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        Big Health, a mental health digital therapeutics (DTx) startup, has raised USD 75 million in a Series C funding round led by SoftBank Vision Fund 2 with participation from ArrowMark Partners, Octopus Ventures, Gilde Healthcare, Kaiser Permanente Ventures, and Morningside Ventures. This brings the company&rsquo;s total funds raised to nearly USD 130 million.
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        The funds will be used to accelerate commercialization as well as to expand the product coverage by launching six new DTx by 2024.
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        At present, Big Health has more than 10 million individuals using its offerings.&nbsp;
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  <p>
    <a href="https://www.businesswire.com/news/home/20220119005418/en/Big-Health-Raises-75-Million-in-Series-C-Funding-Led-by-SoftBank-Vision-Fund-2">
      Business Wire
    </a>
  </p>
  <p>
    <a href="https://www.fiercehealthcare.com/digital-health/big-health-hauls-75m-to-ramp-up-its-digital-mental-health-therapeutics-business">
      Fierce Healthcare
    </a>
  </p>
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Mental Health Tech

Big Health raises USD 75 million in Series C funding

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 <p>Two Chairs, a behavioral health company based in California, has received USD 72 million in a series C funding round. The round was led by Amplo and Fifth Down Capital, raising the total funding of the company to USD 102 million.</p>
 <p>The fund will be utilized to employ more therapists, expand the business to new states, and improve its technology to serve its clients effectively.</p>
 <p>Two Chairs specializes in matching therapists and clients through a unique matching algorithm. The company states that 98% of its clients find the appropriate therapist through its platform on the first try. Presently, the company operates in California, Florida, and Washington.</p>
 
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Two Chairs raises USD 72 million in Series C funding to expand team, increase reach, and enhance technology

PROMINENT_CATEGORY

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 <p>Pelago, an online organisation for substance use management, has initiated a new scheme based on contingency management. The aim of this service is to promote patient involvement, motivation, and enhanced health results by recognising positive attitudes.</p>
 <p>The scheme encourages patients to adopt positive actions such as participating in substance use disorder treatment and following healthier habits of managing substance use or abstaining from it. It incorporates various strategies including rewards like prizes, special rights, or cash incentives. Initially, the scheme is targeting alcohol use disorder with the plan to broaden its focus to include other forms of substance use disorders. The program proposes the use of "Pelatokens" which can be earned by attaining certain health aims and milestones and can be exchanged for US dollars.</p>
 
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Pelago introduces contingency management program for substance use management

ANALYST_QUICK_TAKE

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 <p>Digital therapy platform Grow Therapy recently raised USD 88 million in a Series C funding round. The funding round was led by Sequoia Capital and saw participation from new investors such as Growth Equity at Goldman Sachs Alternatives and PLUS Capital, as well as existing investors Transformation Capital, SignalFire, and TCV. This investment brings the total funds raised by Grow Therapy to USD 178 million.</p> 
 
 <p>The company also unveiled its upgraded measurement-informed care system. This new system is designed to enhance the care experience for both clients and healthcare providers. Moreover, it aims to ensure that value-based mental health care is available for all patient groups, including those enrolled in Medicaid and Medicare.</p> 

</div> <p><b>Analyst QuickTake:<br>
 </b> Prior to this, the company raised <a href="https:<br>
//sp-edge.com/updates/13405"> USD 75 million </a> in a Series B funding round led by TCV and co-led by Transformation Capital in September 2022. Among others, the funds were expected to be used to expand the platform’s health plan coverage. As of April 2024, the company had expanded its geographical reach to 20 states.</p>

Grow Therapy raises USD 88 million in Series C funding and launches upgraded measurement-informed care system

INCUMBENTS_PRESENT

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<p>Telehealth company American Well (Amwell) has been warned by the New York Stock Exchange (NYSE) due to its average closing stock price dropping below USD 1 per share. They have six months to increase their share price above the USD 1 threshold.</p>
<p>Amwell's declining stock price is largely due to several strategic errors, increased competition, hastened product introductions, and a decrease in revenue. To address these issues, the company is considering a reverse stock split, pending approval from its board and stockholders.&nbsp;</p>

