Motivo Health of Atlanta has secured $14 million in Series A funding led by insiders from Cox Enterprises, the parties Tell Axios.
Why it matters: The behavioral health industry is facing a huge shortage of specialists and Motivo, using technology, is addressing a major, overlooked barrier: the path to mental health licensing.
By the numbers: Motivo has seen 4x growth in the last 12 months, with the latest funding led by Cox bringing the total funding to $16.3 million.
- SteelSky Ventures and Great Oaks Venture Capital also participated in the round.
- The startup, with 23 full-time employees, has helped 1,500 therapists become licensed since its inception.
- Due to time and cost constraints, a staggering 64% of aspiring therapists who earn a master’s degree in counseling never become licensed, according to Motivo.
What they are saying: “The last five to 10 years have been about access, but now that the supply has run out, we need more doctors,” says founder Rachel McCrickard.
- McCrickard launched Motivo in 2018, prompted by her own uphill battle to license in rural North Georgia. “The nearest clinical supervisor was two hours away. It was a long, arduous and expensive process.”
Getting closer: After completing graduate school, the licensing process, depending on the state, requires 100 to 250 hours of supervision, which takes about two years for a typical charge of $90 per hour.
- That is unique. Other specialties, such as occupational and speech therapy, often do not require people to pay for their clinical supervisor.
How does it work: Motivo’s online marketplace connects aspiring mental health therapists with state-focused virtual supervisors, coordinating licensing requirements across both B2B and B2C.
- Its platform is now available in all 50 states, and the pandemic has encouraged states to allow virtual supervision. About 60% of the business comes from community behavioral health organizations and the rest from individual doctors.
- As Cox Enterprises’ Tim Howe sees it, Motivo is “democratizing the opportunity to get licensed.” On the B2B side, he adds that “we’ve only just begun to scratch the surface.”
- For no reason, aspiring doctors wouldn’t know where or how to find a supervisor, McCrickard adds. “You would be calling one by one. This automates the whole process.”
Of note: Reason has a strategy partnership with Elevance Healthformerly Anthem, to help increase the pool of qualified therapists throughout California.
Whats Next: With therapists required to recertify their license every year, McCrickard and Howe say there is an untapped opportunity on the continuing education side.
- Motivo plans to tap into its clinical supervisors for content creation, peer consultation and education on various topics, whether it be trauma-informed care or narrative therapy, for example, McCrickard says.
- It also plans to expand beyond supervision by developing a product to help fill clinical staffing shortages.
Yes, and: The newly backed company is adding new B2B contracts with behavioral health organizations, digital health companies, health plans, plus it intends to partner with graduate universities.
- New hires of sales leaders and software engineers will support your growth ambitions.
Details: The physician-led company promoted Dr. Carla Smith to clinical director earlier this year.
- Howe is a member of the board, along with Chris Cavazos, a former head of Humana’s EAP and employee wellness unit.
- In 2020, the company hired Michael Chen and Sarah Louragh as CTO and COO, respectively, of Airbnb.
A fun thing: Motivo means “foundation” in Portuguese, reflecting the company’s belief that supervision is the foundation of a therapist’s career.
Disclosure: Cox Enterprises recently agreed to acquire Axios for $525 million. Read more.
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