Behavioral Health Business June 13, 2024
Once sidelined as a digital-only contender, venture capital is becoming a more mature player in the behavioral health arena. And the numbers are starting to tell the tale.
In the first quarter of the year, venture capital firms invested $350 million in the behavioral health sector, according to M&A advisory firm Mertz Taggart. Similar quarterly figures from Rock Health back up this notion as well.
This could be a particularly interesting dynamic because several private equity firms have their capital tied up in practices they purchased at sky-high valuations, meaning they are still maneuvering the best exit options.
Meanwhile, venture firms still have some dry powder on their hands, though not nearly the levels they had in 2021 and 2022,...