Behavioral Health Business January 17, 2025
Once investor darlings, budding behavioral health companies have found it more difficult to raise funds over the last two years.
In 2021 and 2022, venture dollars were flowing freely into the space. Rock Health reported that investors poured a staggering $4.9 billion into behavioral health in 2021. In comparison, digital behavioral health companies raised $1.4 billion in 2024.
That’s not to say investors have lost interest in behavioral health companies. In fact, in 2024, mental health still ranked as the top-funded clinical indication of investment among digital health companies.
“Mental health is a global issue,” Heather Gates, audit and assurance private growth leader at Deloitte & Touche, told me in December. “I think, as a result of that, it lends...