Mental Health Innovation Update
July 9, 2023 - Weekly Update
I’ve gotten lots of requests for a summary on industry updates & news. So I’m going to start sending this out on a regular basis. This isn’t meant to be comprehensive. Reach out if you’d like an update sent to the community!
Headspace Hit With More Layoffs, Sparking Concerns About Big Tech & Mental Health
https://athletechnews.com/headspace-layoffs-spark-big-tech-mental-health-concerns/
Notes: Headspace intends to reduce its workforce by 15% (181 employees), aiming for positive cashflow next year. Formed from the merger of meditation app Headspace and mental health company Ginger, Headspace Health has since acquired startups like Sayana and Shine app. The firm plans to extend its clinical care services to the UK and other international markets in 2023. Calm (a competitor) has also made similar staff reductions. The past year has been tough for digital mental health providers, with several firms announcing layoffs and a 56% decrease in funding. However, some positive development in terms of funding, like hybrid care provider Octave securing $52 million in Series C funding, and digital platform Spring Health raising $71 million.
Talkiatry and Transact Campus Join Forces to Bridge Campus Mental Health Gap
Notes: Talkiatry, a national provider of in-network psychiatric care, and Transact Campus, a company in mobile credential and payment solutions, have announced a partnership aimed at addressing the mental health crisis on college campuses. They will provide students with affordable, accessible mental health support, with Talkiatry's services available via Transact's mobile app. Amid growing mental health concerns among students, especially during the COVID-19 pandemic, this partnership will enable universities to provide high-quality psychiatric support, ensuring students can manage their mental health effectively. Talkiatry offers prompt, insurance-covered services with specialized psychiatrists, while Transact Campus serves over 12 million students across 1,800 institutions, facilitating a substantial volume of payments and mobile transactions annually.
Heading Health Raises $4.5M in Series A Funding
https://www.finsmes.com/2023/06/heading-health-raises-4-5m-in-series-a-funding.html
Notes: Heading, a mental health company co-founded by Steve Levine, MD and CEO Simon Tankel, has raised funding in a round led by Gron Ventures and Jam Fund. Additional participants include One Mind Accelerator, Thiel Capital, Mystic Ventures, Gaingels, and Antifund. The funds will be utilized to facilitate Heading's expansion into new markets and enhance its care delivery and analytics platform. Established in 2020, Heading merges evidence-based practices with personalized treatment plans, providing a spectrum of in-network mental health services for complex conditions. This includes interventional psychiatric services like intramuscular ketamine, Spravato, and TMS. Currently operational in Austin and Dallas-Forth Worth, Heading plans to broaden its reach within Dallas and initiate its presence in Houston within the year.
Kooth Raises Funds via Premium Share Placing; Lifts Guidance on New California Contract
Notes: Kooth plc, a digital mental health and wellbeing platform, has signed a four-year contract worth $188m to provide services to six million youths aged 13-25 in California. The platform is set to launch in January 2024, with the company planning to hire over 200 staff in the next year to build its infrastructure in California and the broader US. This initiative is part of California's $4.7 billion investment in youth behavioral health. As a result of the contract, Kooth expects an upgrade in its 2023 revenue guidance to at least £34m, up from £20.1m in FY2022. To expedite platform development and international expansion, Kooth plans a share placing to raise about £10m. The platform will offer culturally relevant content in multiple languages and professional support through chat, messaging, video, and phone, aided by artificial intelligence for personalization, risk detection, and moderation.
Digital Mental Health Startup Raises $1.2M Pre-Seed to Expand Culturally-Responsive Care
Notes: Anise Health, a digital mental health company that caters specifically to people of color, particularly Asian Americans, has raised $1.2M in a pre-seed round. The round was led by Kicker Ventures, and included participation from Gold House Ventures, Allston Venture Fund, and strategic angel investors. Founded by two female Harvard Business School alumni, Anise Health launched in California in 2022, providing culturally-responsive mental health support. The company is now expanding to New York, and broadening payor partnerships to make its treatments more accessible. Anise Health's unique care model includes online therapy, coaching, and self-guided resources tailored to address cultural stressors, with a provider team trained in cultural sensitivity.