Lantern, a UPMC-Backed Mental Health Startup, Secures $17 Million in Funding and Files IPO Prospectus

Mental health startup Lantern recently announced the completion of a $17 million financing round. The company provides efficient and affordable mental health services to users online. This round was led by the University of Pittsburgh Medical Center (UPMC), with other investors including Mayfield Fund, SoftTech Venture Capital, and Stanford University.

Reliable Method, Good Efficacy

Founded in San Francisco, USA, in 2012, the company aims to translate clinical expertise into simple and easy-to-understand program experiences, helping people achieve optimal mental well-being. Lantern’s mental health services are based on cognitive behavioral therapy (CBT) that has been validated for reliability, and are supported by Stanford University, Pennsylvania State University, and Washington University in St. Louis. CBT examines the interplay between thoughts, emotions, and behaviors; it is problem-focused and action-oriented, aiming to resolve psychological issues through user-led practice, development of practical strategies, and real-time mood tracking. Evidence has shown that this online mental health program delivers effective outcomes, with online coaches providing highly competent support.

Service Process

First, users are required to complete an assessment. The method widely adopted in current psychological assessments involves patients providing self-reports on their thoughts, behaviors, and other aspects. Research has demonstrated that this approach can accurately and sensitively evaluate physical conditions, clinical symptoms, and psychological emotions. Lantern’s assessment is also based on this methodology. By identifying and adjusting negative emotions and enhancing self-awareness, users can improve their ability to cope with various challenges. Following the assessment, a professional coach will be assigned to the user based on the results, available to answer questions and provide recommendations at any time.

Lantern–UPMC Collaboration Details

Behavioral health issues are among the most challenging problems facing the nation, adversely affecting the physical health of 18% of adults. It is reported that in primary care settings, medical expenditures for depression and anxiety rank among the top five. Among patients with chronic diseases, depression and anxiety are more prevalent and incur higher costs. Given the shortage of mental health professionals, two-thirds of primary care physicians report difficulties in providing behavioral health services to their patients.

The University of Pittsburgh Medical Center (UPMC) is a leading non-profit healthcare system in the United States and one of the most renowned academic medical centers in the country. The center seamlessly integrates clinical practice with research, maintaining an international leadership position in fields such as organ transplantation, neurosurgery, stem cell science and tissue engineering, and nanoscience.

UMPC clinicians will collaborate with Lantern to expand the application of this mental health service program to other behavioral health issues, with the aim of further addressing more complex health problems. Eva Szigethy, M.D., Associate Professor of Psychiatry and Pediatrics at the University of Pittsburgh School of Medicine, will work closely with the Lantern team. She stated, “Enhancing medical care for behavioral health and committing to preventive measures are the only viable approaches to delivering cost-effective mental health care.”

“UPMC is one of the largest integrated healthcare delivery systems in the United States, making it an ideal partner,” said Alejandro Foung, Founder and CEO of Lantern. “With more than 20 hospitals and over 3,500 physicians, UPMC provides healthcare coverage to 2.8 million people and plays a vital role in disease prevention, which is crucial for continuous care. Unlike the fee-for-service model that currently dominates behavioral health, UPMC focuses on disease prevention—a approach that holds great appeal for Lantern. We are both committed to preventing diseases and nipping them in the bud. Therefore, Lantern and UPMC make the perfect partners.”

By Chen Kun
Editor: Zhang Nan