Meditation app Headspace and teletherapy company Ginger are merging to form Headspace Health, a newly formed entity valued at $3B.
- Last year, Headspace added $93M in Series C funding ($216M total).
- Earlier this year, Ginger reached a $1B valuation following $100M in funding from Blackstone Group (amassing a total of $220M to date).
Combining mindfulness and mental healthcare, Headspace Health will deliver meditation, behavioral health coaching, therapy, and psychiatry to consumers, employers, and health plans. The merger enables:
- ~100M users across the US and 190+ countries
- 2,700 enterprise and health plan customers
- $300M projected gross sales by the end of 2021
Joining forces, executives say, Headspace Health now has “the world’s largest mental health data set, which will be leveraged to deliver highly personalized care.”
Ther-app-y for all. As we detailed in Issue No. 139, Mental Healthcare Goes Digital, venture-backed startups are attempting to revolutionize a broken industry.
- Last year, businesses in the digital behavioral health space raised a record $2.4B in funding, up from $915M in 2019.
Although the industry is still in its infancy, and even as experts debate if the new entrants are doing more harm than good, expect to see more funding flow to startups leveraging tech to cut costs, scale psychiatric expertise, and lure patients away from the archetypal therapist couch.
