Ginger Secures $35 Million Series C Funding to Expand Its On-Demand Behavioral Health Platform

On September 5, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Ginger, a leader in the behavioral health sector, announced the completion of a $35 million Series C financing round. The round was led by WP Global Partners, with participation from City Light Capital, Nimble Ventures, and LinkedIn CEO Jeff Weiner, as well as existing investors Khosla Ventures, Kaiser Permanente Ventures, and Kapor Capital.

Following the completion of this funding round, Ginger will further develop its online behavioral health service platform and expand its business globally.

It is reported that nearly one in five Americans suffers from mental health issues, yet half of the U.S. states and counties lack sufficient mental health service providers to meet the demand. Ginger’s on-demand model integrates online behavioral health coaching and video therapy into a single virtual platform, enabling patients to receive treatment rapidly. Ginger’s artificial intelligence technology empowers healthcare professionals to deliver appropriate care to patients precisely when needed.

Ginger, founded in 2011 and headquartered in San Francisco, USA, is a behavioral health company. The company provides on-demand services to individuals requiring emotional and mental health support. As a virtual behavioral healthcare system, Ginger leverages proprietary artificial intelligence technology to deliver high-quality emotional and mental health support to its patients within seconds. The Ginger app, available on Android and iOS, offers members real-time chat access 24 hours a day, 365 days a year. For members needing additional care, video therapy sessions can be easily and quickly scheduled through the app.

The World Economic Forum has recognized Ginger’s AI technology as a Technology Pioneer. The company was named one of the ten most innovative companies in healthcare by Fast Company. Surveys indicate that over 70% of Ginger users experienced a significant reduction in depressive symptoms within 12 weeks.

In the United States, individuals seeking mental health care wait an average of 25 days for an appointment with a psychiatrist. A recent survey found that two-thirds of Americans would prefer to instantly text a certified mental health professional if they were struggling with stress or life challenges, rather than waiting three weeks to see a therapist. On the Ginger platform, members can chat with mental health professionals within seconds.

According to Ginger’s 2019 Workforce Behavioral Health Report, nearly 50% of U.S. workers missed an average of four or more workdays in the past 12 months due to stress, resulting in productivity losses of at least $30 billion. Currently, Ginger-sponsored benefit programs provide behavioral health services free of charge to over 200,000 employees worldwide, a figure expected to more than double by the end of 2019.

Ginger’s clientele ranges from small private companies to Global 100 corporations, exerting significant influence across key industry verticals such as professional services, technology, media, and entertainment. Ginger has also expanded its international operations and currently provides mental health coaching services in 19 countries and regions worldwide, including Canada, the United Kingdom, Japan, Australia, and India.

Ginger CEO Russell Glass stated, “As the global mental health crisis intensifies and challenges mount, companies worldwide are seeking solutions to address provider shortages. Ginger has established the world’s first virtual behavioral health system through its on-demand care model. This new round of financing enhances our capacity to deliver healthcare services, enabling Ginger to meet the needs of millions of patients anytime, anywhere.”

Donald Phillips, Chairman and CEO of WP Global Partners, stated, “We have extensive experience in healthcare investments and believe that technology is key to addressing the global mental health crisis. As we expand our portfolio, we are clear that no other company in the world can deliver emotional and mental health coaching as quickly and effectively as Ginger.”

WP Global Partners, founded in 2005 and headquartered in Chicago, USA, is a venture capital firm focused on the healthcare sector.

City Light Capital, founded in 2004 and headquartered in New York, USA, is a venture capital firm that invests in high-impact early-stage companies.

Nimble Ventures, founded in 2012 and headquartered in Toronto, Canada, specializes in corporate management consulting and venture capital.

Khosla Ventures, established in 2004, is a venture capital firm. In addition to investing in traditional venture sectors such as the internet, computing, mobile, and silicon technologies, the firm also focuses on clean technology.

Kaiser Permanente Ventures was established in 1945 and is headquartered in California, USA, primarily investing in healthcare companies.

Kapor Capital, founded in 1999, is a fund headquartered in Oakland, California, USA, primarily investing in seed and early-stage startups.

(Compiled by Hu Yifan)