Grow Therapy, a provider-focused digital mental health startup, announced the closing of a $88 million Series C financing round.

The round was headed by Sequoia Capital, with participation from PLUS Capital and Growth Equity at Goldman Sachs Alternatives. Athletes and artists like Jrue Holiday, Dak Prescott, Anna Kendrick, Joe Burrow, and Lily Collins also made contributions to the round.

The business also revealed the introduction of a brand-new measurement-based care system designed to enhance patient outcomes and ease the transition of providers to value-based behavioral health services.

ACTUALLY, IT DOES

The platform of Grow Therapy facilitates in-person and telehealth encounters between patients and mental health practitioners.

What the company intends to do with the capital round was not disclosed.

“Our team believes that empowering people to find and engage with effective mental health support – regardless of their background, geography or financial circumstances – is the most pressing need of our time. The two announcements we’ve made today, including the close of our $88 million Series C from Sequoia Capital and Goldman Sachs Alternatives and the launch of our new measurement-informed care system, represent tremendous strides in helping us fulfill that goal,” Grow Therapy CEO Jake Cooper said in a statement.

SUMMARY OF THE MARKET

To offer coverage in-network, the New York-based company has partnered with other insurance companies, such as Aetna, Humana, Cigna, and United Healthcare.

In 2022, Grow secured $75 million in Series B investment. Leading the round were investors TCV and Transformation Capital, with assistance from current investors SVB and SignalFire. The money was utilized by Grow Therapy to hire more staff members and increase the company’s impact on insurance, particularly Medicare and Medicaid.

Quartet Health is another virtual mental health startup. As part of a strategic alliance with Independence Health Group, Quartet Health closed a $60 million fundraising round.

In order to add mental health services to its home care platform, Quartet teamed with Clover Health, a firm that specializes in serving older adults, in 2021 after purchasing the virtual psychiatry startup Innovatel Telepsychiatry.

Alma, a company that provides software and assistance to mental health practitioners, secured $130 million in Series D funding in 2022. Thoma Bravo, an investor, led the investment. Insight Ventures, Optum Ventures, Tusk Venture Partners, and Cigna Ventures also contributed. The company now has $220 million in funding overall thanks to the fundraising round.