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VCs Step Up Investing in Mental Health Startups

Source: CB Insights

Venture capitalists are paying more attention to mental health.

Venture investment in mental health startups has nearly quadrupled since 2014, thanks in part to a 2008 federal law that required health insurers to treat mental health equally to other kinds of health care.

In 2017, VCs invested $191.3 million across 33 deals in the sector, up from $61 million invested in 2014 across 12 deals, according to CB Insights. While that’s a fraction of the $6.9 billion venture capitalists invested in 485 digital health deals in 2017, it still reflects what investors and others say is a growing awareness of the potential costs to businesses of untreated mental illness.

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An earlier version of this article misspelled the name of Quartet CEO Arun Gupta. Also, an earlier version incorrectly stated that Parsley Health operates only in New York and San Francisco. It also operates in Los Angeles.

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‘Historically, primary care and mental care have been bifurcated.’