Venture capital is backing more deals for mental health andwellness-based startups — and the deals are gettingbigger.

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That’s according to CBInsights, which reports that since 2012, the majority of suchdeals for mental health technology startups have been have beenearly-stage (seed/angel and Series A) rounds. But with the growingmaturity of the mental health and wellness sector, VCs are startingto back bigger Series A and B rounds more frequently.

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The $40 million Series B to Quartet Health in the second quarterof 2016 is the largest VC-backed mental health tech deal since2012, and VCs participating included Google Ventures, OAK HC/FTPartners, Polaris Partners and F-Prime Capital. The next largestdeal was a $37 million Series B for Headspace, from Spectrum Equity Investors in thesecond quarter of 2017. Next was a $35 million Series A for LyraHealth in the fourth quarter of 2015; backers for that dealincluded Castlight Health, Breyer Capital, Greylock Partners,Providence Ventures and Venrock.

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Seed/angel rounds historically account for more than 40 percentof deal flow each year; so far this year, they represent 52 percentof all deals. A few recent $2.5 million-plus deals include those toonline addiction recovery platform Workit Health, meditation app Simple Habit and daily motivational text messagingservice Shine.

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This year, Series A rounds account for 30 percent of mentalhealth tech deals, while Series B rounds have also been on therise. They grew to 23 percent last year, from almost none prior to2014, and the largest Series B deal to date this year was for $37million to Headspace.

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Series C still has a way to go, making up just 8 percent or lessof all deals in any year since 2013. According to the report, thisis largely because of the immaturity of the sector, but ascompanies grow and look for later-stage financing, that’s likely tochange.

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