Modern Health, a digital mental health and wellness platform, raised $51 million in a Series C funding round at a valuation of over $500 million.
The Series C funding round brings the company’s total to almost $100 million to date.
Battery Ventures led the Series C investment round, with participation from Felicis Ventures and Kleiner Perkins, Founders Fund, 01 Advisors, Afore Capital and Frederic Kerrest.
Modern Health provides mental health benefits like therapists, coaches, and digital tools to employees through their employers. The company’s clients include Pixar, SoFi, Okta, Carta, Electronic Arts, Rakute, Clif Bar, Zendesk, Udemy, and TripActions.
Modern Health plans to use the latest funds to meet accelerating demand for its mental health services, expand its global provider network from 35 languages to 50+, and provide new, innovative solutions to support healthy workforces worldwide.
“With a shortage of therapists and rising costs blocking access to support, the mental health industry is reaching its breaking point. At Modern Health, we are dedicated to destigmatizing mental health in the workplace and ensuring as many people as possible get cost-effective mental health care,” said Alyson Watson, founder, and CEO of Modern Health. “Every employee should have equal access to quality mental health support – and we will continue to expand our offering to respond swiftly to demand.”
Meanwhile, mental health remains top of mind for employers, especially during the global pandemic. COVID-19 has worsened an existing mental health crisis, the company said, “Employers are waking up to the fact that their medical claims costs were already heavily driven by mental health issues going unaddressed,” said Herscher.
“The pandemic is shining a spotlight on a larger problem, and the companies who address it now will be the ones who keep costs under control and deliver successful profits moving forward. Modern Health’s innovative solution addresses urgent disparities in mental health care access and delivers personalized care recommendations to meet individuals where they are. It’s an absolute honor to join this visionary company as it grows.”
According to Mercom funding data, digital mental health startups have raised over $1 billion in the past five years. Recently Koa Health – previously known as Alpha Health, a digital mental health platform, closed a $16.5 million Series A funding round, bringing the company’s total to $35 million to date.