Grow Therapy, a mental health platform, raised $150 million in Series D funding to strengthen its support for employers and health systems, the company announced on Tuesday.
New York City-based Grow Therapy helps independent therapists set up their own in-person and virtual private practices and supports them with administrative tasks like billing and insurance claims. It then helps patients book appointments with therapists who specialize in their needs and are in their network. The company is paid by insurance companies when a Grow Therapy provider visits with an in-network patient. It operates in a similar space as Headway and Alma, which also work with independent therapists and connect patients to mental health services.
The company’s Series D funding was led by TCV and Growth Equity at Goldman Sachs Alternatives, with participation from BCI, Menlo Ventures, Sequoia, SignalFire and Transformation Capital. This brings Grow Therapy’s total funding to $328 million.
“We’re thrilled to back Grow on its mission to deliver breakthrough products and care for mental health. Their technology is grounded in a deep understanding of what people, providers, and business partners need for superior outcomes,” said Matt Murphy, partner at Menlo Ventures, in a statement. “Grow has consistently exceeded lofty expectations through world-class execution at scale, and we strongly believe they will define and lead the category for years to come.”
The financing will be used in three areas, according to Kristina McPherson, Grow Therapy company spokesperson. The first focus is on expanding into employer-sponsored mental health benefits.
“Employers’ mental health benefits are known to be either high-quality or affordable, but rarely both. … Employer-sponsored benefits and insurance benefits were built separately, creating a disconnect (i.e., when people max out their employer benefits, they must pay cash or switch to a provider that accepts their insurance),” McPherson said in an email. “Grow connects those pieces so care continues without disruption. For employers, it means continuity, better outcomes, and paying for care that actually happens.”
In addition, the company plans to integrate with primary care through partnerships with health systems, McPherson said. Primary care is often where mental health needs are identified, and Grow Therapy allows medical teams to coordinate referrals and share important medical context.
Lastly, the financing will help Grow Therapy build advanced AI tools, with a focus on improving the experience for patients and providers, McPherson added. Some of its current AI tools include an AI notetaker for providers and a generative AI journaling tool for patients.
When asked about the company’s exit strategy, McPherson responded that this is not Grow Therapy’s focus at this time. Instead, the company is looking to “build its business for the long-term.”
“Grow started because the status quo was flawed and failing,” McPherson said. “There were attempts to improve this, but mental health didn’t need another directory. It needed structural change at every level. Our ultimate goal is to connect and support patients, providers, and health plans, making it easy for people to find incredible, insurance-covered care, while helping mental health professionals build thriving practices.”
Photo: doyata, Getty Images
