Nothing says “we believe in what you are doing” more than four entities investing in a company many of their associates currently recommend.
SilverCloud Health’s digital mental health platform got a boost Wednesday from a $16 million Series B funding round led by MemorialCare Innovation Fund.
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The Boston-based company’s mental health programs are used by more than 300 health care systems, providers, health plans and employers, including over 70 percent of the mental health services provided by the U.K.’s National Health Service.
SilverCloud’s library includes more than 30 programs across the spectrum of mental health from wellness and resilience to severe mental health and chronic concerns. In all, the platform has gained more than 350,000 users since SilverCloud’s inception in 2012, and is growing by over 15,000 users per month, according to the company.
“Our ‘North Star’ is outcomes and clinical improvements using validated clinical measures,” said Ken Cahill, CEO of SilverCloud.
Doubling up on growth
The Series B brings the company’s total funding to more than $30 million. In addition to MemorialCare, new investors in this round included LRVHealth, OSF Ventures and UnityPoint Health Ventures. Existing investors Act Venture Capital and B Capital Group participated as well.
SilverCloud last raised $8.1 million in a Series A round in January 2017, led by B Capital, according to Crunchbase data.
Cahill said the company plans to use the new funding round to expand its program offerings in North America, enhance its global portfolio and conduct additional research and clinical trials.
That includes rolling out new programs for new and expectant parents as well as oncology support.
“The funding allows us to expand our team across the United States and continually invest in our platform and research,” he said. “When we talk to new health care systems, they will see the depth of research and validation that covers a full spectrum of care and how we can be a mental health system for them.”
He expects to double SilverCloud’s employee base of 70 and for revenue to continue to double in the foreseeable future.
Meeting a need
Mental health is at the forefront of health care as most of the world stays home to help flatten the COVID-19 pandemic curve, and many startups in the space have recently announced funding to boost their platforms.
This week, we reported that SonderMind closed a $27 million Series B round to make its application more accessible. In February, we examined how venture capitalists work with their entrepreneurs to address their mental health during a fund raise.
SilverCloud itself expects to push out a COVID-19-themed program on April 13 entitled, “Living in Challenging Times,” Cahill said. It will be provided free to more than 180 million people across their network and will examine today’s challenges, such as dealing with isolation and work-life balance.
The company is also building out the next wave the COVID-19 program—what will “normal” look like and how to help people with reintegration into society.
Meanwhile, each of the new investors are associated with leading U.S. health care systems that currently use SilverCloud. Caleb Winder, managing director of MemorialCare Innovation Fund, said SilverCloud is proving its ability to meet a need.
“[The company] has a clear advantage in delivering positive clinical outcomes and a remarkable track record of success and unprecedented levels of engagement,” Winder said in a written statement. “With strong global connections to multiple providers already in place, our investment will enable SilverCloud to reach and help even more patients across the U.S. and beyond.”
Aside from this deal, SilverCloud’s investors have been busy. Last week, MemorialCare led, with Cigna Ventures, an $18 million Series B round for AristaMD, a virtual medical consultation platform. Also in March, we reported that B Capital Group led a Series D funding round for Plastiq, an automated payments solution focused on small and medium-sized business.
Illustration: Dom Guzman
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