</div> <p><b>Analyst QuickTake:<br>
 </b> Despite reporting total virtual visits of 6.3 million and having about USD 372 million in cash and short-term securities, Amwell recorded gross losses of USD 679 million in <a href="https:<br>
//s25.q4cdn.com/628195074/files/doc_financials/2023/q4/AMWL-Q4-2023-Earnings-Report-FINAL.pdf"> FY2023 </a> . The company, however, expects improvements by 2025 with projected YoY revenue growth of ~30% between 2024 and 2025, and a 72%–77% improvement in its YoY adjusted EBITDA during the same period.</p>

Amwell receives warning from NYSE; delisting risk amid stock price downturn

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 <p>Teladoc Health CEO Jason Gorevic will step down from his role after a tenure of 15 years, in the aftermath of a 22% drop in the company's stock in February. Current CFO, Mala Murthy, will serve as interim CEO until a new permanent CEO is appointed.</p>
 <p>The decline in Teladoc's stock started following the disclosure of the company's FY2023 results. These results revealed a shortfall in Teladoc's Q4 2023 earnings estimates and projected revenues between USD 630 million and 645 million. This projection translates to a net loss per share of USD 0.45–0.55.</p>
 <p>As stated by interim CEO Murthy, Teladoc plans to maintain its business continuity during this period of transition. The company has hired an executive search firm to find the next CEO, with potential candidates being assessed from both within and outside the organization.&nbsp;</p>
 
</div> <p><b>Analyst QuickTake:<br>
 </b> Teladoc has faced some difficulties in the recent past. From its historic USD 13.7 billion loss in <a href="https:<br>
//sp-edge.com/updates/16563"> FY2022 </a> after its acquisition of Livongo, to having to fight a multi-year <a href="https:<br>
//sp-edge.com/updates/19974"> securities class action lawsuit </a> (which was only resolved last year), the company has had its share of turbulence. These events have reflected in its share price&nbsp; which has plummeted from a high of ~USD 293 in February 2021 to its price today of ~USD 14, signaling a lack of confidence in the company.</p>

Teladoc Health CEO steps down

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<p>Click Therapeutics and Otsuka Pharmaceutical have secured US FDA approval for Rejoyn, the initial prescription digital therapeutic specifically for Major Depressive Disorder (MDD). It serves as an addendum to clinician-directed outpatient care for MDD patients above 22 years who are on antidepressant medication.</p>
<p>The Rejoyn therapy is designed as a six-week treatment plan aimed at enhancing emotional cognitive control via cognitive emotional training exercises as well as short therapeutic lessons. Contrary to wellness applications, the Rejoyn app is an FDA-authorized medical device available only with a healthcare professional's prescription.</p>

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Click Therapeutics and Otsuka Pharmaceutical announce FDA clearance for Rejoyn for treating major depressive disorder

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 <p>InStride Health has successfully raised USD 30 million in a series B funding round. With support from General Catalyst as the lead, and existing investors such as 406 Ventures, Valtruis, Mass General Brigham Ventures, and Hopelab Foundation, the company's total funding has reached USD 56 million.</p>
 <p>The raised funds are expected to be utilized to improve InStride Health's clinical quality while also aiding in the expansion into new markets.</p>
 <p>Based in Massachusetts, InStride Health provides insurance-based access to mental healthcare for pediatric patients, with a focus on anxiety and obsessive-compulsive disorder (OCD). Not only does the company accept most major insurance plans in its service states, but it also brings treatment to patients outside traditional clinical settings. This approach, centered on addressing fears and anxieties in their natural environments, is designed to accelerate learning and build resilience.</p>
 <p><b>AnalystQuickTake</b>: Before this funding round, InStride Health raised <a href="https://sp-edge.com/updates/13643"> USD 26 million </a> in October 2022. This was led by 406 Ventures, Valtruis, and Mass General Brigham Ventures, with the intention of expanding the company's treatment offerings to families and individuals in need of pediatric mental health care.</p>
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InStride Health raises USD 30 million in Series B funding to enhance clinical quality and expand to new markets

