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Therapy enablement: State of play

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Apr 17, 2024
Data: PitchBook; Note: 2024 data as of April 10; Chart: Axios Visuals

Therapy startups handling administrative work for providers and payers are pulling in venture dollars.

Why it matters: The therapy enablement sector has expanded to keep up with the increasing demand for mental health services, despite an overall drop in the digital health funding sector.

The big picture: The U.S. Preventive Services Task Force released new guidelines urging adults ages 19 to 64 be screened regularly for anxiety and the National Alliance on Mental Illness found 1 in 5 adults experience mental illness each year.

  • Investments in mental health companies peaked in 2021 and saw $2.1 billion in venture capital raised in 2023.

Activity in the sector in the past 12 months includes:

  • Grow Therapy, a tech-forward therapy startup, in April raised an $88 million Series C led by Sequoia Capital.
  • Headway, a startup that links people with in-network mental health providers, raised $125 million in Series C funding on a $1 billion valuation in October 2023. The deal marks one of the largest funding rounds in the last year among mental health startups, per PitchBook.
  • Being Health, a psychiatrist-founded mental health platform, raised $5.4 million in seed funding in January 2024.
  • Turquoise Health, a San Diego-based health care pricing platform, raised $30 million in Series B funding in January.
  • Verifiable, a healthcare credentialing and compliance platform, raised $27 million in Series B funding in July 2023.
  • Chicago-based Blueprint, a developer of patient tracking and assessment tools for mental health clinicians, closed a $9 million Series A in June 2023.
  • Heard, which handles administrative tasks for behavioral health providers, in June 2023 raised $15 million following a $10 million Series A.
  • Boston-based therapy voice analysis startup Eleos Health banked a $40 million Series B in November 2023.
  • Nema Health, a virtual trauma therapy provider, in November raised $4.1 million in seed funding.
  • TARA Mind, a company offering psychedelic-assisted therapy, raised $3 million in pre-seed funding in May 2023.
  • Spring Health, a company offering digital mental health care and navigation services, raised $71 million in funding in April 2023.
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