As the youth mental health crisis escalates, funding has been pouring into providers who provide services to meet growing demand.
Venture capital investment in youth health and mental health surged 1,376% in just four years, from $59 million in 2018 to $871 million in 2021. That’s according to a new report from Redwood City, Calif.-based Telosity, a fund from Vinaj Ventures, an investment services consultancy focused on mental health
Youth mental health despite increased investment There is still a shortage of health professionals and overall services. These conditions provide more opportunities for entrepreneurs seeking to build businesses that can help young people.
The report states that between 2005 and 2007, clinical depression among 12- to 17-year-olds increased by 52 percent. , 1 in 6 young adults aged 6 to 17 suffers from some type of mental health disorder. Anish Srivastava, founder and CEO of Telosity, said adolescent mental health services have been needed for years, but “the pandemic has definitely exacerbated the problem.”
The pandemic has also helped promote mental health Development therapy. Srivastava added that many of the growth opportunities lie in a more holistic view of the individual, as well as sleep, nutrition, fitness and health.
That said, the youth mental health market is expected to hit $26 billion by 2027, according to the report, which tracks more than 850 mental health startups.
According to Telosity, the two areas that have received the most investment over the past two years are clinician access and better online experiences. Meanwhile, the market for non-licensed support services and health and self-care is less crowded.
Of course, startups in this space face many challenges—from insurance reimbursement to patient retention and the high costs associated with customer acquisition. There are also legal and regulatory considerations that need to be taken into account. For example, when working with minors, entrepreneurs need to be aware of the Children’s Online Privacy Protection Act, which aims to protect the privacy of children under the age of 13.
Srivastava added that the youngest successful startups in the mental health industry are those that can demonstrate the efficacy of their products or services, thus making a strong case for their solutions. In other words, have data to support your claims. “One of the things we tried to filter was which [companies] had very clear results that could show clinical efficacy and could provide evidence that their solutions actually worked, rather than theories and coming up with what they thought would work. ,”He says.
