology platform.

“Mental and behavioral health care is rapidly becoming destigmatized, which is great. But that means there is a growing need and reliance on providers to provide this care, which may drive up costs,” said Mike Desjadon, the chief commercial officer of Rey. “Through our innovative digital care approach, we can flip the script and provide more personalized care at an affordable price to treat a variety of mental health needs.”

Launched in April 2021, Rey is a membership-based digital mental health platform. Rey offers mental health and wellness by combining cognitive behavioral therapy, talk therapy, medication, and clinically validated tech tools, such as virtual reality, to help its clients achieve mental health and wellness.

“With a big focus on the expansion of online mental health services, the challenge now is for companies to meet the demand,” said Deepak Gopalakrishna, founder and chief executive officer of Rey. “We’re integrating validated and innovative therapeutic tools with well-trained providers to ensure people have access to the high-quality care they need while keeping costs low and preventing provider burnout.”

Telehealth companies raised a record $5 billion in 1H 2021, a 150% increase year-over-year compared to $2 billion raised in 1H 2020, according to the recently released Mercom’s 1H 2021 Digital Health Funding and M&A Report. Lyra Health, a provider of mental health benefits for employers, completed a $200 million financing round. Coatue led the round and was joined by new investor Sands Capital, along with existing investors.