Spring Health Raises $71M, Hits $2.5B Valuation

Spring Health Raises $71M, Hits $2.5B Valuation Kristen Fedeli

Spring Health notches $2.5B valuation

With $71M in fresh funding, the B2B behavioral health platform is touting “phenomenal growth.”

Working with employers and health plans to offer digital support, therapy, and coaching, the company said it now covers more than 5M people.

Founded in 2016, Spring Health has raised more than $370M in total capital while doubling its headcount last year to keep pace with demand.

Barriers to care. Despite a flood of funding and the promise of innovation, digital mental health startups still face an uphill climb.

On the positive side, Headway secured $100M earlier this year. And Lyra Health’s B2B mental health business earned a $5.5B valuation last year.

But, as digital health funding dried up in 2022, the mental sector saw investment activity sink to $2.1B from $4.8B the previous year.

Quality control. More concerning than a lack of venture capital, the sector’s medical efficacy, patient privacy, and prescription-writing practices have been called into question.

As Stat News writes, the term “digital mental health” is overly broad, making it difficult for consumers, investors, and companies to effectively navigate the space.

Punchline: As our collective mental health suffers, it’s all hands on deck to address the crisis. While Spring Health seems to have found a sustainable path forward, mental health startups are still trying to balance delivering business results with ensuring health outcomes.