Mental Healthcare Startup Alma Closes $50 mln Series C Funding Round

Alma, a New York-based mental healthcare startup, has closed a $50 mln Series C Funding round to improve in-network mental healthcare.

The funding round was led by global private equity and venture capital firm Insight Partners, with firms like Optum Ventures, Tusk Venture Partners, Primary Venture Partners, Sound Ventures, BoxGroup, and Rainfall Ventures also participating. The round brings the total funding raised by the startup to $90.5 million, which has allowed the startup to offer a unique insurance program for mental health care. Hilary Gosher, managing director at Insight Partners who will be joining Alma as a board member, referred to the firm’s participation by stating:

“Insight’s reinvestment in Alma speaks to our confidence in the company’s trajectory and its modern, innovative approach to mental health care. We’re thrilled to support Alma in its ScaleUp stage of growth and look forward to advancing its mission to provide access to high-quality, affordable care, with frontline providers at the center of the strategy.”

The new investment will allow Alama to expands its national presence and support therapists looking to provide affordable in-network care. With the demand for quality and affordable mental healthcare, the startup makes it easy and financially rewarding for therapists to build and grow a private practice, meeting the rising patient demand. Alma founder and CEO Dr. Harry Ritter said about this approach:

“At Alma, we’re building a new model for mental health care that puts therapists at the forefront of everything we do. We can’t talk about the $221 billion yearly mental health crisis without acknowledging the providers at the frontlines of this crisis. This past year we doubled down on tools and services to support our providers and scaled our insurance offering to make it easy and financially rewarding for providers to accept insurance. I’m proud to share that today 95 percent of our providers accept insurance, making the average in-network session incredibly affordable.”

The COVID19 pandemic resulted in an increase in reported mental disorders like depression and anxiety, which the CDC associated with the stress caused by measures like social distancing. With the demand for mental healthcare options, different solutions have been created by the mental healthcare startup industry to tackle the issue.