Is Venture Capital Ready for Brick-and-Mortar Behavioral Health Investment? 

Private equity has long dominated in-person behavioral health investment. But some venture capital investors, who entered the behavioral health market by backing digital providers, have now moved into hybrid business models that include both telehealth and in-person elements. For example, GV, formerly Google Ventures, recently invested in hybrid outpatient provider Guidelight. Despite the higher working […]

Venture Capital’s Priorities Are Evolving As Behavioral Health Market Matures

Venture capital firms have poured billions of dollars into the behavioral health sector over the last five years or so — and it remains a top investment target. However, investors are shifting their focus, seeking out business models with proven track records and taking calculated risks on innovative approaches. The venture capital approach contrasts with […]

‘Investors Are Hungry To Find the Best’: It’s Feast or Famine in Digital Behavioral Health Investing

In case you missed it, Behavioral Health Business has launched a new specialty publication for professionals in the substance use disorder space. You can subscribe to Addiction Treatment Business here: Subscribe today! When it comes to digital health investing, it’s feast or famine for behavioral providers, driving some startups to make tough choices. In 2021, […]

Investors Foresee Cost of Care Attribution, Payer Landscape As Thorniest Issues for Behavioral Health Value-Based Care

Value-based care has been a buzzword for decades in behavioral health, but the bulk of providers have yet to make the leap from fee-for-service to a risk-bearing or even cost-savings model. This could be changing as payers begin to prioritize value-based care contracts. In turn, this could reshape dynamics between providers and their investor partners. […]

‘An Economic Incentive to Care’: Improving Behavioral Health Equity Boosts Bottom Lines

Payers and employers often have a blind spot when it comes to addressing inequities in behavioral health. But ignoring mental health care inequities can increase overall health care costs.   An analysis from Deloitte suggested that inequities have led to $320 billion in annual health care spending — “signaling an unsustainable crisis for the industry.” That figure […]

What SVB’s Collapse Could Mean for Behavioral Health Companies

Silicon Valley Bank’s (SVB) collapse and subsequent takeover by federal regulators could have significant implications for the behavioral health startup ecosystem. On Friday, the major California-based bank that catered to startups and tech investors crumbled after failing to raise capital. Since then, Signature Bank and crypto bank Silvergate have also collapsed. SVB’s demise could have […]

Quit Genius, Wondermind Cash In Despite Investment Slowdown

Several behavioral health startups have soldiered through a recent investment slowdown in the digital mental health space and secured funding. Quit Genius, Wondermind, Kona, Caraway and Wysa, for instance, have all raised venture funding within the last few weeks. During the second quarter, investment in digital mental health tumbled 53% year over year, after banner […]