The year 2021 was a banner year for digital mental health investment. That fact is highlighted by the cliff-jump drop in investment in 2022.
A new report from CB Insights shows that total investment in digital mental health for the first six months of the year totals about $1.5 billion, 40% less than the first half of 2021.
The data-heavy report doesn’t delve into why digital mental health has seen this slump. However, the report tracks a continued global slowdown in digital health investment in 2022 so far compared to 2021.
CB Insights tracked $7.1 billion in total digital health investment, a 57% reduction compared to a year ago and a 32% reduction compared to the first quarter of 2022.
In 2021, total global digital health investment totaled $59.3 billion. The CB Insights report estimates that 2022 will see about $35.3 billion in total funding.
This overall slowdown aligns with a similar report Rock Health released earlier in July. That report shows that digital mental health had the highest levels of investment in the second quarter of 2022.
Just the digital mental health part
Specific to digital mental health, the second quarter’s roughly $700 million is down 53% year-over-year and down 12.5% compared to the first quarter.
In 2021, investment in the space totaled $5.5 billion, according to the report. That year’s investment totaled more and 2018, 2019 and 2020 combined.
Deal volume and average deal size are down in digital mental health as well.
The second quarter saw 67 investment deals in mental health and the first half of 2022 saw 148 deals. These numbers are down 26% and 10%. The average investment deal size is down by 37% year-to-date to about $12 million compared to $19 million a year ago.
Some of the largest funding deals in the second quarter include Bicycle Health and Eleanor Health raised Series B and Series C rounds, respectively. Both rounds brought in $50 million.
Concert Health landed $42 million in Series B funding to advance its collaborative care model. Iris Telehealth and Osmind both raised $40 million in Series B rounds.
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