Investors Spot Opportunity Amidst Mental-Health Crisis

By Matthew Milner, on Wednesday, February 24, 2021

Here are a few examples of “the new normal” most of us can relate to:

  • Wearing a mask.
  • Washing our hands obsessively.
  • And perhaps worst of all, feeling stressed and anxious.

In fact, according to the U.S. Census Bureau, 42% of people surveyed in December 2020 reported anxiety or depression. That’s up from just 11% the prior year.

But a new solution is now at hand!

So today, I’ll explain how this solution is improving peoples’ mental health…

And then I’ll reveal how it’s leading early investors to staggering profits.

Mental-Health Issues Skyrocket

To get a sense of the current mental-health crisis, consider:

  • In a survey by the Kaiser Family Foundation, 45% of Americans said the Covid-19 crisis was harming their mental health.
  • In a poll from Pew Research Center, 73% of Americans reported feeling anxious at least a few days per week since the onset of the pandemic.
  • The use of crisis hotlines has skyrocketed. For example, during the first few months of the outbreak in early 2020, calls to Los Angeles suicide and mental-health hotlines increased 8,000%.

Given the pandemic, traditional methods of coping — in-person counseling, support groups, having a drink with friends — are off-limits.

But now, a new means of getting help is taking hold…

Apps to the Rescue

You see, people are using mental-health platforms that provide treatment via mobile phones.

According to market-intelligence firm Sensor Tower, the world’s 10-largest mental-wellness apps saw a combined 10 million downloads in the month of April 2020.  So it’s no surprise that, in May 2020, CNBC reported that mental-health apps were drawing a “wave of new users.”

According to Zion Market Research, the market for digital mental health solutions was worth $1.4 billion in 2017. But by 2026, this market is projected to triple to $4.6 billion.

And now, all this activity is attracting the “smart” money…

As Market Booms, Professional Investors Jump In — and Valuations Soar

Even before Covid-19, venture capitalists were starting to invest in mental-health startups. In 2019, they invested about $600 million.

Why? Because they saw enormous profit potential in this sector.

But in 2020, such funding tripled, to $1.8 billion.

Here are a few of the startups that attracted capital:

  • Amwell, which provides behavioral health and telehealth services, raised $194 million in May 2020, and then went public (AMWL). It’s currently worth $6 billion.
  • Lyra Health, a behavioral health startup, recently raised $187 million from investors including Fidelity. Its valuation doubled to $2.3 billion in just months.
  • And meanwhile, Headspace, an app for meditation and sleep training, is worth $320 million; Talkspace, a mobile platform connecting users to therapists, is valued at $1.4 billion; and Calm, an app to relieve stress, is valued at $2 billion.

Ready to Invest in this Sector?

Several startups in this sector are currently raising capital from investors like you.

One such startup is called MentalHappy.

MentalHappy is a social network. It helps people improve their mental health through peer support. Essentially, it provides a place where people can build a “positive mindset and alleviate their inner turmoil.” It also offers digital toolkits with guided content so users can learn strategies to find relief on their own.

The company is young, but it’s backed by YCombinator, the start-up accelerator whose alumni include billion-dollar homeruns like Airbnb and Dropbox.

Keep in mind: I’m not recommending that you go and blindly invest in this startup…

It’s an early-stage venture, so you need to do substantial research before making an investment decision.

But if you’re interested in learning more, click here »

Keep an Eye on Your Inbox

Meanwhile, if you’re a member of our premium research service, Private Market Profits, keep an eye on your email inbox…

We’ll be delivering your new issue this week…

And it’s about a mental-health startup that we do recommend you invest in!

Happy Investing

Please note: Crowdability has no relationship with any of the startups we write about. We’re an independent provider of education and research on startups and alternative investments.

Best Regards,
Matthew Milner
Matthew Milner


If you enjoyed this article, subscribe to updates:

Sign-up today and you'll receive our daily insights on early-stage investing, as well as our FREE "Equity Crowdfunding Action Kit" – where you'll learn:

  • The Ins & Outs of Equity Crowdfunding
  • A step-by-step path to get started
  • Tips from dozens of Venture Capitalists
subscribe to updates

Thank you for subscribing!

Tags: Startups

Share This:
comments powered by Disqus