2022 Mental Health Tech Funding Down 53%

Global funding for mental health tech ended much lower in 2022 than the abnormally active prior year.

In 2022, total funding for mental health tech companies was down 53% to about $2.6 billion and 286 deals, according to the data and research firm CB Insights. In 2021, the company tracked $5.5 billion and 354 deals.

Despite the year-over-year cliff jump, 2022 still saw the highest amount of funding compared to 2018, 2019 and 2020, according to CB Insights’ latest report. 


The report states that all global digital health funding fell in a similar proportion — down 57% to $25.9 billion.

Behavioral health companies face several economic pressures — such as inflation and increased central bank interest rates, which have brought investors and companies back to earth.

The fourth quarter was significantly down, comparatively speaking. The deal count dropped to 57, a 23% quarter-over-quarter decrease and a 12-quarter low. Funding for the quarter was $485 million, the lowest since the second quarter of 2020.


Companies based in the U.S. accounted for 63% of mental health tech deals in the fourth quarter of 2022 and about 54% for the year.

Mental health tech companies saw the only digital health SPAC in the U.S. in 2022 — Akili, Inc.’s (AKLI) SPAC merger in Aug. 2022.
The report tracks several mental health tech deals. The largest singular round was Maven Clinic’s $90-million Series E round and $1.4 billion valuation. The company came into 2022 as a unicorn based on previous investment activity.

Other large investment rounds in 2022 included Valera Health’s Series B ($44.5 million on a $177 million valuation), Brave Health’s Series C ($40 million) and InStride Health’s Series A ($26 million).

The cooldown in 2022 also altered the overall profile of digital mental health investing and deal-making.

A smaller share of companies receiving investment were considered early stage. In 2022, that share was 69% compared to a recent high of 82% in 2019, according to the CB Insights report.

The average investment amount dipped year-over-year by 44% to $10.4 million; in 2021, it was $18.6 million. However, the median investment amount remained at about $3 million in 2022, as it did in 2021 and 2020. This implies fewer big-dollar deals and/or more, smaller deals.

CB Insights tracked no new unicorns in 2022, leaving the firm’s total of 10 mental health tech unicorns.

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