Digital mental health company Cerebral has closed on $35 million in Series A funding, the startup announced Wednesday.
The on-demand mental health care provider will use the money to expand its services to all 50 states, develop partnerships with insurers and build out a new mobile app, according to a press release announcing the news.
The funding round was led by Oak HC/FT, one of the health care industry’s largest venture capital firms. Westcap, Liquid 2 Ventures, Gaingels, Air Angels and other unnamed investors also participated.
Headquartered in San Francisco, Cerebral is a mental health telemedicine startup that offers medication management, counseling and therapy for anxiety and depression. It launched in January with the goal of improving access to mental health care by reducing wait times and cost of care, in addition to other barriers.
The company’s model is self-pay and membership-based — though Cerebral leaders plan to use the latest round of funding to build relationships with payers. Currently, the startup offers a number of monthly care packages that vary in cost, intensity and frequency of service. Memberships can be paid for using money from flexible spending accounts (FSA) and health savings accounts (HSA).
Generally, Cerebral works by pairing clients with a provider and care counselor, who deliver services virtually. To start, the provider comes up with a treatment plan, which can include mail-order prescriptions. Users have the ability to check in with providers, therapists and care counselors over time, while also tracking and reporting their symptoms in the platform.
So far, the company seems to be achieving its mission.
About 80% of Cerebral clients have their first visit within 10 minutes of signing up for the service, according to the press release announcing the news. Plus, more than 75% of Cerebral clients report meaningful reductions in their symptoms after less than two months of care.
Additionally, the startup’s revenue has grown 690% since it launched back in January, Cerebral CEO and cofounder Kyle Robertson told Business Insider.
That success has caught the eye of big name investors like Oak HC/FT.
“Through proactive management and tracking, Cerebral has bridged gaps in clinical care and reduced barriers to connecting patients to the specialized mental healthcare they need,” Billy Deitch, principal at Oak HC/FT, said in the press release. “Cerebral is tackling a fast-growing need in the market, and consumers are eager to use these services. We’re thrilled to see how Cerebral continues to revolutionize the healthcare industry and shape telehealth adoption.”
Cerebral is the most recent in a long line of digital mental health companies to score major investments amid the COVID-19 emergency.
Some other examples include Headspace, which recently closed on $100.7 million in Series C funding; Ginger, which announced $50 million in Series D back in August; and Brightline, which recently brought in $20 million in Series A, among others startups.
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