-By ArdorComm News Network
August 1, 2024
Mental health funding has been as hot as the weather these past few weeks. Spring Health became the latest startup in the sector to raise big, locking up a $100 million Series E at a $3.3 billion valuation — a 65% increase from the $2 billion valuation it received in 2021 after a $190 million Series C.
The new round was led by Generation Investment Management, with participation from existing investors including Kinnevik, The William K Warren Foundation, RRE Ventures, and Northzone. Founded in 2016, the company has raised nearly $467 million, per Crunchbase.
New York-based Spring Health partners with employers to provide mental health services to their employees. The company also uses artificial intelligence to help members get care faster.
“Our continued growth trajectory means more people are getting the care they need and this new funding allows us to double down on our strengths, increase access, scale our impact, and continue to deliver even greater ROI to employers,” said co-founder and CEO April Koh in a release.
Mental Health Funding Ticking Up
Just in the past several weeks, mental health has seen its biggest raises of the year. Along with Spring Health, New York-based Talkiatry, a psychiatric care startup, picked up $130 million in mid-June. The round consisted of a combination of Series C equity financing led by Andreessen Horowitz, and debt financing from Banc of California.
Then just last week, mental healthcare platform Headway closed a $100 million Series D led by Spark Capital. The new funding values the company at $2.3 billion — a 130% increase just from October when it raised a $125 million Series C at a $1 billion valuation.
While well off its 2021 high, mental health funding has remained relatively stable this year.