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 <p>Brightside Health, a telepsychiatry and teletherapy platforms provider, recently raised USD 33 million in a series C funding round. The round was led by S32 and included support from new investors Kennedy Lewis, Time BioVentures, and Anne Wojcicki (Redwood Pacific), as well as existing investors ACME, Mousse Partners, and Triventures. This latest funding round brings the company's total funds raised to over USD 114 million.</p>
 <p>The funds secured are planned to be used by Brightside Health for the expansion of its product offerings and market reach.</p>
 <p>Additionally, the company has welcomed industry expert Trip Hofer to the board of directors. Hofer will provide advice on go-to-market strategy and execution, drawing on his experience as the former CEO of Optum Behavioral Health Solutions.</p>
 
</div> <p><b>Analyst QuickTake:<br>
 </b> Prior to this, the company raised <a href="https:<br>
//sp-edge.com/updates/9427"> USD 50 million </a> in a series B funding round in March 2022 led by ACME Capital and Mousse Partners to expand its team from 50 employees to an estimated 175, improve its platform, and increase its user base via partnerships.</p>

Brightside Health raises USD 33 million in Series C funding to expand its product offerings and market reach

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 <p>UpLift, a mental health solution provider, has acquired TAO Connect, a company offering therapy-assisted mental health services to educational institutions. The purchase price remains undisclosed.</p>
 <p>This acquisition broadens UpLift's service range and its market geographical reach. UpLift can now cater to over 170 enterprise customers across the US and Canada, serving more than 4 million individuals. This population includes over two million students from more than 120 higher education institutions in the US.</p>
</div> <p><b>Analyst QuickTake:<br>
 </b> In order to expand its market, the company also <a href="https:<br>
//sp-edge.com/updates/24014"> acquired a similar platform provider, Minded </a> , in November 2023 for an undisclosed sum. Following the acquisition, UpLift planned to leverage the increased capacity to expand its services to all 50 states, beginning with California, Illinois, New York, Pennsylvania, and Texas.</p>

UpLift acquires TAO Connect for undisclosed sum to offer enhanced mental health resources to higher education institutions

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 <p>DarioHealth, a provider of digital therapeutics, has procured digital mental health company Twill in a USD 10 million cash deal. As part of the agreement, DarioHealth will also issue 10 million shares of common stock as pre-funded warrants. Meanwhile, the company announced a private placement of convertible preferred stock aimed at raising USD 22.4 million.</p>
 <p>The newly acquired funds will be used for general corporate objectives.</p>
 <p>This acquisition is part of Dario's strategy to create a comprehensive platform for managing chronic health conditions. The addition of Twill's digital solutions will help Dario extend its customer base, improve operational efficiency, and speed up profitability. The acquisition could potentially double Dario’s revenues in 2023 and increase gross margins to around 80%-85% by 2025.</p>
 <p>Twill offers prescription-based and non-prescription digital therapies for a variety of mental health conditions, including stress, anxiety, and depression. The company partners with major national health plans, Fortune 100 employers, and leading pharmaceutical companies.&nbsp;</p>
 
</div> <p><b>Analyst QuickTake:<br>
 </b> Despite maintaining strong business momentum, Dario has consistently incurred operational losses, resulting in a net loss of USD 62.2 million for <a href="https:<br>
//www.prnewswire.com/news-releases/dariohealth-reports-fourth-quarter-and-record-revenue-in-full-year-2022-financial-and-operating-results-301767770.html#:<br>
~:<br>
text=Net%20loss%20was%20%2462.2%20million,profit%20and%20lower%20operating%20expenses."> FY2022 </a> . The company is optimistic about achieving profitability within the second year after acquiring Twill. This confidence is bolstered by its previous acquisitions, including the expansion into new therapeutic areas through the purchase of <a href="https:<br>
//www.mobihealthnews.com/news/dariohealth-buys-msk-upright-technologies-acquisition-announces-70m-private-placement"> Upright Technologies </a> and <a href="https:<br>
//www.prnewswire.com/il/news-releases/dariohealth-acquires-digital-behavioral-health-platform-wayforward-301293391.html"> WayForward </a> in 2021 and the addition of AI-based MSK care management company <a href="https:<br>
//sp-edge.com/updates/7960"> Physimax </a> in January 2022.</p>

All Updates