If 2024 wasn’t already the Year of Mental Healthcare, Spring Health’s $100 million Series E just cemented it.
The funding vaulted Spring’s valuation to $3.3B and made April Koh the youngest woman to helm a multibillion-dollar company in the process. Not bad for 31 years old!
Spring provides employers and health plans with access to a stable of over 10k contract therapists that can help improve outcomes while reigning in treatment costs.
- At the core of Spring’s platform is Precision Mental Healthcare, which uses AI to analyze patient data (symptoms, socio-demographic, “key factors”) and quickly match individuals to appropriate care.
- The value proposition seems to be resonating. Spring covers 10M lives through 450 directly contracted employers, strategic payor relationships, and channel partners.
The funding follows the recent expansion of Spring’s Global offering (soon to be available in 30 languages), the launch of Community Care (an SDOH initiative), and a big push for SpringWorks (a workplace culture program).
- Spring also touted that it’s the only platform of its kind to receive external validation for delivering employers a net positive ROI.
- That’s apparently been a key differentiator from other behavioral health heavy-hitters vying for the same employers. Headspace, Lyra, and Evernorth all jump to mind.
An investment memo from Series E participant Kinnevik helped color in the roadmap Spring outlined in its announcement.
- Outside of fueling Spring’s expansion into higher acuity needs and pediatrics, the funding was intended to strengthen up its balance sheet ahead of an impending IPO.
- The memo also revealed that Spring is in a good spot to be eyeing a public debut after growing run-rate revenue by 15x since 2021 and setting itself up to hit positive margins sometime next year.
The Takeaway
Mental health is one of the defining problems of the decade, and Spring Health is at the forefront of addressing it. Scaling globally without sacrificing care quality is a delicate balance, but Spring believes that it’s “on track to build one of the world’s most valuable companies.”
