Mental health startups had a stellar year last year with global investment in them rising 139 percent to $5.5 billion, according to the CB Insights 2021 State of Digital Health Report. Most of those agreements were at an early stage.
That phenomenon was repeated in the latest funding news that came out last week from the New York-based company. Mantra Health which announced its $22 million Series A funding round. The company, which helps students address mental health, also announced the launch of its digital mental health program for college students with long-term mental health issues.
VMG Partners led the round, with contributions from Alumni Ventures, Elements Health Ventures, New Market Venture Partners, and 14W. Additionally, Baleon Capital, Canaan Partners, City Light Capital, Global Founders Capital and Western Tech Investments, all return investors, contributed to the round.
Mantra will use the funds from this round to develop to diverse network of providers for your digital mental health clinic. Most Mantra providers identify as LGBTQ+ or BIPOC to provide culturally competent care, according to the news release.
The funds will help develop Mantra’s clinical infrastructure and quadruple the team over the next twelve months, according to the press release. Mantra plans to reach a wide range of young adults, from those with serious mental illnesses to those with subacute illnesses. In addition, part of the funding from this round will go to the Mantra College Mental Health Provider Diversity Scholarshipwhich began in June 2021. The scholarship supports graduate students with marginalized identities who are working towards a degree in the fields of mental health.
“We are at a point of no return when it comes to mental health advocacy, and we immediately need support systems to address the growing mental health crisis among young adults,” said Ally Tam, Partner at VMG Partners. “Mantra Health has become a preferred provider for universities/colleges due to its collaborative and personalized approach to providing quality mental health for young adults and their unique lives on campus. They are a prime example of how specialization enables digital health companies to deliver the best care possible through new forms of care and delivery models.”
Mantra offers a digital mental health clinic, including therapy and psychiatry, for young adults that is affordable, culturally competent, and of high quality. In the fall of 2020, Mantra launched its higher education solution in which Mantra has partnered with colleges and universities to offer its mental health services to students. It was well received by college campus advising centers for its quality, evidence-based, collaborative approach to driving student access to care and better outcomes.
“What sets Mantra apart is how focused they are on being an extension of their service. That feels unique in this space,” said Dr. David Walden, director of the Hamilton College counseling center, who has used Mantra for almost a year and a half. “Most of the products you buy are based on the idea of ’this is what we offer’, but the Mantra offer is based on ‘what You offer, and how we can partner with you’. It feels like a true partnership.”
The Mantra program is currently aimed at public and private colleges and universities. Clients include a variety of campuses, from the Massachusetts Institute of Technology to Miami Dade College to Penn State. To date, all universities using Mantra’s program have renewed their partnership, according to Mantra’s press release announcing its Series A funding. Its psychiatry and telehealth therapy services are available to students nationwide.
“Mantra’s platform is very easy to use. The key to any collaboration platform is that it be intuitive. Clinicians have to navigate a variety of EMR platforms every day, and a system that requires multiple menus or steps to get where you want to go can be challenging,” Walden said. “We found that the platform allows for quite seamless communication between the doctors on our staff and the doctors who work for Mantra. All information is easily accessible and open, facilitating continuity of care. Physicians can send messages to each other and to their clients, and can share information quickly and efficiently.”
Other companies, like TimelyMD, fill the space but don’t focus on behavioral health the way Mantra does, according to an email with Ed Gaussen, CEO and co-founder of Mantra Health. Some digital mental health clinics have also raised big rounds of funding, but they don’t have a specialized care model tailored to young adults, Gaussen said.
“Our mission is to become the category leader in young adult behavioral health. We work with schools of all shapes and sizes,” said Gaussen. “[Much] of our revenue comes from partnerships with higher education institutions. Most of our patients are college students receiving care sessions sponsored by their school.”
Photo: Getty Images
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