Why We Invested in Manatee

This morning, we announced our latest investment in Manatee, a digital platform that integrates pediatric behavioral health therapy into the daily lives of families. Grand Ventures led the Seed round and was joined by The American Family Insurance Institute for Corporate and Social Impact, Telosity, SpringTime Ventures, and other well-known healthcare angels. I couldn’t be more excited to partner with the company. Here are some reasons why:

• A large, rapidly-growing market: The behavioral health space has exploded in size over the past few years. The challenges posed by COVID-19 shed even more light on the national mental health crisis, particularly among America’s youth. One in five children in the U.S. has a diagnosable mental health disorder, and annual expenditures for pediatric mental health therapy exceed $8.6 billion. After speaking with industry experts, it became clear to us that mental health is currently one of the top priorities of major healthcare systems. Providers are yet to solve the challenges of limited access to therapy and disengagement from families, who play a critical role in the treatment process for children.
• An exceptional team: Manatee’s co-founders possess all the skills they need to succeed. From their down-to-earth attitude combined with egoless candor, to their strong conviction and receptiveness to feedback, they truly exemplify the qualities of strong leadership. Because our diligence process was more stringent than usual during the pandemic, we ended up having fairly frequent video calls which connected us on a more personal level. How could it not after we caught a glimpse of so many living rooms, kitchens, and families? Truly, the team demonstrated high capacity to lead a company and strong ability to continue to hire exceptional employees. They left a strong impression not only on investors, but also their customers, which leads me to my next point.
• Early traction: We all know that selling into the healthcare space can be challenging. Partnering with large healthcare systems is often a long process. We were impressed by the progress they’ve made in just a few short months, partnering with many large and well-known healthcare systems such as Children’s Wisconsin and Children’s Hospital Los Angeles. We believe they’re at an inflection point which makes it the perfect time for us to invest.

Finally, although we are mainly betting on the financial success of the company, it feels extra good to invest in a product that creates positive social impact. Adverse childhood experiences are correlated with high risk for longitudinal physical and behavioral health issues. Helping children who suffer from mental health issues today is a way of ensuring they can achieve a healthier, more successful future.

I’m sure we have a ton of challenges ahead of us — every startup does. Grand Ventures couldn’t be more excited to partner with Manatee as they embark on their next chapter!