From PitchBook, October 14:
Driven by pandemic demand, mental health startups surpass 2019 funding
Totaling $1.37 billion through the third quarter, venture capital funding of US mental health startups this year has already outpaced the $1.06 billion invested in 2019, according to PitchBook data.
Moreover, investments in the space have more than quadrupled since 2015.
In what could be the second-largest mental health VC deal of the year, Calm is reportedly in talks for a $150 million funding round that could value the meditation app maker at $2.2 billion.
Early investors in the San Francisco-based company reportedly may be allowed to sell shares in the deal, Bloomberg reported. Calm's existing backers include TPG, Insight Partners and Lightspeed. It was valued at $1 billion last year after raising an $88 million Series B.
"Mental health cases, obviously, are on the rise in large part due to this pandemic," said Katherine Andersen, head of life science and healthcare relationship banking at Silicon Valley Bank. In a survey conducted by the Centers for Disease Control in June, around four in 10 Americans reported struggling with a mental or behavioral health condition.
"I do think we're going to see a lot of investment and activity generally across mental and behavioral health going forward," Andersen added....MORE
