Modern Health raises another $74M to meet employers’ demand for mental health benefits

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San Francisco-based psychological well being and wellness platform Trendy Well being has stored its foot on the fuel all through the COVID-19 pandemic. As we speak it introduced a $74 million Sequence D funding spherical just some months after a $51 million Sequence C closed in October and formally introduced in December.

The brand new investments peg Trendy Well being’s lifetime funding to greater than $170 million, the corporate mentioned, and its valuation to $1.17 billion.

Returning backer-founder Fund led the Sequence D spherical, which additionally had participation from Lachy Groom. Prior traders within the firm have included Battery Ventures, Kleiner Perkins Felicis Ventures and 01-Advisors.

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WHAT IT DOES

Trendy Well being works with employer-customers to offer an app-based bundle of psychological well being advantages. Workers are first requested to finish a survey on their focus areas, considerations and present way of thinking, after which are supplied with a number of digital applications that tackle their wants.

These choices tackle points corresponding to stress, monetary wellbeing, work efficiency, and relationship steering, and may be augmented with distant teaching or with stay group or one-on-one remedy.

Alongside its flurry of fundraises, Trendy’s announcement additionally highlighted the corporate’s latest progress. In 2020, the startup tripled its workers and doubled its buyer base to greater than 220 shoppers. Trendy attributes a lot of that progress to new demand ensuing from COVID-19, but in addition highlights its engagement charges and outcomes as a promoting level to employers.

In response to the corporate, nearly all of staff registered on the platform full not less than two remedy classes, greater than half are partaking with their care and practically half who begin teaching classes resulting from depressive-related signs show scientific restoration after 4 classes.

“If there’s one factor we’ve realized from this previous 12 months, it’s that prioritizing worker psychological well being is important for all firms – regardless of the dimensions. We should always not have to attend till there’s a world pandemic to take motion,” Alyson Watson, CEO and founding father of Trendy Well being, mentioned in a press release.

“Enterprise leaders have an crucial to prioritize the wellbeing of their workforces, as a result of it instantly impacts firm productiveness and efficiency – and since we care about our staff at work and outdoors of it.”

Notably, a few weeks in the past, the corporate additionally make clear the acquisition of fellow digital psychological well being startup Kip, in addition to plans to combine its data-tracking, analytics and user-communications expertise into Trendy’s personal choices.

WHAT IT’S FOR

Trendy mentioned that the brand new funding will “assist the corporate to proceed its spectacular upward momentum, supporting extra enterprises and providing quite a lot of accessible, progressive, and customised psychological well being administration choices to workforces worldwide.”

THE LARGER TREND

Trendy’s pandemic-driven upward trajectory is a well-recognized story for different tech platforms addressing worker and shopper psychological well being and wellness. In its annual digital well being funding report, Rock Well being highlighted the digital mental-healthcare area as a transparent beneficiary of COVID-19-driven demand.

For the employer and enterprise market, startups like Lyra Well being, Vida Well being and Ginger every introduced sizable funding rounds within the final 12 months. Different manufacturers extra centered on customers, corresponding to Talkspace or Headspace, have additionally signaled robust progress this 12 months, whereas telehealth and telehealth names like Hims & Hers expanded their choices to incorporate behavioral well being companies like digital remedy.

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