US mental health start-up reaches US$3.3bn valuation

The US mental health start-up Spring Health has raised US$100m in  Series E funding, boosting its valuation to US$3.3bn.

Generation Investment Management led the round with participation from existing investors, including Kinnevik, William K Warren Foundation, RRE and Northzone.

Founded eight years ago to address the global mental health crisis, Spring Health’s employer benefit has grown to cover more than 10 million people through 450 directly contracted employers, strategic payer relationships, and 27,000 groups that access the solution through a channel partner.

The New York-based start-up uses AI to “empower” its care providers and help members get the care they need faster.

“Spring Health started as an academic research project that sought to prove technology could help caregivers get people healthier faster,” said April Koh, co-founder and CEO of Spring Health.

“Our continued growth trajectory means more people are getting the care they need and this new funding allows us to double down on our strengths, increase access, scale our impact, and continue to deliver even greater ROI to employers.

“I am grateful to our investors for their continued support and to welcome a new partner in Generation, an organisation that believes expanding access to mental health will influence global and generational change in human behavior.

“By providing world-class mental healthcare and decreasing overall employer spend on healthcare, we believe we’re on track to build one of the world’s most valuable companies.”

Anthony Woolf, growth equity partner at Generation Investment Management, said: “In recent years, there has been some improvement in how we address mental health, yet the critical challenges of access, affordability and effectiveness remain.

“Spring Health has scaled an incredibly effective network of mental health providers, capable of providing care to millions of people globally while aligning the needs of patients, providers, and employers.

“We’re proud to partner with the Spring team to create a more sustainable and equitable world.”

Christian Scherrer, senior investment director at Kinnevik, added: “Ever since leading Spring Health’s funding round in 2021, the company surpassed our expectations across all important metrics, launched several groundbreaking new products, and delivered clinical and financial results to clients.

“We are proud to continue our full support for April, Adam and the Spring Health team as they set new standards in mental healthcare each day, across access, quality, data and automation.”