REDWOOD CITY, CA–(BUSINESS WIRE) – An exclusive report from Telosity by Vinaj Ventures reveals record market demand for mental health technology solutions to help combat rising rates of anxiety, depression and suicide among young people. Providing in-depth industry research and actionable insights, Youth Wellness and Mental Health: A $26 Billion Opportunity, will serve as a tool for the founder and investment communities to categorize and evaluate opportunities in the youth mental health digital arena.
“There has never been a better time for investors to do well and enter an accelerating market that has seen a growth rate of 15x over the past four years,” said Fei Sahai, Telosity Partner at Vinaj Ventures. “This comprehensive, new guide is a call to action – for youth mental health startups to demonstrate their unique value, clinical evidence and traction, and for investors looking to make their mark by backing innovative ideas that address this growing challenge head-on.”
Telosity’s 80-page report from Vinaj Ventures, a thought leader in the youth mental health startup and investment market, illuminates a suite of trends creating investment opportunities, including growing mental health investments and deals; the rise in mental health challenges among young people, compounded by limited access to therapy and other resources; and the ability for technology solutions to have impact at scale. The Market Guide received financial backing from Pivotal Ventures, a Melinda French Gates company.
Investments in the market are growing: The youth mental health market is projected to reach $26 billion by 2027. VC investment in youth mental health companies catapulted from $59 million in 2018 to $871 million in 2021, demonstrating an astonishing 15x pace of growth.
Youth mental health issues are on the rise: The rise in youth mental health challenges due to COVID is driving unprecedented market demand for youth wellness and mental health solutions. In fact, 1 in 6 youth between the ages of 6 and 17 in the US experience a mental disorder, while suicide is the second leading cause of death among people between the ages of 10 and 34 each year. These trends are further exacerbated by the ongoing shortage of therapists, with nearly half of children with mental health disorders unable to get the care they need.
Technological solutions are growing: Investments in technology extend beyond teletherapy, with technology-based solutions having a far-reaching impact. For example, 96% of all products developed by digital health businesses focused on mental health are mobile apps. Numerous studies have shown that mobile applications are effective and potentially meaningful tools for the assessment, management and treatment of youth mental health. A 2020 study by the American Psychological Association recognized the use of apps as “useful and accessible tools for the assessment and treatment of anxiety in youth.” Additional solutions may include unlicensed peer-to-peer support models, group models, chatbots, empathic advisors using artificial intelligence, and virtual and augmented reality.
Insights and guidance for founders and investors
Youth Wellness and Mental Health: A $26 Billion Opportunity examines all aspects of this emerging market, distilling the highly impactful market trends needed to make informed decisions. It uses insights from more than 700 startups and showcases case studies and Telosity’s proven success helping founders launch and grow companies focused on youth mental health. The report provides comprehensive guidance and analysis of the most significant lessons and considerations for investors and startups to overcome barriers, including:
Understanding the impact of COVID, which is far-reaching and continues to evolve.
Evolving business models including B2B, Direct-to-Consumer and Business-to-Business-to-Consumer.
Addressing the broad needs of young people and recognizing that mental wellbeing and health depend on a range of factors. Investors want to see evidence-based solutions that are affordable and focus on more than one health factor.
Mergers and acquisitions (M&A) in this space continue to increase as brands and founders use their power to expand offerings to be more comprehensive.
Making startup decisions across various customer segments including payer, provider and education.
Recruiting a diverse team with different skill sets and experience to ensure founders have the relevant industry expertise to scale a tech company, hire the right talent and navigate funding rounds.
“While the youth mental health market is young, the needs are great. The increase in investment in later-stage companies coupled with more investors investing in early-stage startups is another positive indicator that the market is growing,” said Anish Srivastava, Telosity Partner at Vinaj Ventures. “The need for technological solutions could not be greater. Technology is a great leveling tool, democratizing access to care and allowing much-needed resources to reach a larger population.”
Read the full report: Youth Wellness and Mental Health: A $26 Billion Opportunity
About Telosity by Vinaj Ventures
Vinaj Ventures is a boutique innovation consulting and investment services firm. Telosity from Vinaj Ventures focuses on early-stage companies with affordable and scalable solutions to improve the mental well-being of young people. Telosity’s client portfolio includes Daybreak Health, Flipd, Ksana Health, Manatee, Maslo, MindRight, MyLife (acquired by Meredith Corporation) and Neolth. For more information, please visit www.telosity.co.