According to Crunchbase, funding for mental health-focused startups surged starting in 2020, with substantial investments going to companies developing telehealth services, AI-enabled platforms, and targeted solutions for specific groups, such as teenagers or the elderly.
While investment levels have tapered off since the peak in 2021, steady deal flow and significant funding rounds continue. Crunchbase highlights the following industry trends:
A major theme among the largest investments this year is an emphasis on providing mental health care covered by insurance.
Startups focusing on specific problems are trending, rather than those attempting to address everything at once.
Substantial funding rounds go for startups developing advanced screening tools.
Examples of companies that closed large funding rounds in the spring:
Two Chairs - $72 million: Matching patients with suitable therapists based on their needs.
InStride Health - $30 million: Outpatient treatment for childhood anxiety.
Backpack Healthcare - $14 million: Providing psychiatric help to children through insurance for low-income families.