MindEd Ventures: Exploring the Future of Mental Wellness (2/2)
In the first article of this two-part series, I shared the three reasons why I believe the mental wellness industry is at an inflection point and will be one of the most exciting sectors to invest and build in over the next decade. A quick recap:
- We are in the midst of a growing mental wellness pandemic with billions of people becoming mentally obese and suffering from one or more sub-clinical conditions (e.g., severe stress, anxiety, fatigue)
- Mindfulness is at a tipping point as the number of people who participated in at least one mindfulness practice has increased 7x in the past decade — from 2% in 2012 to 14% in 2021
- Neuroscience is advancing quickly (catalyzed by exponential data growth) which will underpin a new wave of personalized and more impactful mental fitness solutions
In this piece, I will dig into the five themes within mental wellness I am most excited about. These themes are the initial fund thesis and focus for my new fund, MindEd Ventures. Each theme is vast and can be its own article. My goal is to pique interest with a condensed exploration of where we are today and what the future may hold. As we explore each theme, I will share the tools I have used on my own mental wellness journey over the past few years. I hope there will be inspiration and new ideas for those on their own journey.
Investment Theme #1: Mental Measurement
How much do you weigh? You can probably answer that question relatively accurately. Where are you on the mental health spectrum? That is much harder to answer.
Measuring mental health is a complicated problem. Today, the mental health industry relies on subjective surveys that ask us to measure our felt experience (e.g., GAD-7, PHQ-9, WEMWBS). There are a few major challenges with this method.
The biggest challenge is that surveys rely on our perception which is often biased and inaccurate. Imagine if you had to predict your weight based on how you felt. One moment you may feel heavy (e.g., after a greasy meal). A few hours later you may feel as light as a feather. But your weight hasn’t changed. The perception of our mental state is even more volatile. I am sure we have all experienced going to sleep feeling light-hearted and waking up feeling as if our world is caving in. As we try to recall old mental states, our perception gets even worse as we tend to over-index on how we felt at the end of a period. These biases impact our ability to understand the objective baseline trend of our mental wellness. Without an accurate baseline, we can’t set goals which is critical for motivation.
Another challenge is that surveys are tough to objectively calibrate (are we sure we experience anxiety the same way?) and by design narrow the range of potential states we can measure. Have you ever wondered how you would compare if measured against the most mentally well person on earth? I sure have. But for now, we are all flying blind.
We haven’t yet discovered the equivalent of weight or BMI for mental wellness. As a result, many mental wellness companies have built their own assessment frameworks to measure the impact of their products. This is inefficient, confusing and one of the biggest growth bottlenecks facing the industry.
Although we have a ways to go to reach a universally accepted framework to objectively measure mental health across the entire spectrum, progress is accelerating quickly and early-stage VC money is pouring in. There are two broad approaches that start-ups are taking in the space:
1/ External biomarkers. This approach focuses on analyzing how we engage with the external world to predict how we feel on the inside. Companies like Kintsugi & Sonde Health are using voice data, while HealthRhythyms is leveraging the data on how we use our phones. The technology is still being built, but early signs show a high degree of predictive correlation. It seems possible that by combining external biomarkers (voice, facial reactions, eye movement, sleep quality), we may be able to accurately measure what is happening on the inside. Once validated, the applications across health care and product development are exciting. That is why MindEd invested in Sahha.ai. They are building an ‘API for the mind’ which enables any company to easily build more empathetic and aware products.
2/ Internal biomarkers. As far as I know, HRV (Heart Rate Variability) has the highest correlation to our mental wellness of any readily available biomarker. Lief Therapeutics has built the first FDA approved wearable that tracks HRV real time allowing us to intervene real time as we start becoming stressed. Others are working on new biomarkers to measure what is happening on the inside. Happy Ring is making a big splash and promising to measure calm, stress and focus using skin conduction. Others are diving directly into the brain. Supermind and Field are using EEG technology to help us “meet our brain” and baseline how well our brain is set up to help us feel mentally well (more on them later). Kernel uses FNIRS technology and promises a consumer version of their brain helmet by 2030.
A biomarker less explored is the subtle energy that is emitted by our body. I have spent thousands of hours learning to observe the physical sensations in my body. Energy frequency and flow is the only sensation I can consistently correlate to how I feel. I don’t believe it has been scientifically validated (only based on my experience) so if anyone knows scientists working on measuring our bodily energy flows, please let me know.
