Grow Therapy secures $88M funding for virtual mental health platform

Provider-focused digital mental health company Grow Therapy announced it closed $88 million in Series C funding. 

The round was led by Sequoia Capital with additional investment from Growth Equity at Goldman Sachs Alternatives and PLUS Capital. Several artists and athletes also contributed to the round, including Dak Prescott, Anna Kendrick, Joe Burrow, Lily Collins and Jrue Holiday. 

Additionally, the company announced the launch of a novel measurement-based care system to improve patient experiences and help providers transition to value-based behavioral care. 

WHAT IT DOES

Grow Therapy’s platform connects mental health providers and patients for in-person and telehealth visits.

The company did not disclose what it plans to do with the funding round. 

“Our team believes that empowering people to find and engage with effective mental health support – regardless of their background, geography or financial circumstances – is the most pressing need of our time. The two announcements we’ve made today, including the close of our $88 million Series C from Sequoia Capital and Goldman Sachs Alternatives and the launch of our new measurement-informed care system, represent tremendous strides in helping us fulfill that goal,” Grow Therapy CEO Jake Cooper said in a statement. 

MARKET SNAPSHOT

The New York-based company has teamed up with numerous insurance providers, including Aetna, Humana, Cigna and United Healthcare to provide coverage in-network. 

Grow raised $75 million in Series B funding in 2022. Investors TCV and Transformation Capital led the round with support from existing investors SVB and SignalFire. Grow Therapy used the funds to build its team and expand the company’s insurance coverage impact, including for Medicare and Medicaid. 

Another virtual mental health company is Quartet Health, which closed a $60 million funding round as part of a strategic partnership with Independence Health Group. 

In 2021, Quartet acquired virtual psychiatry company Innovatel Telepsychiatry, and this year, partnered with older adult focused Clover Health to bring mental health services to its home care platform.

In 2022, Alma, which builds software and support for mental health professionals, raised $130 million in Series D funding. The round was led by investor Thoma Bravo with additional participation from Insight Ventures, Optum Ventures, Tusk Venture Partners and Cigna Ventures. The funding round brought the company’s total funding to $220 million.