On Monday morning, behavior health company SonderMind scored $27 million in its Series B funding round. General Catalyst led the round with participation from F-Prime Capital, Kickstart Seed Fund, Diōko Ventures and Jonathan Bush.
WHAT THEY DO
The Denver, Colorado-based company helps link up patients and therapists based on specific needs and geographic location. The tool checks to make sure the therapist matched takes the patient’s insurance and can meet the patient’s mental health needs.
Patients can choose to connect with therapists online or in-person and set up an appointment through SonderMind. Before matching with a therapist, users are asked what kind of support they are seeking. The categories range from anxiety and depression to addiction and medication needs.
WHAT IT’S FOR
The new funds are expected to help the mental health startup expand its geographical footprint into Texas and Arizona. Currently the service is focused specifically on Colorado. The startup is also looking to enter into new markets and ink deals with new payers, employers and health systems.
“This financing provides the fuel to support our growth objectives and advance our mission to make behavioral health more accessible, approachable and utilized by building a modern marketplace that holds great appeal to both clinician and patient,” Mark Frank, cofounder and Chief Executive Officer of SonderMind, said in a statement. “We are thrilled by this new partnership with General Catalyst given a shared belief in how important the issue of mental health is for our country and General Catalyst's proven expertise in advising and lending connectivity to breakthrough companies across industries and within healthcare."
MARKET SNAPSHOT
The digital mental health industry is booming. Two years ago SonderMind first announced its $2.5 million seed-funding round. Since then the industry has continued to grow since this funding.
Last year by the end of Q3, Rock Health reported that behavioral health companies scored a total of $416 million over 16 deals. Some of the biggest names in the behavioral health space include Talkspace, Headspace, and Calm.
ON THE RECORD
“The need for mental health support has never been more acute, yet frustrations abound for individuals unable to access care. Mark and the SonderMind team have thoughtfully developed a platform that is equally beneficial to both clinician and patient," Holly Maloney, managing director at General Catalyst, said in a statement. "SonderMind changes the game by taking the friction and stigma out of finding the right therapist, all while maximizing insurance coverage and measuring the outcomes of care.”
