Mental Health Tech

New technologies are opening up mental health services to previously overbooked and underserved populations.

Overview

Making mental health services accessible and affordable

Mental health tech refers to services that help treat mental health conditions via mobile and/or online platforms. A main function of mental health tech platforms is to connect physicians and practitioners directly to patients without barriers such as a lack of proximity, prohibitive cost, or long wait times in the doctor’s office.

The mental health tech ecosystem is broad and includes telepsychiatry platforms, digital therapeutics, monitoring/measuring tools, and peer to peer apps. Telepsychiatry is at the forefront of the industry, and has been gaining traction with a growing number of users. Monitoring/ measuring tools follow, but the services have yet to see mass adoption. Digital therapeutics (software-based therapeutic interventions given directly to patients for preventing, managing, or treating mental disorders) is an emerging segment with just a few successful product launches, but it shows great potential.

What's driving this industry?

Industry Updates

Grow Therapy raises USD 15 million in Series A funding
Sep 23
Meru Health raises USD 38 million in Series B funding
Sep 23
NOCD raises USD 33 million in Series B funding
Sep 22
View all updates
Market Sizing

The US telepsychiatry market size could reach USD 4.9-8.7 billion by 2025

Conservative case

USD 4.9 Bn

19% penetration
Base case

USD 6.8 Bn

27% penetration
Expansion case

USD 8.7 Bn

33% penetration
USD million1,0002,0003,0004,0005,0006,0007,0008,0009,0002019202020212022202320242025
View details

COVID-19 IMPACT

Talkspace: 25% increase in user volume from mid-February to May 2020. 23% YoY increase in app installation reported in September 2020. 

Betterhelp: A doubling of users reporting stress and anxiety between Feb and March 2020.

Ginger: 159% increase in usage of its text-based mental health coaching service over pre-pandemic levels. 302% increase in virtual therapy and psychiatry sessions over pre-pandemic levels. 

Neuroflow: Expanded customer base 10x to 330,000 registered users by the end of 2020.

Lyra Health: More than doubled membership to 1.5 million users between February and August 2020.

Market Mapping

Incumbents in the industry deliver telepsychiatry services as part of their telemedicine services while disruptors specializing in mental health tech have successfully established their foothold in the market mainly due to the increasing number of mental health patients. Most of the disruptors are concentrated in the telepsychiatry segment, given its popularity of facilitating live interaction sessions with psychiatrists as an alternative to in-person doctor visits.

Incumbents
Growth
Early
Seed
Pre seed
Telepsychiatry Platforms
?
Monitoring and Measuring Tools
?
Digital Therapeutics
?
P2P Support Tools
?
HealthRhythms
HealthRhythms
HealthRhythms
HealthRhythms
Teladoc Health
Amwell
MDLive
Lyra Health
Talkspace
Spring Health
Ginger
SonderMind
Cerebral
Mindstrong
Quartet Health
Headway
Alma
Unmind
AbleTo
Mantra Health
Wellin5
MindRight Health
Cloud 9
Groups Recover Together
Meru Health
Monument
Concert Health
Boulder Care
Zenklub
ifeel
Joon Care
Coa
Zenovate
Eleanor Health
Talkiatry
Lucid Lane Inc.
Ophelia
Real Therapy
Healios
PursueCare
Valera Health
HelloSelf
Ahead
Calmerry
Hurdle
wayForward
Spill App
Pace Group Inc.
Done
First Session Health Inc.
Reviving Mind
Daybreak Health
Ayana Therapy
Livongo
Integrated Behavioral Health, Inc. (IBH)
Therapy Brands
NeuroFlow
BrainCheck
Osmind
Blueprint
HealthRhythms
Clarigent Health
Rose
Nirvana Health
Akili Interactive Labs
Pear Therapeutics
Modern Health
Koa Health
MindBeacon Software Inc.
Healthy Quit
Click Therapeutics
BlackThorn Therapeutics
Happify Health
Woebot Health
Quit Genius
Big Health
Cognoa
AppliedVR
Freespira
Equip Health
Mightier
Wysa
Blue Note Therapeutics
Limbix
BehaVR, LLC
Youper
UpLift Health
Reframe
Cognito Therapeutics
7 Cups
Sober Grid
Togetherall
TalkLife
MentalHappy
Arli
Supportiv
ForLikeMinds

The Disruptors

Monitoring and Measuring and Telepsychiatry Form the Bulk of Mental Health Tech Disruptors while Digital Therapeutics Lead in terms of Funding

The mental health tech space currently has around 340 startups comprising telepsychiatry platforms, digital therapeutics, monitoring/measuring tools and peer-to-peer apps (the segments focused on in this report). By numbers, monitoring and measuring and telepsychiatry form the bulk of the sector’s startups. In terms of funding, however, digital therapeutics takes the largest share, despite its smaller number of startups. Digital therapeutics’ larger funding share could be explained via its products’ prescription-based nature, which calls for heavy investments before passing stringent regulatory compliance.

Telepsychiatry Platforms

?

Disruptors

?
Funding in USD Millions
Lyra Health
675
Talkspace
414
Spring Health
296
Ginger
221
SonderMind
183
Cerebral
162
Mindstrong
160
Quartet Health
160
Headway
101
Alma
91
Unmind
63
Groups Recover Together
60
Meru Health
51
AbleTo
47
Eleanor Health
32
Talkiatry
20
Monument
18
Ophelia
18
Real Therapy
16
Concert Health
15
Boulder Care
14
Healios
13
PursueCare
13
Zenklub
12
Valera Health
12
ifeel
10
Ahead
9
Calmerry
5
Hurdle
5
Wellin5
1
Cloud 9
Unknown
Done
Unknown
Watchlist
?
Lucid Lane Inc.
HelloSelf
Mantra Health
wayForward
Spill App
Joon Care
Coa
Daybreak Health
Pace Group Inc.
Zenovate
MindRight Health
Ayana Therapy
First Session Health Inc.
Reviving Mind

Monitoring and Measuring Tools

?

