Venture capital is backing more deals for mental health and wellness-based startups — and the deals are getting bigger.
That’s according to CBInsights, which reports that since 2012, the majority of such deals for mental health technology startups have been have been early-stage (seed/angel and Series A) rounds. But with the growing maturity of the mental health and wellness sector, VCs are starting to back bigger Series A and B rounds more frequently.
The $40 million Series B to Quartet Health in the second quarter of 2016 is the largest VC-backed mental health tech deal since 2012, and VCs participating included Google Ventures, OAK HC/FT Partners, Polaris Partners and F-Prime Capital. The next largest deal was a $37 million Series B for Headspace, from Spectrum Equity Investors in the second quarter of 2017. Next was a $35 million Series A for Lyra Health in the fourth quarter of 2015; backers for that deal included Castlight Health, Breyer Capital, Greylock Partners, Providence Ventures and Venrock.
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