Ginger, a company of on-demand psychological health care services, has actually raised $50 million in a new round of financing. The new capital comes as interest and investment in mental health and health has emerged as the next big location of interest for financiers in brand-new innovation and health care services business. Psychological health startups saw record deal volumes in the 2nd quarter of 2020 on the heels of rising demand brought on by the COVID-19 epidemic, according to the information analysis company CB Insights. More than 55 business raised rounds of financing over the quarter, although deal amounts decreased 15%, to $491 million. That’s still nearly half a billion dollars invested into psychological health in one quarter alone.
What started in 2011 as a research-based business drew out of work from the Massachusetts Institute of Technology has become one of the largest service providers of mental health services mostly through employer-operated medical insurance plans.
Through Ginger’s services, clients have access to a care planner that is the first point of entry into the business’s psychological health insurance. That individual is a trained behavioral health coach– typically somebody with a master’s degree in psychology with a behavioral health coaching certificate from schools like Duke, UCLA, Michigan or Columbia and 200 hours of training provided by Ginger itself.
These health coaches offer most of care that Ginger’s clients receive. For more serious conditions, Ginger will generate professionals to coordinate care or provide access to medications to reduce the condition, according to the company’s ceo, Russell Glass.
Ginger began offering its on-demand care services in 2016 and counts tens of thousands of active users on the platform. The company charges companies a charge for access to its services on a per-employee, per-month basis and supplies access to mental health services to hundreds of thousands of workers through business benefit plans, Glass stated.
More than 200 companies, consisting of Delta Air Lines, Sanofi, Chegg, Domino’s, SurveyMonkey and Sephora, pay Ginger to cost-efficiently supply employees with premium psychological healthcare. Ginger members can access virtual treatment and psychiatry sessions as an in-network benefit through the business’s relationships with leading national and regional health plans, consisting of Optum Behavioral Health, Anthem California and Aetna Resources for Living, according to a declaration.
“Our entire objective here is to break the supply/demand imbalance and offer far more care,” said Glass in an interview. “Ultimately we desire Ginger to be offered to assist anyone who has a requirement. Being available to any person, anywhere, is an important part of the strategy. That suggests direct-to-consumer will be an instructions we head in.”
For now, the business will use the money to build out its partner community with business like Cigna, an investor in the business’s most current $50 million round. Ginger will also want to getting government payers to reach more people. Eventually direct-to-consumer might end up being a bigger piece of the business as the company drives down costs of care.
It’s also investing in automation and natural language processing to automate care pathways and individualizing patient care utilizing machine learning.
The business’s $50 million Series D round was co-led by Advance Endeavor Partners and Bessemer Endeavor Partners, with additional involvement from Cigna Ventures and existing investors such as Jeff Weiner, executive chairman of LinkedIn, and Kaiser Permanente Ventures. To date, Ginger has actually raised approximately $120 million.
Even as Ginger is working through the existing network of employer advantage plans and standalone insurance suppliers to provide its mental health services, other startups are raising cash to use employer-provided mental health and health plans. SonderMind is working to make it easier for independent psychological health experts to costs insurers, AbleTo helps companies screen for undiagnosed mental health conditions and SilverLight Health partners with organizations to digitally monitor and handle mental health care.
Other start-ups are going direct-to-consumer with a flood of offerings around psychological health. Well-financed, billion-dollar-valued companies like Ro and Hims are using psychological health and health plans to clients, while Headspace has both a consumer-facing and company benefit offering. And upstart companies like Real are concentrating on providing care specifically for women.
With its financing round, Ginger is adding David ibnAle, a founding partner at Advance Endeavor Partners (AVP), which is the investment firm behind S.I. Newhouse’s family-owned media and technology holding business, Advance; and the digital health investment master Steve Kraus from Bessemer Venture Partners.
“AVP purchases business that are using technology to tackle large-scale, international obstacles and transform traditional services and business models,” stated David ibnAle, founding partner of Advance Venture Partners. “Ginger is doing simply that. We are delighted to partner with an exceptional team to help make high-quality, on-demand mental healthcare a truth for millions of more people around the globe.”
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.