This post has been updated with emailed comments from Tomer Ben-Kiki, Happify CEO.
Happify Health, a digital health business in the subsector of behavioral health, has raised a fresh round of capital following the launch of a b2b business model last fall and roll out of a research unit, Happify Labs.
TT Capital Partners, based in Minneapolis, led the $9 million round for the New York-based company with participation from Marketplace Fund II and Hills Capital among other previous investors, according to a news release. The funding will be used to accelerate Happify Health’s entrance into the healthcare and employer market by expanding its team, said Tomer Ben-Kiki, Happify CEO, in an emailed response to questions.
In April the company announced a partnership with Humana to provide emotional health support to chronic heart condition patients through digital interventions.
For Happify Labs, the investment will help it advance the scientific research in mental health it has initiated by creating more collaborations with researchers.
Part of the goal for Happify Labs was to enable the company to team up with academic researchers to conduct clinical trials on behavioral health interventions involving positive psychology and neuroscience. Researchers would gain access to data from Happify users. The unit works with commercial partners to improve access to affordable and readily available emotional health and well-being solutions. Ambitions for the new unit include addressing resilience, mindfulness, depression, anxiety, chronic pain and mood disorders on-demand.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Ben-Kiki said the company has worked on four outcome studies to date. One has been published in the Journal of Medical Internet Research. Another is currently under review with a medical journal and two studies are in progress.
Happify’s customers include health plans, employers and care delivery systems.
Last year, Happify raised $5 million to support its growth and add staff. Marketplace Fund II and Hills Capital led the Series B round, which coincided with the launch of Happify Health.
Asked what’s on the company’s to do list for the next 12 months, Ben-Kiki said Happify plans to increase its market penetration and establish stronger presences with the top health plans and large employers in the country and plans to publish key findings around chronic disease and mental health.
Separately, Lyra Health, another digital health business in the behavioral health arena, formed a partnership with Welkin Health, according to an emailed news release. The deal gives Lyra’s customers access to Welkin’s case management tool to streamline workflows. It consolidates email, text, and phone communications between patient and care providers to create personalized prompts, health assessments, and care plans to improve interactions between them.
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