Mental Health Tech Startup Grow Therapy Secures $88M, Expands Measurement-Based Care Technology

Grow Therapy, a mental health technology startup, recently secured $88 million in new funding to expand its reach and establish additional partnerships with payers.Founded in October 2020, Grow Therapy offers comprehensive solutions designed to assist therapists in establishing and managing their own practices. Additionally, the company provides patients with access to mental health care services. With this latest funding round, Grow Therapy aims to further enhance its offerings and broaden its network of partnerships within the healthcare industry.

Sequoia Capital spearheaded the series C funding round for Grow Therapy, with support from Goldman Sachs Alternatives and PLUS Capital. Notably, artists and athletes from their collective, including Anna Kendrick, Lily Collins, Dak Prescott, Joe Burrow, Jrue Holiday, and Lauren Holiday, also participated in the series C funding.Over the span of three years, Grow Therapy has amassed a total of $178 million in funding. This includes a $15 million series A round in September 2021, followed by $75 million in series B funding in September 2022. This significant investment underscores the growing recognition and demand for mental health technology solutions provided by Grow Therapy.

Grow Therapy has unveiled an advanced, measurement-informed care infrastructure aimed at benefiting both therapists and patients.CEO Jake Cooper emphasized the company's commitment to empowering individuals to access effective mental health support, irrespective of their background, location, or financial situation. Cooper highlighted the importance of collaborating with partners and stakeholders to create an environment where individuals can readily access trustworthy and affordable care, while therapists can fulfill their roles in their communities and cultivate sustainable and fulfilling careers.

Grow Therapy operates as a comprehensive three-sided platform, offering integrated vertical software and services tailored to patients, providers, and payers. These services encompass seamless patient-provider matching, insurance billing, electronic health records, telehealth software, and care navigation. Notably, the company facilitates mental health therapists in establishing private practices that are covered by insurance.As part of its latest developments, Grow Therapy has introduced an advanced technology stack. This includes the company's proprietary telehealth infrastructure, which supports in-session assistance, as well as a system designed to facilitate measurement-informed care delivery.

Furthermore, significant enhancements have been made to critical features and capabilities available to providers, enabling them to deliver care both in-person and via telehealth platforms.Grow Therapy's telehealth infrastructure seamlessly integrates with its proprietary Electronic Health Record (EHR) system, allowing providers to easily reference and modify patient treatment plans, goals, and clinical notes. This integration streamlines the workflow for providers, enhancing their ability to deliver effective care.

Additionally, Grow Therapy's platform collects and analyzes clinical assessments, providing visualizations and prompts for measurement-informed care within the treatment planning process. This feature enables providers to make informed decisions and adjustments based on real-time data and patient progress.Moreover, the company has implemented significant improvements to its patient and provider matching algorithm. This algorithm considers various factors such as availability, specialty, diversity, identity, and care quality to facilitate optimal patient-provider pairings. By enhancing this algorithm, Grow Therapy aims to ensure that patients are connected with providers who best meet their needs and preferences.

Over the past three years, Grow Therapy has facilitated over 3 million patient visits, with an impressive 94% conducted in-network. The company's extensive network comprises over 12,000 providers spanning all specialties, including individual, couples, family, child and adolescent therapy, as well as prescribers. These providers deliver care to patients in 24 states, with the platform supporting both in-person and telehealth appointments.Notably, Grow Therapy has achieved remarkable outcomes, boasting a quick time-to-care of four days, an impressive satisfaction rating with an 85 Net Promoter Score, and significant symptom reduction of approximately 50% for clients experiencing moderate to severe symptoms.

In terms of payer partnerships, Grow Therapy collaborates with more than 75 insurers across all business lines, including commercial, Medicaid, and Medicare. Major payers such as Aetna, Humana, UnitedHealth, Anthem, Cigna, and several Blues plans are among the company's partners.Recent guidelines from the U.S. Preventive Services Task Force recommend routine screening for anxiety among adults aged 19 to 64, even in the absence of apparent symptoms. This recommendation complements the agency's guidance from 2022, which suggests regular screening for children aged 8 to 18. Such guidelines underscore the growing recognition of the importance of mental health screening and care, aligning with Grow Therapy's mission to provide accessible and effective mental health support to individuals of all ages.

The analysis of federal data released by KFF in March revealed concerning trends, with half of all 18- through 24-year-olds reporting symptoms of anxiety and depression in 2023, compared to a third of adults overall. In response to this growing need for mental health services, Grow Therapy is dedicated to ensuring that individuals can access these vital services while also ensuring that insurance coverage is available for such visits.

Sequoia Capital Partner Pat Grady emphasized the importance of addressing the challenges in accessing mental health care, noting a significant shift in Americans' approach to mental health over recent years. Grady highlighted Grow Therapy's integrated platform and measurement-informed care approach as key elements empowering therapists to establish and expand their practices, while simultaneously enabling patients to promptly access the care they require. Through its innovative solutions, Grow Therapy aims to bridge the gap in mental health care accessibility and affordability, ultimately improving the overall well-being of individuals across the nation.