Modern Health raises $31M to accelerate reach of mental health benefits
We’re thrilled to announce that Modern Health has raised $31M in Series B funding, led by Founders Fund and John Doerr, with continued investments from Kleiner Perkins and Afore Capital. This is one of many exciting milestones in a tremendous year of growth, and will accelerate the next phase in our journey to empower companies to support their employees’ mental well-being.
Employers are seeking new ways to provide mental health benefits.
In the last year, employers have been increasingly prioritizing mental health and proactively seeking preventive and personalized mental well-being benefits for their employees. Rising claims costs, ineffective and unused solutions, and the growing demand from their employees have led companies to search for better offerings beyond what is offered by major medical health plans or legacy EAPs. Modern Health offers a different approach, enabling companies to make mental healthcare more accessible to their entire workforce.
“Getting mental health support has too often been stigmatized, especially in the corporate world,” notes investor John Doerr. “Modern Health has a unique approach that effectively de-stigmatizes care by making it available to everyone. Now companies can provide all employees, regardless of their spectrum of need, a solution that works for them, whether they need clinical support or prefer self-guided programs that promote their mental wellbeing.”
“Until now, companies have found it difficult to offer mental health benefits that feel relevant to all of their employees. Because mental well-being is not a one-size-fits-all solution, we believe it’s important to understand each individual’s needs and meet them wherever they are in their journey,” says Modern Health Founder and CEO Alyson Friedensohn.
Modern Health offers a unique platform, built for everyone.
Modern Health’s experience starts by triaging people to the level of support that’s right for them. By offering a comprehensive set of resources on a single platform, we make accessing mental health resources simpler for both companies and their employees. Whether that’s depression/anxiety, financial stress, relationship difficulties, or developing as a new manager, our platform provides a range of resources from guided meditations to a network of certified coaches and licensed therapists.
“At Modern Health, we think about mental health on a spectrum from green to red and design our products to be accessible to everyone,” describes Dr. Myra Altman, psychologist and VP of Clinical Care at Modern Health. “That’s why we use a stepped-care model, rooted in the principles of value-based care, to ensure that every person gets the type of support they need. This creates one `front door` that provides employees with access to a comprehensive spectrum of digital, virtual, and in-person resources.”
We’ve seen tremendous momentum and support.
The match between Modern Health’s offerings and employers’ needs has led to a number of significant markers of success in the past year, including:
- Over 10x growth in revenue and user base, while extending our reach of covered lives to over 60 countries
- An industry-leading 30% user engagement rate
- A >250% net retention rate, representing renewed and growing commitments from our customers
We attribute these milestones to the many amazing providers, partners, and employers we work with, including Pixar, Gusto, and Lambda School, who are joining us on this journey to change the way society approaches mental healthcare.
And this is only the beginning. “This capital will help us continue to build world-class products for our users and providers, and will allow us to accelerate our ambitious product roadmap in service of delivering the right care at the right time for our growing customer base.” states Chief Product Officer Jinen Kamdar.
We’re diving into 2020 with remarkable momentum and excited to expand our services, grow our team of experts and partners, and change how the world thinks about and receives mental health care.