Modern Health — a mental health and wellness platform for employers — has raised $74 million in Series D funding, the company announced Thursday.
Modern Health said the new investment brings its total funding raised to more than $170 million and pushes its valuation above $1.17 billion, making it one of the few unicorns in the behavioral health space.
In the startup world, unicorns are privately held companies valued at $1 billion or more. For years, the behavioral health industry lacked a single one. But the recent influx of funding into the space has changed that, with startups such as Calm and Lyra Health entering the unicorn club in 2019 and 2020, respectively.
Now, Modern Health has also joined the ranks.
Founded in 2017 and headquartered in San Francisco, Modern Health works with employers to provide enterprise mental health solutions. Its platform gives employees access to well-being assessments, self-service wellness kits, certified coaches and licensed therapists, all available in a single app. The company currently supports more than 220 enterprises globally, some of which include Pixar, SoFi and Clif Bar.
In the past year, Modern Health has tripled its employee headcount and doubled its customer base, with the pandemic helping to fuel the demand for proactive mental health solutions, according to Modern Health.
“If there is one thing we’ve learned from this past year, it’s that prioritizing employee mental health is critical for all companies – no matter the size,” Alyson Watson, CEO and founder of Modern Health, said in the press release. “We should not have to wait until there is a global pandemic to take action.”
Modern Health’s latest funding round was led by Founders Fund with additional participation from Lachy Groom. The news comes days after the company announced its acquisition of the mental health solutions and analytics provider Kip and just a couple months after it closed on $51 million in Series C funding.
Since that previous funding round, Modern Health has doubled its revenue, the company said. Plus, it launched 25 new enterprise customers in January 2021 alone.
The startup plans to use the new funding to continue on that trajectory, add new clients and offer a “variety of accessible, innovative and customized mental health management options to workforces,” according to the press release. Additionally, Watson told Bloomberg she has her eyes set on an eventual IPO.