- Mental health and wellness platform Modern Health announced it has raised $51 million in Series C funding led by Battery Ventures. These are the details.
Mental health and wellness platform Modern Health announced it has raised $51 million in Series C funding led by Battery Ventures. And other participants in the round include Felicis Ventures and existing investors Kleiner Perkins, Founders Fund, 01 Advisors, Afore Capital, and Okta’s Frederic Kerrest. This round of funding comes less than a year after Modern Health announced a Series B funding round. And it brings the company’s total funding to over $95 million and current valuation between $500 million and $1 billion.
Mental health has become a major pillar of the corporate benefits stack as employers recognize the impact of mental health issues on the workplace — which can result in as much as $500 billion of lost productivity per year. And COVID-19 has accelerated the existing mental health crisis, one that will persist after the pandemic is resolved and the number of covered lives on Modern Health’s platform has more than doubled this year as a result.
Modern Health — which is an employer-focused solution offering a fully integrated mental health platform — uses an evidence-based approach that provides employees access to mental health care for all levels of need, utilizing therapists, coaches, and digital content to deliver support through a comprehensive and consumer-friendly app.
And since the last round of funding, the company has tripled its employee headcount and doubled its customer base, now serving more than 190 enterprise clients globally. And Modern Health’s client roster includes early adopters of the platform (Pixar, SoFi, Okta, Carta, Electronic Arts, Rakuten) and a growing list of more recent additions, including Clif Bar, Zendesk, Udemy, and TripActions.
Going forward, Modern Health will use this funding to meet accelerating demand for its mental health services, expand its global provider network from 35 languages to over 50, and continue to provide new and innovative solutions to support healthy workforces around the world.
As Modern Health continues to grow at scale, two industry veterans have joined the company’s board: 1.) Roger Lee, General Partner at Battery Ventures and lead investor in Gainsight and StockX and 2.) Penny Herscher, former CEO of Simplex and FirstRain.
KEY QUOTES:
“With a shortage of therapists and rising costs blocking access to support, the mental health industry is reaching its breaking point. At Modern Health, we are dedicated to destigmatizing 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.”
– Alyson Watson, founder and CEO of Modern Health
“It’s clear that providing access to comprehensive and accessible mental health resources has a lasting impact on a company’s employees — and its bottom-line. Modern Health is not only dedicated to increasing access to critical mental health support across the globe, but also to helping companies build stronger, more resilient workforces. Watson and the entire Modern Health team are working toward a better future for mental health care.”
– Roger Lee, General Partner at Battery Ventures
“Employers are waking up to the fact that their medical claims costs were already heavily driven by mental health issues going unaddressed. The pandemic is shining a spotlight on a larger problem, and the companies who address it now will be the ones who keep costs under control and deliver successful profits moving forward. Modern Health’s innovative solution addresses urgent disparities in mental health care access and delivers personalized care recommendations to meet individuals where they are. It’s an absolute honor to join this visionary company as it grows.”
– Penny Herscher, former CEO of Simplex and FirstRain.
