Spring Health wants to take the guesswork out of finding a mental health provider and the trial and error that occurs during the search. The New York based company closed on a $76 million Series B round of funding to expand its platform.
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“Our approach is founded in science and academia, and not only matches people to the right treatment, but we’ve taken technology and combined it with a human touch to deliver world-class outcomes fast,” April Koh, co-founder and CEO of Spring Health, told Crunchbase News. “We are a ‘single front door’ for employees.”
The Series B was led by Tiger Global, which was joined by GingerBread Capital, Operator Partners, True Capital and individual investors Kyle Lowry (six-time NBA all-star and Toronto Raptors player) and Breanna Stewart (two-time WNBA all-star and Seattle Storm player). Existing investors Northzone, Rethink Impact, The William K. Warren Foundation, Work-Bench, SemperVirens and Able Partners also participated.
The investment brings the company’s total funding to $106 million since Spring Health was founded by Koh and Adam Chekroud in 2016. It also comes on the heels of Spring Health’s $22 million Series A announced in January.
The company is also in a market that is gaining attention from investors. We put together a list of global startups working in mental health and found 400 that received venture-backed funding within the past five years. In fact, investors pumped $8.6 billion into these companies during that time frame, according to Crunchbase data.
The global behavioral health market is expected to reach $240 billion by 2026, according to a 2019 report by Acumen Research and Consulting. Spring Health is carving out a niche in the precision mental health care space with employees. Koh estimates there are 150 million employees in the U.S. and the market is valued at $20 billion and growing.
Following the Series A, the company tripled its employees, expanded globally into more than 200 regions and was able to offer full employee assistance programs (EAP).
“EAPs are the traditional incumbents in the space,” Koh said. “They are an outdated model that we are trying to revamp and reinvent.”
Although entering the market just within the past two years, the company’s revenue has grown six times this year to date after growing four times in 2019.
Now with the Series B, Spring Health is focused on increasing its team again over the next few months and expanding capabilities around customer experience.
“Personalization and efficacy are key,” Koh said. “We take a comprehensive and sophisticated approach to understanding what you are struggling with, and what is best for you. Our goal is not to just match you with a therapist out of the gate, but what is the best course of treatment.”
What investors have to say
Pär-Jörgen Pärson, general partner at Northzone, said the firm did a deep dive into the mental health space, but found most startups were addressing potential customers who already knew what they needed for treatment.
“When we came across Spring Health, immediately it struck us about the one front door and way to guide people to the right treatment, and their quantitative approach to figuring out which methods worked for each person,” he said in an interview. “Also looking at the two co-founders, they complement each other and are very driven. We think they will become the best player in this industry that helps millions of people.”
Illustration: Dom Guzman