With its second funding round of the year, the San Francisco startup hopes to expand its business and its worldwide network of providers.
Modern Health, maker of a mental health and wellness platform for employer customers, has uncorked a $51 million Series C funding round headed by Battery Ventures. The raise also included prior investors Kleiner Perkins, Founders Fund, 01 Advisors, Afore Capital and Okta cofounder Frederic Kerrest, as well as new back Felicis Ventures.
This raise – which lands less than a year after Modern’s $31 million Series B from January – now brings the company’s lifetime capital raise to $93 million and, according to Modern, its valuation to more than $500 million.
WHAT IT DOES
Based in San Francisco, Modern Health provides employers and their staff with a package of mental health benefits coordinated within an app. After completing a self-assessment, the system puts together a program of digital wellness content covering stress, relationship guidance, financial wellbeing and other focus areas that the user is interested in. If necessary, the platform will also connect patients to virtual group sessions, scheduled one-on-one coaching sessions or virtual therapy from a live therapist.
“With a shortage of therapists and rising costs blocking access to support, the mental health industry is reaching its breaking point,” Alyson Watson, founder and CEO of Modern Health, said in a statement.
“We are dedicated to de-stigmatizing mental health in the workplace and ensuring as many people as possible get cost-effective mental health care. … Every employee should have equal access to quality mental health support – and we will continue to expand our offering to respond swiftly to demand.”
The startup’s business has been on the rise since its last funding round. Modern said that it has tripled its staff and doubled its customer base since January. Pixar, SoFi, Okta, Electronic Arts, Clif Bar, Udemy and TripActions are all listed among Modern’s collection of nearly 200 enterprise clients.
WHAT IT’S FOR
In addition to meeting demand, Modern said that it will be looking to add new offerings to its platform and expand its network of providers from 35 supported languages to more than 50.
A number of digital health startups like Vida Health and Happify Health have crafted their offerings to fit into employers’ benefits plans, with mental health and wellness programs chief among their offerings.
Others, like Lyra Health, Ginger and Unmind, are more akin to Modern in their focus on mental health and the employer market. Not to be lost in the shuffle are brands like Talkspace or Headspace that are better known for their consumer products, but also offer packages for large employers.