As more companies look to expand mental health benefits during the pandemic, investors continue to pour funds into startups helping overcome longstanding barriers in access to care. One of these companies, Spring Health, recently raised $75 million in funding.
The New York-based startup offers coaching, therapy and employee assistance program (EAP) services. April Koh, Abhishek Chandra and Adam Chekroud co-founded the company in 2016.
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“I had watched loved ones try one solution after another — some provider, some medication, some program. Every time something didn’t work, it became harder and harder for them to muster up the courage and the hope to find something that would,” Koh, the company’s CEO, wrote in an email. “I started Spring Health because I wanted to build a future where the hopelessness of guessing is replaced with the hope of data-driven, accurate care.”
Spring Health says it uses a proprietary assessment to develop personalized care plans for each member, including digital exercises, coaching, therapy or medication. Users have access to a dedicated care navigator that can help refer them to providers or other benefits. They also can access in-person or virtual therapy, though most sessions have been virtual as of late.
Some of its customers include Whole Foods, Instacart, Equinox and Sysco. The average engagement rate has been around 30%, Koh wrote.
After closing a $22 million series A in January, Spring Health expanded to offer full EAP services. It also tripled its headcount.
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“Spring Health has proven to be essential with the workforce going through increasing pressure amidst a global pandemic. We’ve been impressed by the clarity of vision and speed of execution by April, Adam, and their team since we’ve invested in their Series A in January 2020,” Pär-Jörgen Pärson, general partner at Northzone, said in a news release.
Its most recent $75 million round was led by investment firm Tiger Global, with participation from GingerBread Capital and Operator Partners, along with several previous investors. Tiger Global Partner Scott Shleifer said in a news release that the firm was impressed by Spring Health’s capability to deliver personalized solutions. Six-time NBA all-star Kyle Lowry and two-time WNBA all-star Breanna Stewart also joined as individual investors.
Spring Health plans to use the funds to further refine its technology and triple its team in New York.
“The pandemic and other recent events have taken a toll on individuals’ mental well-being, and we find that organizations are starting to really understand the importance of providing personalized mental health resources to their teams,” Koh wrote.
Photo credit: Benjavisa, Getty Images
