Americans are depressed, stressed out, and looking for help. Mental health startups are stepping up to the challenge with record amounts of venture funding.
According to a newly released report from CB Insights, funding for mental health startups reached an all-time high in the third quarter of 2020. The total 68 deals easily surpassed the previous record of 59 deals set just a quarter earlier. Total funding slowed from peaks earlier this year to $417 million, the report found.
Investors have remained interested in funding mental health startups since the onset of the coronavirus pandemic as companies had to quickly adjust to accommodate remote work and the complications that came with it. Many employees have reported high levels of stress, anxiety, depression, and burnout during the mass movement to work from home, indicating the need for new mental health solutions that can operate within virtual care guidelines.
In addition to traditional healthcare benefits, many companies have decided to offer additional mental health benefits during the unprecedented upheaval.
That has created a boon for mental health startups offering a wide range of specialized services and tools designed to operate in a virtual-first care setting. In addition to teletherapy or text-enabled visits, newly funded startups also offer behavioral services for children and medication delivery. There are also companies that offer mental health services specifically for women, who studies show