Digital behavioral health benefits company Spring Health has raised $71 million in a new funding round. This brings the unicorn’s valuation to a whopping $2.5 billion.
New York-based Spring Health is a B2B behavioral health organization that teams up with employers and health plans to offer digital support, meditation exercises, coaching, therapy and medication. Its clients include Microsoft, The Hershey Company, JB Hunt, Bumble and Fujifilm.
The new round comes less than two years after the company closed a $190 million Series C funding round. In total, the company has raised more than $370 million in venture funding.
While the company has not released the names of the investors contributing to this new round, it did note that its existing investors wanted to increase their ownership stake.
“Our investors were so excited by the growth and success of our company that they were eager to ‘double down’ by increasing their ownership in what they describe as one of the most successful portfolio companies they have ever invested in,” Spring Health wrote in a blog post.
Kinnevik, Guardian Life Insurance Company of America, Tiger Global, GingerBread Capital, Operator Partners, Northzone, Rethink Impact, William K. Warren Foundation, Work-Bench, SemperVirens, Able Partners and True Capital have previously backed Spring Health.
Founded in 2016, the startup has been focused on growth of late. It announced that the company doubled its headcount in 2022.
Spring Health has also expanded through M&A. In May of 2022, it announced the acquisition of family wellness-focused startup Weldon for an undisclosed amount. This deal added more family-focused behavioral health services. These offerings included helping families deal with sleep, behavior, conflicts, grief, development, neurodiversity and screen-time issues.
Overall, digital behavioral health funding has dipped over the last year. In 2022, digital behavioral health companies raised $2.1 billion in funding, less than half of the $4.8 billion raised in 2021, according to Rock Health.
New digital behavioral health unicorns have become a rarity in 2023. Apart from reports that Headway closed a $100 million investment, mega deals were almost nonexistent in the digital mental health space during Q1.
Still, historically B2B behavioral health startups have successfully caught investor attention. Lyra Health, which sells corporations mental health benefits for their employees, nabbed $235 million in Series F funding in 2022.
Additionally, B2B mental health company Modern Health raised $74 million in Series D funding in 2021, earning itself unicorn status.