How to navigate mental health startups as a therapist
If it feels like a bunch of mental health tech companies have popped up over the last few years, it’s because they have.
Image via What If Ventures
In 2019, $1 billion was invested in mental health startups.
In 2020, that number increased to $2.7 billion.
In 2021, it jumped again to $4.8 billion.
That’s nearly 5x growth in two years. What happened?
You probably guessed it: the COVID-19 pandemic.
Why? There were a combination of tailwind economic factors.
Decline of mental health: Nearly 1/3 of U.S. adults had symptoms of depression or anxiety in December 2021, 3x the amount in 2019.
Increase in demand for therapy: Mental health became more normalized and therapy became less stigmatized.
New adoption of technology: Therapists who were traditionally low tech were suddenly forced to do therapy online.
The combination of these factors made the mental health space appealing to venture capital (VC) investors, leading to an influx of well-funded mental health companies.
So how do you know which of these startups are legit? As someone who works in this space, and who has consulted with many of these companies, here are three things I would ask.
How do they handle client data?
Data privacy is a huge topic in tech, and it’s especially important in mental health tech. Is their software HIPAA-compliant? What client information are they collecting? What are they doing with it? Are they selling it?
Do they have a clinician on their founding or leadership team?
Mental health startups need to have a mental health professional in the room, especially when they’re making clinical decisions. If they don’t, consider advising them.
How much do they pay therapists?
Mental health startups are notorious for underpaying therapists and having questionable compensation structures. Ask about pay upfront and make sure it aligns with your worth.
For more on this topic, listen to my recent interview with Dr. Melvin Varghese on his podcast, Selling the Couch.