The pandemic has already exacerbated an existing mental-health crisis and software-enabled mental-wellness startups like Modern Health have seen an explosive surge in popularity among investors and consumers as a result.
On Tuesday, the San Francisco-based platform raised $51 million in a Series C round led by Battery Ventures to manage the increased demand.
The company has had quite a busy year financially. The latest round comes less than 12 months after the company announced its Series B, which brought its total funding to over $95 million. Modern Health’s valuation is now between $500 million and $1 billion, according to the company.
The platform offers up an array of mental-health benefits for employers to choose from. The company creates personalized care plans for each of its users based on their specific goals and needs. The app can be utilized to access therapists, coaches, meditation exercises and other digital content that could be beneficial to improving one’s mental health.
“Every employee should have equal access to quality mental-health support and we will continue to expand our offering to respond swiftly to demand,” Alyson Watson, founder and CEO of Modern Health, said in a statement.
Since the last round of funding, Modern Health has tripled its employee headcount and doubled the size of its customer base, according to the company.
The new funding will be used to help the company continue to scale its platform. As part of its growth efforts, the 127-person company expects to double its headcount by the end of 2021.
Modern Health is hiring for dozens of open positions across multiple departments. Roles are available on its website in sales, marketing, engineering, finance and more.
Pandemic-related closures, layoffs and stay-at-home orders have made the year difficult for many around the world. Nearly 31 percent of adults in the United States reported feeling symptoms of anxiety or depression in late June, according to a survey by the Centers for Disease Control and Prevention.
Not only that, but the percentage of respondents who reported struggling with suicidal ideation is significantly higher for Black and Latinx communities, unpaid caregivers and frontline workers.
This trend combined with a nationwide shortage of therapists and growing costs of services, Watson explained in a statement, means the mental-health industry “is reaching its breaking point.” She hopes Modern Health can help close the gap between demand and availability.
“We are dedicated to destigmatizing mental health in the workplace and ensuring as many people as possible get cost-effective mental healthcare,” Watson continued.
Over 150 companies are signed on to the company’s platform and a couple Bay Area tech giants top the company’s long list of clients.
Lyft, Chime, Postmates and GitLab join other big names like Pixar and Electronic Arts in providing their employees with access to mental healthcare via Modern Health.
Felicis Ventures, Kleiner Perkins and Founders Fund participated in the round, among others.
