The news: Mental health platform, Grow Therapy, has raised USD150 million ($215.1 million) in Series D financing, valuing the startup at USD3 billion.
The context: The raise was led by existing backers TCV and Growth Equity at Goldman Sachs Alternatives, with new investors BCI and Menlo Ventures joining Sequoia, SignalFire, and Transformation Capital.
The US company which links patients with therapists and psychiatrists covered by insurance said that since its founding in 2020, the startup now generates over USD1 billion in annual revenue, CEO Jack Cooper told Bloomberg.
While the company reached profitability in 2023 and has raised USD328 million to date, Cooper said that Grow is not currently focusing on an initial public offering but building “our company more effectively in the private markets.”
Grow said it is now is accessible to 220 million Americans, who have coverage through Grow’s 125+ health plans, across more than 26,000 providers.
What they said: In a post announcing the raise on LinkedIn, Cooper wrote: “We started Grow 5 years ago with a simple belief: mental health coverage needs to work: for people striving to progress their lives, for providers dedicated to serving their community, and for organizations supporting incredible care. We’ve spent every day since working to make that real.”
“With this round, we’re bringing that same model to employers and primary care — two areas where the gap between “we offer mental health benefits” and “people actually get support” is enormous. We’re here to close that.”
