Venture funding has increased substantially in digital mental health apps (focused on behavioral health, depression, anxiety, isolation, and stress) with $1.2 billion during 2020, a 50% increase compared to $800 million raised in 2019, according to Mercom’s digital health funding data.
According to a Centers for Disease Control and Prevention report, mental health among the population has been negatively impacted by the COVID-19 pandemic. The report found that during August 2020-February 2021, the number of people who experienced symptoms of anxiety or a depressive disorder (due to pandemic) increased from 36.4% to 41.5%, and the percentage of those reporting unmet mental healthcare needs increased from 9.2% to 11.7%.
Top digital mental health funding deals in 2020
Lyra Health, a provider of mental health benefits for employers, raised $110 million in a Series D financing round led by Addition. Other investors include Adams Street Partners, Casdin Capital, Glynn Capital, Greylock, Institutional Venture Partners, Meritech Capital Partners, Providence Ventures, Tenaya Capital, and Howard Schultz (Starbucks chairman emeritus and former CEO). More recently, Lyra Health announced a Series E financing round of $187 million. Founded in 2015, Lyra Health Raised nearly $500 million to date.
Mindstrong, which offers text-based 20-minute cognitive behavioral therapy for people living with mental illness, raised $100 million in a Series C funding round from General Catalyst, ARCH Venture Partners, Foresite Capital, 8VC, Optum Ventures, and What If Ventures. Founded in 2014, Mindstrong has raised over $150 million to date.
Spring Health, a digital mental health benefits program (includes digital exercises, coaching, therapy, medication, and employee assistance program services) for employees offered through employers, closed a $76 million Series B funding round led by Tiger Global. Spring Health has raised $106 million to date, including a $22 million Series A round in January 2020.
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. 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. Recently, Modern Health closed a $74 million Series D funding round led by Founders Fund. The latest raise brings Modern Health’s total funding to more than $170 million and valuation to $1.17 billion.
Ginger, a provider of on-demand mental health services through its app, raised $100 million in a Series E financing round led by funds managed by Blackstone Growth. Including the Series E round of funding, the company has raised over $220 million to date.
Digital mental health apps have raised $4.2 billion since 2011, according to Mercom’s funding data.