It is only a matter of time until we have a universally accepted way to measure mental wellness. I can’t wait for the moment where I can set my New Year’s resolution as “I want to lose 10 lbs of mental weight”. The second order impact on the mental wellness industry will be massive.
Investment Theme #2: The Future of Brain Training
Mindfulness apps like Calm and InsightTimer have popularized meditation, making it the most widely used brain training tool today. Meditation is a broad term encompassing a wide range of techniques, each offering unique benefits. Just like doing a cardio, strength, or flexibility workout will produce different changes to your body, the type of meditation you practice will shape the changes in your brain.
Each type of meditation practice activates your brain in a different way. For example, a mindful or calm state is associated with lower frequency alpha or theta brainwaves in the front portion of the brain, while a state of love, gratitude and connectivity is associated with high frequency gamma waves. As we meditate, we train our brain to more quickly reach these states and eventually be in their states naturally. But since we all have a different starting point it may be harder for us to reach certain desired states than others.
Many people work with a coach when they decide to try a new workout program. A coach plays a key role in assessing our baseline and defining a pathway to our goals. They provide real time feedback on form as we try new exercises and adjust the pace based on progress. This personal touch helps us reach results faster and keep us motivated. Unfortunately, no meditation coach or app can look inside our brain and give us real time feedback or tips based on our meditation form. With meditation, we are on our own. I believe that is why meditation is one of the highest churn new habits and meditation apps have a (terribly low) 3.3% 30-day retention rate. It is hard to break through.
Last August, I visited the NeuroMeditation institute. My goal was to open up emotionally and improve my capacity to feel love. I was hooked up to electrodes and for the first time in my life got a sneak peak into my brain. After looking at my brainwave signature, it was immediately clear to me why I struggled with open-heart meditation. As I began training, we leveraged neurofeedback to give my brain instant feedback on how I was progressing in activating gamma brainwaves in the specific parts of my brain associated with open-heartedness. It was like having a personal trainer for my brain. I made more progress in 5-hours than I had in 5-years.
Neurofeedback use cases are far broader than just meditation. Neurofeedback brain training has been used to improve cognitive performance (e.g., enhance creativity) and battle mental disorders (e.g., depression, anxiety, ADHD). However, efficacy has been inconsistent. The biggest challenge has been that just like meditation, neurofeedback is a broad term covering many different approaches. There is a growing consensus in the scientific community that specific neurofeedback approaches are effective, especially if the training is coupled with other traditional psychotherapy approaches (e.g., NLP, affirmations). I have spoken to many people who say neurofeedback has been one of the most transformational interventions of their lives.
One of the biggest bottlenecks to scaling neurofeedback has been accessibility. Until recently you could only access neurofeedback at pricey retreats like 40-years of Zen or across a limited number of psychotherapy clinics around the world. Muse, Myndlift and BrainCo are among the early pioneers to bring neurofeedback into our homes. They have been successful in building the category and helping hundreds of thousands of people, but limitations in quality and cost of the sensors have prevented them from packing the full power of clinical neurofeedback into their initial devices.
Technology innovation in neurofeedback hardware and software has advanced quickly over the past 2–3 years. Sensor quality has improved and costs have decreased by up to 3x. The next generation of consumer neurofeedback devices will allow us to experience the full power of personalized brain training from our homes. As they gain traction, we will have the data to prove which neurofeedback methods work best to improve mental wellness and performance. Employers — and eventually payers — will take notice. In 5–10 years, I believe neurofeedback-driven brain training will be as common as going on a run or hopping on a bike for a spinning class.
MindEd is lucky to have invested into Supermind and Field, two companies building this future. But they are not the only ones. I am eagerly following Neurable and Sens.ai who are both set to launch their products in early 2023. I imagine the early pioneers will soon be launching the next version of their headsets too. I can’t wait to see how these new tools will help millions of people with their mental fitness goals over the next 5 years.
Investment Theme #3: Scalable Peak Experiences
Whenever I speak with someone who is deeply committed to mental fitness, I ask about their source of motivation. Almost every story begins in one of two ways.
Most stories begin with a deeply challenging experience. Either the person suffered from a severe mental or physical illness (usually depression), had a breakdown, or lost a close loved one. I refer to this as downside awareness. Others speak about a peak experience event that increased their state of consciousness and made them see life through a different prism. I call this upside awareness.
