Update: A new SEC filing reveals that Grow Therapy raised $50.2 million in equity financing. The story has been updated to reflect this amount.
Tech-backed mental health startup Grow Therapy has scored $80.2 million in Series B funding to expand its insurance coverage across the country.
This comes roughly a year after the New York-based startup picked up $15.5 million in a round led by SignalFire.
TCV and Transformation Capital led the most recent round, with participation from SignalFire and SVB. The funding is a combination of $50.2 million in equity and $30 million in venture debt, according to Fierce Healthcare.
“Grow Therapy is tackling this crisis in two critical ways: Making therapy a more attractive profession, and getting therapy covered by insurance,” Wayne Hu, a partner at SignalFire, wrote in a blog post about the news.
Grow Therapy is focused on giving mental health clinicians the tools to help start their own practice. Therapists can use Grow’s online scheduling, billing systems, telehealth infrastructure, electronic health records and marketing resources.
The startup also makes deals with major payers allowing the mental health clinicians in its network to be covered by insurance. Its insurer partnerships include Cigna (NYSE: CI), Humana (NYSE: HUM) and Aetna, along with Medicare and Medicaid.
“As leaders in the consumer internet and healthcare spaces, our new partners will be contributing their deep experience in consumer technology and healthcare to support our mission of empowering providers and expanding care to patients,” Jake Cooper, CEO at Grow Therapy, said in a statement. “We are nothing but optimistic for a future where starting a private practice is seamless, and accessing high quality mental healthcare is table-stakes.”
Grow Therapy’s platform also helps patients find providers that take their insurance and can meet their needs.
Founded in 2020, the company is now focused on growth. It has 98 employees and a network of more than 3,500 therapists.
The company currently has a network of therapists in 13 states but is looking to expand its reach. Specifically, the startup is looking to expand its commercial insurance, Medicare and Medicaid coverage into all 50 states.
The latest infusion of cash will also go toward building out its online marketplace, EHR platform and clinical resources.
This isn’t the only startup looking to help mental health clinicians start up their own practices. Alma, a digital behavioral health company that helps providers streamline their business and work with insurers, raised $130 million in Series D funding in August.
Similar to Grow Therapy, Alma is concentrated on supporting small mental health practices and setting up insurance contracts for them.
Quartet Health and Headway are tech-backed companies also looking to help match patients to mental health providers in their network.
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