Thriving or surviving? Mental health check-in
The healthcare system has been failing mental health patients for too long.
Under-resourced, understaffed, and overstretched, mental care services struggle to meet the needs of more than 20% of young Americans and adults who experience a mental or behavioral health disorder.
But even if the staffing drought was over, other barriers to access wouldn’t abate:
And then there’s this lack of awareness: Despite 45% of employers ramping up their investments in employee mental health, more than half of employees are still unaware of their mental health benefits.
Given the harrowing ordeal mental health services are today, we’d say that there’s a unique opportunity for digital health to step up and shatter the barriers.
Mental health startups are bouncing back
Since their prime time in 2022, mental health startups have had a hard time securing rounds of comparable value.
But this year, the funding landscape seems to be on track for a rebound.
In H1 2024, U.S. mental health startups raised $682 million, which made mental health a top-funded category among clinical indications.
Covered care. One common thread between the largest funding rounds this year is a focus on insurance-covered mental health care. Specializing in online psychiatry covered by insurance, Talkiatry netted $130 million in the largest mental health financing this year.
Underserved populations. Investors are doubling down on innovative solutions that aim to expand mental health access to vulnerable populations. Bringing outpatient mental health and substance use care to communities in need, Forge Health secured a strategic growth investment from MFO Ventures.
Lack of therapy tools = funding deals. The ongoing demand for therapy solutions propels the mental health sector forward, catching investors' eyes. Backed up by a proprietary matching algorithm to connect patients with the right therapists, Two Chairs locked up a $72 million series C round.
Tech meets mind
Technology has made mental health support more accessible, flexible, and tailored than ever.
Current innovations in mental health and wellness integrate technology at many levels, making it a driving force behind advancements in the field.
Preventive mental health technologies
Mental health disorders are a worldwide epidemic that could cost the global economy up to $16 trillion between 2010 and 2030.
But what if we could prevent the onset of mental health problems or reduce their severity?
What. AI-powered screening tools, stress management apps, virtual chatbots, and other predictive tools can identify individuals at risk for mental health disorders or flag early signs of relapse.
How. By analyzing survey data, EHR records, wearable device data, and even social media posts, mental health screening tools can detect early warning signs of mental health issues, streamline referrals, and assist people in self-diagnosis.
Success story. Incorporating an AI-based triage model, iFeel inspires employees’ mental well-being and lowers the cost of mental health for businesses and insurers. In May, the startup secured $20 million in Series B funding.
AI-powered self-therapy
Beyond introducing innovations to diagnosis, treatment, and adherence to therapy, AI-enabled mental health applications give individuals the tools for self-regulating their health needs.
What. From GenAI chatbots to mood trackers and CBT apps, mental health self-therapy solutions are designed with the overriding purpose of equipping individuals with personalized mental health support and guidance. Lately, Generative AI has taken it up a notch with adaptive content, simulated conversations with a human therapist, and real-time feedback on user responses.
Almost as if you had a therapist in your pocket.
The benefits of this AI modality apply to all stakeholders:
✅ Patients may benefit from lower costs, greater convenience, and privacy.
✅ Mental health clinicians may gain from improved triage and referral management.
Recommended by LinkedIn
✅ Employers and insurance companies may be drawn to the cost-effectiveness of AI-powered therapy.
Real-world use case. The U.K.’s National Health Service has begun offering a chatbot called Wysa to assist adults and teens with stress, anxiety, and depression management.
Success story. Designed as an AI conversational bot to support individuals in managing anxiety and excessive worry, Clare&Me raised $4 million in funding to develop the world’s first Clinical Large Language Model (CLLM).
WD-supported diagnosis
To battle the ongoing mental health crisis, a non-standard, scalable approach is needed.
What. Once reserved for hospital settings, now commercially available wearable devices such as EEGs, tDCS, and others can aid individuals in managing depression and anxiety, supporting a holistic approach to treating stress-related conditions and promoting well-being.
How. By combining the expertise of technologists and clinical experts, startups can develop wearable device solutions that are both technically sound and clinically effective.
Success story. Neurovalence, the first company focused on noninvasive direct stimulation of the vestibular nerve, bagged $2.65 million in funding and received clearance from the FDA for its head-mounted device that uses electronic brain stimulation for anxiety treatment.
Mental health should be a holistic initiative
Banking on technology to solve the mental health crisis is not the only answer.
Neither is a singular focus on privatizing mental healthcare.
📌For technology to make a real difference, it must be integrated into traditional care systems (= collaborations between digital tools and healthcare providers).
📌Policy changes, increased funding for mental health services, and public awareness campaigns will become instrumental in destigmatizing mental health.
📌 To improve the accessibility of mental health services, insurance companies need to standardize coverage options. A collaborative effort from policymakers, healthcare providers, and the public is needed to eliminate the gaps in coverage between mental and physical health.
📌 As AI and digital tools become more prevalent in healthcare, appropriate safeguards must be in place to ensure the privacy, security, and impartiality of data in private hands.
Helping innovators drive change
For startups looking to create a lasting impact in mental health care, it’s important to consider the specific tech, regulatory, and business challenges that come with mental health digital products.
Helpful guiding questions:
At Orangesoft, we support ambitious startups in building innovative solutions to address the growing mental health crisis. Reach out to our team if you need help with your mental health application.
Mental health news