It is difficult for us to make a rational trade off amongst competing priorities if we cannot internalize the benefits of mental mastery. Especially in our society that is desensitized to stress and anxiety, and emphasizes material success as the key to happiness and joy. Peak experience events can offer a momentary glimpse into what a 10 out of 10 mental wellness state can feel like (or close). A moment of deep inner peace completely free from stress and anxiety has been the catalyst for a life-changing mental wellness journey for many people.
I have been fortunate to have increasingly frequent peak experiences in recent years. Each one motivates me to dedicate even more time to my mental fitness. The quality of my life has increased to a higher degree than I could have ever imagined when I started. Many of my friends and colleagues have not followed me on this path. No matter how many times I try, I find it impossible to describe these peak experiences to those who have not experienced them before. People need to experience it for themselves. Given the inspiring effect of these peak experiences on my personal journey, I often find myself wondering if technology can enable people to have these experiences on a larger scale.
Before I dive in, I want to emphasize that the technologies I’m about to discuss are not magic enlightenment solutions. A consistent mental fitness routine will be critical for lasting change. Rather, I believe these tools can help people overcome the motivation barrier and inspire a commitment to mental fitness.
1/ Neurostimulation. Many people have peak experience while in deep meditation. My first upside awareness moment came towards the end of my second 10-day Vipassana retreat. Having a peak experience through meditation requires a lot of practice and many drop before reaching their first breakthrough.
Neurostimulation technology has the potential to speed up the time it takes to experience upside awareness through meditation. Zendo promises to make our meditation practice 2.5x more effective by sending direct electrical signals into our brain. The book Spirit Tech explores the early promise of ultrasound stimulation which can trigger a peak experience meditation state equivalent to decades of practice (still in research). Once our mind and body experiences a deep meditative state, it becomes easier to reach that state on our own. I see a future where we use both Neurostimulation and Neurofeedback technology to explore the depths of our mind. Neurostimulation keeps us motivated by parting the clouds and giving us a view of the peak we are climbing towards, while neurofeedback serves as the map to get us there.
2/ Psychedelics are the most well known tools to produce peak experiences by altering our consciousness. With proper intention and integration, psychedelic experiences can have immediate mental wellness benefits.
Today, 95% of the industry is focussed on helping treat mental illness. There are a few emerging brands within psychedelic wellness as well. For example, Earth Resonance offers an affordable psilocybin micro-dosing product and plans to build a deeper end-to-end psychedelic experience. However, until psychedelics are legalized in more markets, I am not bullish on psychedelic wellness business models. Therefore it will be a limited focus area for MindEd Ventures in the short-term. For those interested, Vine Ventures wrote a wonderful overview on the current state of the psychedelic industry.
3/ Transcendental breathwork. I was shocked as I walked out of my first transcendental breathing session. How could something as simple as breath put me into an altered state of consciousness that felt eerily similar to a psychedelic experience? Othership and Brthwrk are among the pioneers scaling solutions to help us harness the power of breath practice to improve our calm, and energy. I have not yet seen a company building scalable transcendental breathwork tools. I am confident they will emerge soon.
Over the next decade we will have a greater diversity of tools for people to experience their first peak experience event. My hope is that this will bring millions (billions?) of people into the mental fitness world.
Investment Theme #4: Democratizing access to mental wellness support
I strongly believe that every single person can benefit from a therapist. Working with a good therapist or coach can be one of the most effective ways to improve mental wellness. Unfortunately, most people cannot afford a good therapist.
With the proliferation of therapist marketplaces, therapy is more accessible than ever. But scaling high quality therapy has proven to be a challenge. There is a substantial therapist shortage as demand is outpacing supply, and it is estimated that up to 50% of people drop out of therapy after their first session as marketplaces struggle with consistent quality controls. Although marketplaces have reduced the cost of therapy considerably, price point still remains the biggest blocker for many who need it most. I don’t believe in-person therapy will scale to populations that need to pay out-of-pocket (e.g., those without insurance or in countries where therapy is not yet covered by insurance or employers).
Tech-enabled models that don’t rely on one-to-one in-person support have the potential to fully democratize access to personalized therapy. Here are a few approaches that I am closely following:
- Bloom and Koa Health are building engaging tools for self-therapy allowing people to do CBT on their own (the most commonly used therapeutic framework).
