Behavioral Health Benefits Provider Spring Health Raises $76 Million

By Annie Baker ● November 21, 2020
  • Spring Health — a leading provider of behavioral health benefits with a comprehensive solution for employee mental well-being — announced it has raised $76 million in Series B funding led by Tiger Global

Spring Health — a leading provider of behavioral health benefits with a comprehensive solution for employee mental well-being — announced it has raised $76 million in Series B funding led by Tiger Global. GingerBread Capital and Operator Partners (a newly formed venture capital firm by Nat Turner and Zach Weinberg, the cofounders of Flatiron Health) also joined this round. Existing investors Northzone, Rethink Impact, William K. Warren Foundation, Work-Bench, SemperVirens, Able Partners, and True Capital also joined the round. And new individual investors in the Series B round also include six-time NBA all-star and NBA champion Kyle Lowry of the Toronto Raptors, and two-time WNBA all-star and 2018 WNBA MVP Breanna Stewart of the Seattle Storm.

Spring Health is known for providing a single front-door approach to any type of care including: digital exercises, coaching, therapy, medication, or employee assistance program (EAP) services — leading to faster outcomes, higher engagement, and healthier, happier employees. And the company’s unique approach to mental health was founded in science and academia, and based on a proprietary mix of technology with a human touch that allows Spring Health to achieve world-class outcomes incredibly fast.

Spring Health and Koh’s remarkable fundraising success comes at a time when investments in women-led companies have been expected to be the worst since 2017, according to PitchBook. Only 5% of female entrepreneurs have raised Series B financings.

And the upheavals of 2020 including COVID-19, the presidential election, and attention brought to continuing racial injustice have led to more and more people experiencing anxiety, depression, and burnout. It is a time when many leaders have come to understand just how important employee mental well-being is to the success of their organizations.

The funds from this Series B round will be used for further refining Spring Health’s Precision Mental Healthcare approach using cutting-edge technology to match each employee to the most effective care for them. And with the aim to become a global leader in behavioral healthcare benefits, Spring Health will triple its New York-based team and expand its capability to deliver the most personalized and most effective mental health experience possible.

Since the closing of the recent $22 million Series A in January 2020, Spring Health tripled its headcount. And the company also launched its capabilities globally, thus making mental healthcare accessible to individuals in over 200 regions. Plus Spring Health expanded to offer full EAP services, enabling employers to fully replace their employee assistance programs with Spring Health’s comprehensive solution.

This additional funding round brings the company’s total to $106 million to date.

KEY QUOTES:

“Mental health is the defining problem of our time. Yet it’s still full of trial-and-error. At Spring Health, we’re demystifying mental health and making high-quality care seamlessly accessible for everyone. Our approach precisely delivers the personalized care plan for each individual no matter where they are in their mental health journey, and we guide each individual through their journey through a dedicated navigator.”

— April Koh, co-founder and CEO of Spring Health

“Mental health awareness has come to the forefront in 2020. We’re confident Spring Health will be a leading mental health solution for employers with its clinically-proven technology and world-class providers. Breaking down barriers and delivering effective mental healthcare to employees should be a top priority for companies in all industries. We’re impressed by Spring Health’s capability to deliver personalized solutions for each individual.”

— Scott Shleifer, partner of Tiger Global

“April and Adam are extraordinary co-founders who have proven that they are executing by building a world-class platform for precision mental health services with better health outcomes and high value to employers. Spring Health has proven to be essential with the workforce going through increasing pressure amidst a global pandemic. We’ve been impressed by the clarity of vision and speed of execution by April, Adam, and their team since we’ve invested in their Series A in January 2020. The company is poised to become a substantive and transformative healthcare tech company.”

— Pär-Jörgen Pärson, general partner at Northzone