Led by Founders Fund, Funding Round Brings Total Investment to Over $172 Million To Support Accelerated Growth & Rising Demand for Mental Health Services
Modern Health, the mental health and wellness platform supporting 220+ enterprises globally, announced that less than four months after closing a $51 million Series C raise, the company has secured an additional $74 million in its Series D investment round led by Founders Fund. Lachy Groom also invested in the round. This latest investment brings the company’s total funding to over $170 million in less than two years and raises its valuation to $1.17 billion, making Modern Health the fastest entirely women-founded company in the U.S. to reach unicorn status.
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Modern Health saw continued growth in demand for its mental health platform and has doubled its revenue since the company’s recent Series C funding round, led by Battery Ventures in October. The investment from Founders Fund will help the company to continue its impressive upward momentum, supporting additional enterprises and offering a variety of accessible, innovative, and customized mental health management options to workforces worldwide. In the last year alone, the company has tripled its employee headcount and doubled its customer base, now serving 220+ enterprise clients globally (including Pixar, SoFi, Okta, Carta, Electronic Arts, Rakuten, Clif Bar, Zendesk, and Udemy). Modern Health launched 25 new enterprise customers in January 2021 alone, and touts a NPS of 71 among Members and 74 among Providers, and a 4.9 out of 5 stars provider session rating.
“If there is one thing we’ve learned from this past year, it’s that prioritizing employee mental health is critical for all companies – no matter the size. We should not have to wait until there is a global pandemic to take action,” said Alyson Watson, CEO and founder of Modern Health. “Business leaders have an imperative to prioritize the wellbeing of their workforces, because it directly impacts company productivity and performance – and because we care about our employees at work and outside of it.”
The need for direct access to mental health support at work has been amplified by a wave of new stressors created by the global COVID-19 pandemic. Modern Health’s comprehensive, science-backed platform allows employers to support the dynamic needs of their entire workforce. Leveraging traditional mental health assessments, therapists, coaches, and digital content, Modern Health’s solution creates a customized plan for each employee to proactively manage their mental health needs. Modern Health’s approach has proven successful for individuals and companies alike – more than half of registered employees on Modern Health’s platform are engaging with care, and a majority complete two or more therapy sessions. Modern Health’s platform is used by 6x more eligible employees than a typical EAP, and nearly half of Modern Health users who start coaching sessions with depressive-related symptoms experience clinical recovery in their well-being after four sessions.
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“It’s clear that now, more than ever, managing employee mental health should be high priority for today’s leading companies,” said Brian Singerman, Partner at Founders Fund. “Modern Health has created a new standard for enterprise mental health management, and is pushing the industry forward with its accessible, comprehensive platform. We believe this company is destined to lead its category into the future, creating more productive, balanced workplaces around the world.”
“I’m thrilled with our team’s success to date and even more proud of the way we’ve achieved it,” said Watson. “We’re excited to be recently recognized by Fortune as one of the Best Workplaces in the Bay Area, and I am humbled to work alongside such an amazing team that pushes us to raise the bar on building an inclusive and diverse workforce. I’m especially proud of the amazing women leaders, working parents, and BIPOC employees at Modern Health who have driven much of the company’s success while facing their own struggles during a particularly challenging year.”
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