- Happify is a digital therapeutic (a digital pill) designed to help people overcome their negative thinking patterns. Loop is building a similar type of solution for social anxiety.
- Wisdo and Real helps people feel more connected and supported by pioneering the community-driven therapy model.
- Woebot and Wysa are the early pioneers in AI-based therapists. With GPT-3, many new players like IFSbot and Elomia are jumping in.
- Replika is taking the most unique and futuristic approach by connecting people with AI-soulmates who are part therapists, part friends (in AR)
While I don’t believe technology can fully replace the benefit of having a good therapist (at least not yet), these models can provide effective tools for those with sub-clinical conditions who can’t afford traditional therapy.
This theme is not just about traditional therapy. There are a number of powerful complementary modalities that are too expensive for an average person to access (and not covered by insurance). That is why I invested in Wellset — a digital mental health studio that provides access to world class instructors across 20+ holistic practices including Hypnosis, Ayurveda and traditional Chinese medicine. I look forward to more models that emerge to fill this important gap.
The goal is clear: we need to expand access to mental wellness support for everyone who needs it. There is still a lot of work to do on efficacy and scalability, but the reality of everyone in the world having access to a high quality therapist and wellness coach (in their pocket) may not be a pipe dream after all.
Investment Theme #5: Precision wellness
Mental wellness is not just about training our mind. In her recent book, Dr. Robin Berzen talks about the influence that our physical health has on our mental wellness. She shares many anecdotes and the latest science on how better sleep, nutrition and movement habits can lead to a state-change improvement in our mental health. Netflix psychiatrist Phil Stutz attributes 85% of early therapy gains to lifestyle changes. Building better physical wellness habits have been a big part of my mental wellness journey. Better habits have given me more energy to pour into my professional goals and my mental fitness practices. It is a virtuous cycle.
Precision medicine is seen as the future of healthcare, marking a significant departure from the one-size-fits-all approach to treating illness. By utilizing a patient’s full medical profile, including genetics, biomarkers, lifestyle, and more, doctors are starting to create personalized treatment protocols that have a higher efficacy rate and fewer side effects.
When it comes to wellness tools we are still largely stuck in the one-size fits all paradigm. Many joke that self-care is a full time job. If we try to do everything that the internet says is good for our wellbeing, it is. With the boom in wearables and the cost of bloodwork and biomarker analysis (slowly) going down, we suddenly have access to tons of data about our body. The era of precision wellness is upon us. Here are a few exciting examples of new emerging companies in this broad and budding sector.
- Inside Tracker and Ornament make it easier than ever to test and track our biomarkers.
- Elo Health and Bioniq take it one step further by providing personalized supplements based on our results. Thesis does the same for nootropics (brain supplements).
- January.AI and Levels help us build better eating habits by giving us data on our real-time glucose levels.
- Crescent Health and Sleepscore provide personalized recommendations to improve our sleep based on our sleep data.
- Mindwell Labs monitors our anxiety real time enabling us to measure the efficacy of various anti-anxiety interventions.
We are scratching the surface of what is possible. Employers, payers and providers are starting to pay attention making it a very attractive VC opportunity. Data-driven, personalized support to live healthier lives is the future and I am excited to be part of it — both as a customer and investor.
This concludes the initial investment thesis for MindEd Ventures. A stake in the ground that will surely evolve as the industry continues to rapidly evolve over the coming years. I will try to publish updates for those interested in following along!
Opening the doors for collaboration
My intention with this article was to pique your interest in the investment themes that MindEd will focus on. If I was successful, there are many ways to collaborate:
- If you are building mental fitness tools, please reach out. MindEd Ventures invests in pre-seed and seed stage rounds. You can learn more about the investment process and philosophy here.
- I am looking to build out an advisory group for the fund (formal and informal). If you are interested, please reach out directly on LinkedIn.
- If you are considering a career in venture capital, I am looking for a part-time associate to help with DDs (5–10 hours per week). This could be a great opportunity for those who are passionate to get involved.
- If you want to stay in the loop on what is happening in the industry, I am considering launching a community to share updates and discuss models. If interested, please leave a comment with your email.
- I am still relatively new to this industry. If you disagree with any of my views, please challenge them — I look forward to learning from you.
