The mental-health space has become a booming one, and is projected to be worth some $240 billion by 2026. As a result, the tech companies that help support the industry have been getting a lot of attention too.
Headspace has offered its mindfulness and meditation services for free to healthcare workers, unemployed Americans and even the entire state of New York in an effort to combat the mental toll of the pandemic; Uwill, a Boston startup that offers teletherapy to college students launched after raising a $3.25 million seed; and San Francisco-based Lyra Health achieved unicorn status after a $110 million raise.
Now, two NYC startups — Headway and Spring Health — can be added to the list. Combined, they’ve raised $102 million in venture funding this week and both plan to expand their reach and grow their teams to keep up with a surge in demand amid the pandemic.
Let’s start with Spring Health, which announced closing on a $76 million Series B round led by Tiger Global on Wednesday.
In a nutshell, the company helps take the guesswork out of finding a mental-health professional, offering a “single front-door approach” that helps users locate whatever digital assistance, coaching, therapy, medication or employee assistance programs they need.
“Mental health is the defining problem of our time. Yet it’s still full of trial-and-error,” Spring Health co-founder and CEO April Koh said in a statement. “Our approach precisely delivers the personalized care plan for each individual no matter where they are in their mental-health journey, and we guide each individual through their journey through a dedicated navigator.”
The last time Built In caught up with Spring Health was in January, when it closed on a $22 million Series A. Since then, its revenue has grown 6X and its headcount has tripled. With this fresh funding, the company plans to triple its NYC team again and expand its capabilities around customer experience. Right now, the company currently has more than a dozen open tech positions.
“Mental-health awareness has come to the forefront of 2020. We’re confident Spring Health will be a leading mental-health solution for employers with its clinically proven technology and world-class providers,” Tiger Global partner Scott Shleifer said in a statement.
Meanwhile, mental healthcare provider Headway announced closing $26 million in financing on Wednesday. The funds will be used to expand its services outside of NYC and grow its team. The company currently has several open positions in its product, growth, engineering and ops departments.
Founded in 2019, Headway is developing a health insurance advisory platform that helps connect people with therapists. It also provides administrative support to therapists who don’t typically accept insurance. In the end, the goal is to make mental-health services more accessible.
“We are creating a new mental-health system that is rewired around software for affordability,” co-founder Andrew Adams told Crunchbase News. And this, by extension, helps people with issues that go beyond mental health. “Headway isn’t just mental health. We treat diabetes and cancer because we treat depression for those folks, which helps them to take their oral oncology treatment and their insulin,” he added.