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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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