Many people dream of becoming entrepreneurs, and often the biggest...
Letting technology do the heavy lifting for certain monotonous tasks...
Growth often hinges on capable leadership at every...
Reaching $10 million in Annual Recurring Revenue (ARR)...
April 22, 2022
While the COVID-19 pandemic exposed (and expanded) the demand for mental and behavioral health services, it also prompted people to become more receptive to seeking treatment online for conditions such as stress, anxiety and depression. This shaped new opportunities for virtual mental health startups and ushered in a wave of venture capitalist funding to the segment.
According to PitchBook data, VCs poured a whopping $6.9 billion into U.S.-based mental and behavioral health companies in 2021, nearly triple the amount raised by the category in 2019.
• So far in 2022, VCs have invested $1 billion in U.S. mental and behavioral health startups. • At the end of March, investors funded two companies in the sector. Palo Alto, California-based startup Brightline, which provides virtual behavioral health for kids and their families, raised $105 million in a Series C round. Brightside Health, a Bay Area-based telemedicine platform that offers mental health treatment, secured $50 million in a Series B funding round.
The primary factors propelling investors’ enthusiasm for mental health companies, according to PitchBook, include: • Virtual health visits and consultations work well, often better than in-person ones. Not only children but also adults tend to feel more comfortable communicating about their issues from the convenience and privacy of their homes versus an office setting.
• Companies and payors are recognizing that supporting employee well-being in the workplace and covering behavioral health services increases productivity. It also helps reduce total health care costs as poor mental health often leads to poor physical health. • Virtual health care presents a viable solution to a severe shortage of mental health professionals in many states. Startups like Brightline and Brightside can help any patient who has access to Wi-Fi to receive care, regardless of their geographic location or proximity.
This isn’t a fleeting trend, according to PitchBook. Even though the pandemic seems to be winding down, there’s no sign that patients or health care providers are rushing to see each other in person. In other words, telemedicine for mental health is here to stay, and so is investor interest in the businesses that make it possible.
Escalon has helped thousands of startups alleviate the burden and bring in lasting value with our back-office solutions for HR, payroll, insurance, accounting and recruiting and taxes. Talk to an expert today.
Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.
Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.
Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.
Growth often hinges on capable leadership at every level. Yet many medium-sized businesses focus on filling immediate management vacancies rather...
Reaching $10 million in Annual Recurring Revenue (ARR) is a major milestone, but scaling further brings new operational hurdles. From...
April 30, 2025– Escalon Services, a leading provider of back-office solutions for startups and SMBs, proudly announces that it has...
Moving from 25 employees to 100 is a tipping point for many businesses. What worked with a lean, close-knit team...
Compensation isn’t just about paying people to show up and do work; it’s a strategic tool that can attract top...
Accurate accounting is the bedrock of any successful business operation. Yet, medium-sized businesses—those that have grown beyond the small-business stage...
Distinguishing between independent contractors (1099) and employees (W-2) is a pivotal compliance matter for U.S. businesses. Misclassification can result in...
Spring symbolizes renewal, making it an apt metaphor for startups aiming to secure fresh capital to fuel their next growth...
Payroll is more than just issuing paychecks—it’s a complex, high-stakes process that can significantly impact employee satisfaction, legal compliance, and...