New York City-based digital mental health provider Spring Health has secured $100 million in funding on a $3.3 billion valuation, the company said Wednesday.

This comes on the heels of another eye-popping funding round. The company raised a $71 million Series D round (on a $2.5 billion valuation) in April 2023. Wednesday’s $100 million Series E round brings Spring Health’s estimated funding total to $466.5 million, according to crunchbase.com.

The cash infusion will go to developing more robust services and programs, Sean Bell, general manager for Spring Health, told Behavioral Health Business. Examples include Spring Health’s recently revealed Community Care Solution, which helps address employees’ social determinants of health and its teen-specific programming.

The London-based sustainability-minded investment firm Generation Investment Management led the Series E round, according to a news release. The round also saw participation from several other firms that have previously invested in the company: Kinnevik, the William K. Warren Foundation, RRE and Northzone. Kinnevik led the $190 million Series C round that was announced in 2021.

“[T]his new funding allows us to double down on our strengths, increase access, scale our impact, and continue to deliver even greater ROI to employers,” April Koh, co-founder and CEO of Spring Health, said in the release.

Spring Health provides employers with access to a stable of contract therapists through its software. About 10 million people have access through its partnerships with payers, companies and other organizations. Spring Health has 450 contracts with employers that include Microsoft, Target, J.P. Morgan Chase and Delta Airlines. It sells itself to organizations as the only company of its type to gain external validation for delivering employers net positive ROI through its mental health services.

The Spring Health platform encompasses 10,000 providers and uses AI to empower speedy connections to care, the release states.

“Spring Health has scaled an incredibly effective network of mental health providers, capable of providing care to millions of people globally while aligning the needs of patients, providers, and employers,” Anthony Woolf, growth equity partner at Generation Investment Management, said in the release.

Spring Health was founded in 2016 by Koh and Adam Chekroud, the company’s president.

Spring Health is the first Series E round to be announced in a few years. Competitors Lyra Health and Headspace Health’s predecessor organization Ginger.io both raised Series E rounds in 2021. Lyra Health landed $187 million. Ginger raised $100 million. Headspace Health also announced it secured $105 million debt financing in July 2023.

That Spring Health has apparently had no issue raising capital is remarkable, given the wider context of digital mental health investing. Only a handful of companies have been able to pull large funding rounds after digital health generally reached a fever pitch in 2021 and funding fell to historic lows. Several operators, investors and other experts in the field have told Behavioral Health Business that it’s feast or famine for digital health companies in 2024, which has led to layoffs at many companies.

Digital mental health startups raised $682 million in the first half of 2024, according to Rock Health. If the second half of 2024 keeps pace with the first, total funding dollars and deal counts could exceed 2019 and 2023 levels.

Other digital health companies have turned to IPOs for later funding efforts. On the mental health front, this includes Talkspace, which has had to muddle through a strenuous and public conversion from D2C to B2B in its quest for profitability.

Bell said Spring Health is not yet profitable and that “the company is well ahead of its goals.”

“We’re very pleased about our progress and our financial metrics, and, I think, this is indicative of the investment itself,” Bell said. “You know what’s happening in the world right now in terms of the level of diligence and the expectations that investors have on growth companies. They’re only investing in companies where they feel very certain that the company is going to be a long-lasting, generational company that’s going to be producing long-term financial gains.”

He also noted that smaller or less successful B2B digital health companies are facing a much more skeptical and demanding customer market, reflecting the challenges of the investment market for such companies. Like other experts in the field, Bell said that companies no longer have an interest in services that can’t scale across a large organization or don’t have a track record of delivering ROI.