Grow Therapy Raises $88M in Series C, Secures Unicorn Status

Mental health tech startup Grow Therapy has raised $88 million in Series C, bringing its total raise to over $178 million. 

The New York City-based company will use the new funds to develop a system for measurement-informed care delivery and enhance its value-based care reporting.

“We are committed to not only improving access but also supporting clinicians in delivering effective care,” Jake Cooper, co-founder and CEO of Grow, told Behavioral Health Business in an email. “The measurement-informed care model equips providers with insights to adapt their treatment plans to the evolving needs of their clients and to allow each individual to be aware of their progress.”


Sequoia Capital led the funding round, with participation from Goldman Sachs Alternatives and PLUS Capital. Existing investors Transformation Capital, SignalFire and TCV also contributed.

“Over the past few years, there has been a secular shift in Americans’ approach to mental health care, yet many people still struggle to access affordable and effective care due to fragmented legacy systems,” Pat Grady, a partner at Sequoia Capital, said in a statement. “We’re proud to partner with the Grow Therapy team as they pursue the important mission of providing access to trusted mental healthcare.”

Grow provides software tools, including online scheduling, billing systems, telehealth infrastructure, electronic health records and marketing resources to private practice therapists. It also facilitates partnerships with insurance networks, enabling its clinicians to offer in-network sessions with major insurance payers including Cigna (NYSE: CI), Humana (NYSE: HUM) and Aetna, along with Medicare and Medicaid.


The company previously raised $80.2 million in Series B to expand its network of therapists and now has providers in 46 states and Washington. 

Grow recently announced a partnership with Big Health, a mental health digital treatment developer, integrating Grow’s provider network with Big Health’s digital programming. 

The Series C funds bring the company’s total valuation over the $1 billion mark.

Grow has enabled more than 3 million therapy sessions and is now looking to expand its measurement-informed care practices. The company currently uses standardized measures including the PHQ-9, GAD-7 and Therapeutic Alliance.

“We are also making available additional diagnostically-specific measures that our providers can add on for their particular clients during the course of their care if they would like,” Cynthia Grant, Grow’s head of clinical excellence, told BHB in an email.

Grow also doubled down on its commitment to value-based care and intends to enhance its value-based care reporting to its payer partners.

“We have both value-based and fee-for-service models,” Cooper said. “We’ve been able to drive great alignment through the former, but above all are committed to meeting our insurance partners where they are, and therefore can operate under either model.”

Other digital-forward companies have also secured significant funding rounds in recent months despite low digital health funding in 2023

Autism device company EarliTec raised $21.5 million earlier this month, enterprise-focused digital behavioral health startup raised $58 million in March, and Limbic raised $14 million to expand its AI-enabled chatbot to the U.S.

The digital health sector saw a significant uptick in fundraising activities during the first quarter of 2024, according to the latest report from Rock Health. Digital health companies closed 133 fundraising rounds in Q1, surpassing the total number of fundraises in any of the previous six quarters. 

While the pace of digital health fundraising has quickened, the dollar amount shrunk. The average deal size was $20.6 million, lower than any year since 2019. Much of the funds that were spent went to artificial intelligence (AI)-enabled companies, representing a “bright light” in the digital health fundraising space.

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