Disruptors

?
Funding in USD Millions
NeuroFlow
31
BrainCheck
15
Nirvana Health
8
Therapy Brands
Unknown
Watchlist
?
Osmind
Blueprint
HealthRhythms
Clarigent Health
Rose

Digital Therapeutics

?

Disruptors

?
Funding in USD Millions
MindBeacon Software Inc.
Public - Market cap USD 115.1 mn
Click Therapeutics
859
Akili Interactive Labs
301
Pear Therapeutics
284
Modern Health
167
BlackThorn Therapeutics
138
Happify Health
119
Woebot Health
114
Quit Genius
79
Big Health
54
Cognoa
54
Koa Health
53
Blue Note Therapeutics
47
AppliedVR
35
Freespira
20
Equip Health
17
Limbix
16
Mightier
12
Wysa
9
Watchlist
?
BehaVR, LLC
Youper
UpLift Health
Healthy Quit
Reframe
Cognito Therapeutics

P2P Support Tools

?

Disruptors

?
Funding in USD Millions
Togetherall
10
Supportiv
0
7 Cups
Unknown
Watchlist
?
Sober Grid
TalkLife
MentalHappy
ForLikeMinds
Arli

Lyra Health

Lyra Health provides behavioral healthcare solutions that include an online telepsychiatry platform with access to a network of therapists and psychiatrists. The company was co-founded in 2015 by David Ebersman (former CFO at Facebook), Bob Kocher, and Bryan Roberts. Lyra Health mainly caters to the B2B market, where it partners with companies (clients include Starbucks, eBay, Amgen, Netapp, Uber, Genentech, ServiceNow, and Apache) to provide employees and their families with easy access to effective mental health care. As of May 2021, Lyra’s network had more than 5,000 clinicians and served 2.2 million members.

Lyra Health covers mental illnesses ranging from mild to severe cases through a wide range of care options including coaching, therapy, psychiatry, and medication. These care options are delivered through self-guided programs, in-person chats, live video chats and even onsite options at employee premises. As for service delivery, the company partners with behavioral health coaches and therapists who can link their practices to Lyra Health’s platform. Users initially sign up and complete a clinical assessment, the platform’s analytical tools then match users with the relevant coaches or therapists. Lyra also conducts a progress check to find out if the user is actually benefiting from care options.

Lyra completed two funding rounds within the first 5 months of 2021, raising USD 187 million in January and USD 200 in May, which brought total funds raised to USD 675 million. The funds will help accelerate Lyra’s global expansion drive and will be invested in developing new solutions for enterprises and mental health providers across 180 countries. The company plans to facilitate this expansion through its recent partnership with international employee assistance program provider ICAS World. Lyra also plans to launch a new, global, digital platform in 2022 that would provide integrated mental healthcare solutions including preventive care, mental health coaching, therapy, meditation, and medication.

Segment:
Telepsychiatry Platforms
Total funding:
USD 675.1 million
Competitors:
Ginger, Talkspace, Mantra Health, Meru Health, Cerebral, AbleTo, Sondermind, Mindstrong, Spring Health
Disruptor Funding History

Telepsychiatry Platforms:

Lyra Health
Talkspace
Spring Health
Ginger
SonderMind
Cerebral
Mindstrong
Quartet Health
Headway
Alma
Unmind
Groups Recover Together
Meru Health
AbleTo
Eleanor Health
Talkiatry
Monument
Ophelia
Real Therapy
Concert Health
Boulder Care
Healios
PursueCare
Zenklub
Valera Health
ifeel
Ahead
Calmerry
Hurdle
Wellin5
Lucid Lane Inc.
HelloSelf
Mantra Health
wayForward
Spill App
Joon Care
Coa
Daybreak Health
Pace Group Inc.
Zenovate
MindRight Health
Ayana Therapy

Monitoring and Measuring Tools:

NeuroFlow
BrainCheck
Nirvana Health
Osmind
Blueprint
HealthRhythms
Clarigent Health

Digital Therapeutics:

The Incumbents

Most incumbents are established telehealth players that expanded into mental health through acquisitions

The incumbents in the mental health tech industry are mainly established telehealth players that have expanded their virtual care scope to cover mental health. Many leading telehealth players have already ventured into the mental health market by acquiring mental health telehealth providers.

Acquisition

In-house development

Partnership

Teladoc Health
check
Amwell
check
check
MDLive
check
Livongo
check
Reddit
check
AdiGroup
check
Integrated Behavioral Health, Inc. (IBH)
check
check
Teladoc Health

Teladoc Health is a leading virtual healthcare provider. The company collaborates with employers (around 40% of Fortune 500 companies and medium and small businesses), more than 300 hospitals both in and outside of the US, more than 40 health plans, and 70 insurers globally. It reported a paid membership base of around 43 million as of March 2020, which is expected to increase to 50 million by the end of 2020, growing 36% YoY.

Teladoc Health expanded into mental health tech when it acquired Betterhelp in January 2015 for a consideration of USD 4 million. Betterhelp, a direct competitor of Talkspace, provides a D2C online platform for users to access services from a network of therapists via text, video, and phone. The acquisition allowed Teladoc Health to tap into the D2C market, complementing its legacy B2B platform.

Notable Investors

Funding data are powered by Crunchbase

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