Modern Health Secures $9 Million Series A Funding to Develop Mental Health Care Platform

VCBeat (WeChat Official Account: vcbeat) learned from foreign media that on May 23, U.S. local time, the biotechnology company Modern Health completed a $9 million Series A financing round. The funds from this round will be used to develop a mental health prevention and treatment platform, filling a gap in the healthcare industry.

It is reported that this round of financing was led by Kleiner Perkins, with participation from Y Combinator and Afore Capital. In addition, Modern Health has expanded its board of directors, with Mamoon Hamid, a partner at Kleiner Perkins, joining the board.

Modern Health, founded in 2017 and headquartered in California, USA, is a biotechnology company dedicated to developing mental health service platforms.

Modern Health primarily serves corporate employees, a demographic under significant life stress and at high risk for mental health disorders. The company’s services mainly encompass three areas: health monitoring, regular health assessments, and disease treatment.

Modern Health’s service platform offers the following advantages: (1) Addressing pressing industry challenges. Mental disorders such as depression have become a global concern, and the company provides comprehensive prevention and treatment services for mental health conditions to corporate employees, thereby alleviating urgent needs within the healthcare sector. (2) Abundant therapist resources. Unlike offline physical therapy, Modern Health enables patients to communicate directly with clinicians online, allowing them to schedule appointments with qualified professionals at any time, thus mitigating the shortage of medical resources. (3) Reducing patients’ medical expenses. Currently, most psychiatric care centers are not integrated into insurance systems, requiring patients to bear the full cost of treatment. Modern Health’s online consultation platform helps lower medical costs associated with repeated visits.

Mamoon Hamid, a partner at Kleiner Perkins, stated, “Currently, the United States requires an annual investment of at least $200 billion to treat mental illness among Americans, with mental health disorders having become a key focus for the industry. Although the mental healthcare market holds immense potential, current attention from the medical sector remains relatively low. We look forward to collaborating with Modern Health to enter the mental wellness market and create new industrial value for both parties.”

Kleiner Perkins, founded in 1972 and headquartered in California, USA, is a venture capital firm dedicated to investing in startups across debt, early-stage, and late-stage development phases. To date, it has completed 1,094 investments. Kleiner Perkins boasts an experienced investment team that, in addition to providing financial support, assists entrepreneurs in managing their companies, enhancing operational performance, and expanding market share.

Y Combinator, founded in 2005 and headquartered in California, USA, is a venture capital firm dedicated to investing in the early-stage development of startups, having completed 2,355 investments to date.

Afore Capital, founded in 2016 and headquartered in California, USA, is a micro venture capital firm. Its investment team boasts 16 years of product investment experience and 7 years of institutional investment experience, having completed 32 investments to date.

(Compiled by Liu Yujing)