Digital behavioral health company SilverCloud recently announced that it had earned an additional $16 million in Series B funding. The round was led by MemorialCare Innovation Fund, with participation from LRVHealth, OSF Ventures, and UnityPoint Health Ventures.
The company works with provider organizations to deliver digital mental health programs. These include support for common conditions like anxiety or depression, or programs for more specific situations like mental wellness with a chronic condition. It works with providers in the U.S. and Europe.
Behavioral health funding is an area of increasing venture capital investment, according to a recent Rock Health report.
“Digital behavioral health is showing signs of a maturing investment sector with: more funding and larger deals, a greater number of later stage companies, and a consistently strong pipeline of early stage innovation,” the Rock Health report read.
Through Q3 of 2019, 16 digital behavioral health companies raised a total of $416 million, which is 8 percent of overall digital health funding in the same time period. The number of behavioral health deals has grown steadily since 2012, when there was just one such deal, to 16 in 2016. Digital behavioral health deals have remained near or above that level ever since.
Also according to the Rock Health report, the average behavioral health deal size through Q3 2019 was $26 million, up 73% from 2018. Since 2016, 30 to 40 percent of annual behavioral health deals have been Series B or later; however, there are still plenty of emerging companies, with 60 percent of companies getting early-stage funding.
Rock Health also noted that in 2019, four behavioral health companies—Talkspace, Quartet, Pear Therapeutics, and Calm—raised rounds of $50 million or more.
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Read the original Rock Health report here.