Digital mental health companies saw a slight increase in deals in the third quarter of 2022 after a disappointing first half of 2022.
In total, there were 72 mental health technology deals in the third quarter, worth $700 million, according to new data from . CB InsightThis is up from a total of 70 deals valued at $600 million in the second quarter.
The subtle increase in funding comes as investment in digital health as a whole continues to plummet. Q3 health tech funding fell 36% quarter-on-quarter, according to CB Insights. This means that investment in digital health was the lowest since the first quarter of 2019.
Transactions in the digital mental health sector slowed significantly in the first half of 2022 compared to 2021.
In fact, 2022 deals are expected to surpass digital behavioral deals in 2020 and 2019.
“Given the economic headwinds that exist across the industry and the setback in trade across the industry, we believe deal flow remains quite healthy behaviorally,” said Larry Cocotte, Principal. increase. At KPMG, in August, he told Behavioral Health Business: data From KPMG LLP, Epstein Becker & Green, and FocalPoint Partners.
The average digital mental health transaction value has fallen from $19 million in 2021 to $11 million today.
AlmaA health tech platform designed to help behavioral health providers work with insurers to fund behavioral health in a $130 million Series D funding round in the third quarter led the
Alma Health was the only company with nine-figure digital mental health deals in Q3, although it did have some eight-figure deals. for example, glow therapy, ripple and Oui Therapeutics all raised over $20 million.
Despite a slight increase in funding, there are still no new digital health behavioral health unicorns this year.
SPAC and IPO exits remain rare, even in the digital behavioral health space, with one each in Q3.
While a large number of digital mental health deals (36) took place in the US, the market is also heating up in Asia. Digital mental health deals in the US in Q3 were worth $500 million. Meanwhile, in Asia, there were 13 digital behavioral health deals worth $200 million.
Looking ahead, Q4 has already seen a number of new digital health deals announced.
for example, mindful careA startup focused on providing virtual emergency mental health, last week raised $7 million in Series B funding. The company said the funding will be used to expand Mindful Care’s current offerings into new markets, and will also launch “innovative individual therapy and addiction treatment programs.”
moreover, neuroflowProvider of Cooperative Behavioral Health Services raised $25 million in funding earlier this month.
