Digital therapeutics platform Happify Health raises $73M
Digital therapeutics startup Happify Health raised $73 million in funding. The New York-based company builds app-based tools based on cognitive behavioral therapy and mindfulness.
Deerfield Management Company led the series D round, with participation from Omega Capital Partners, ION Crossover Partners and existing investors. Happify plans to use the funds to build out more specialized solutions for health plan and pharmaceutical companies.
“Our ability to add a well-rounded group of seasoned investors, led by Deerfield, will further prepare us to execute against the tremendous opportunity ahead of us. Today, our platform covers more than 20 million lives with more than 5 million individuals having received care through our platform,” Happify Health Co-Founder and CEO Tomer Ben-Kiki said in a news release.
Happify Health, which was founded in 2012, is a self-care platform with several topic-based tracks. For example, it has one-month programs for relationships, work, finances, and other situations that can exacerbate mental health challenges. It also is building a chatbot that uses natural language processing to ask users questions and build mindfulness skills.
Currently, Happify Health has a paid consumer-facing app, but it is also building out more partnerships with health plans and pharmaceutical companies. It currently is working with four major national health plans and five pharmaceutical companies, including Sanofi and Almirall. For example, it struck a partnership with Sanofi in 2019 to develop a mental health digital therapeutic for people with multiple sclerosis.
For pharmaceutical companies, Happify Health says its internal platform can bring in patients with medical conditions that frequently co-occur with mental health conditions, and connect them to relevant digital therapeutics or clinical trials.
For health plans, the company launched a screening and referral solution last year, which is intended to keep patients engaged in their care and improve outcomes. After going through a screening, patients can decide whether to use Happify’s app, its AI coach, or talk to a therapist through Talkspace—a text-based therapy startup that is also partnering with Happify Health.