Additionally, the surge in inventors funding mental startups can be attributed to the current crisis’s anxiety and stress.
What is Mental Health?
Mental health is the emotional wellness of a human being. Many are the times when the human race faces challenges that have a detrimental impact on mental health. As a result, people suffer from stress and depression, and some turn to addictions that worsen their condition.
On the other hand, a mental health startup is a profit business that seeks to improve people’s mental or emotional well-being.
VCs Shift to Mental Health Startups
Venture capitalists focus on a wide range of businesses, including mental health startups. Nowadays, firms in the wellness industry have incorporated technology in their service delivery. Today, mental health patients can get support online from a professional therapist. Since there is significant growth potential, venture capitalists have increased their funding to mental health firms that improve people’s mental health through online platforms.
In the second quarter of 2020, mental health-focused companies received billions of dollars from venture capitalists. However, experts have it that the rapid increase in funding of mental health companies can’t entirely be attributed to the pandemic. Though factors such as a recession and political unrest have contributed to increased mental illness cases, there is more than meets the eye.
People across the nation are increasingly becoming aware of their mental health. For example, Joon care recently received $3.5 billion to scale up its remote mental health services for teens and adults. On the other hand, Headway raised $32 million to develop a platform that allows the public to search for therapists who accept insurance payments.
In short, the increased awareness of mental wellness importance has led to the growth of this industry. Though the pandemic has largely contributed to increased mental health illnesses, the industry is expected to continue experiencing growth during the post-covid-19 period.