Happify Health announced a $73 million Series D round of venture capital for its digital health platform, focusing on mental wellness. This brings its total raised to $118.7 million. Employee mental wellness is one of the hottest global work tech trends in the market. Provider briefings all report robust interest and sales/adoption. The trend was evolving pre-COVID, but the pandemic pushed CEOs and HR leaders to invest more rapidly in providing solutions to help the workforce bring their whole selves to work while dealing with stressors both on the job and off. VC responded quickly.
$340 million was invested across six deals in the wellness category during 2021 Q1 alone. This seems to be a direct response to the increased demand tech providers saw as a result of the COVID-19 pandemic. For perspective, this is on pace to eclipse both calendar years 2019 ($381M) and 2020 ($485M).
VC minted three unicorns in 2021 Q1. Ginger, Modern Health, and BetterUp all had valuations that exceeded $1 billion for their different models addressing mental health and wellness.
Happify considers itself a software-enabled healthcare platform, offering two core solutions for its customers and end-users; Digital Therapeutics and Care Delivery solutions and services across the healthcare ecosystem, including enterprises, health plans, health systems, pharmaceutical manufacturers, and individuals.
Most of the mental wellness work tech providers market directly to employers as an integrated marketplace of coaches or providers, as a benefit through health and wellness insurance providers, or both. Happify’s pharma channel and partners are unique and differentiating.
The mental wellness category of work tech has become increasingly saturated with providers. Leaders in and outside of HR would be well-served to study what model will satisfy their employee population the best. leaning on benefits advisors and experts found via the broker channel.
$2.7 billion was invested globally in work tech during 2021 Q1 alone. Get WorkTech’s free report and analysis here.