Mantra Health Raises $22M to Expand Mental Health Services

Mantra Health Secures $22 Million in Series A Funding

Mantra Health, a digital mental health company specializing in support for young adults, has successfully closed a $22 million Series A funding round. This investment was spearheaded by VMG Partners, with participation from new investors including New Market Venture Partners, Elements Health Ventures, 14W, and Alumni Ventures.

Existing investors, such as Canaan Partners, Global Founders Capital, Baleon Capital, Western Tech Investments, and City Light Capital, also contributed to this round. With this latest influx of capital, the total funding secured by the company now approaches $28 million.

Providing Virtual Mental Healthcare to Students

The company’s core mission is to deliver virtual mental healthcare services specifically to students attending colleges and universities throughout the United States. Mantra Health integrates clinical expertise with innovative software and design to enhance the mental wellbeing of over 20 million students.

This is achieved through strategic partnerships with both higher education institutions and health insurance providers. Currently, Mantra’s comprehensive care program is implemented on 52 campuses nationwide, including prominent universities like Penn State, Miami Dade College, and the Massachusetts Institute of Technology (MIT).

A Collaborative Approach to Campus Mental Health

Mantra Health focuses on augmenting existing campus counseling resources rather than replacing them. The company provides dedicated psychiatry and therapy professionals who work exclusively with students at each partnered school.

This approach positions Mantra as a digital extension of the on-campus counseling staff and existing provider networks, offering increased access and support.

Origins and Founding Principles

Founded in 2018 by Ed Gaussen, Matt Kennedy, and Dr. Ravi Shah, Mantra Health arose from a desire to address shortcomings in the mental healthcare system for young adults. Ed Gaussen, now the CEO, shared that the company’s inception was fueled by a personal experience.

Gaussen recounted how a sibling’s mental health challenges led to dropping out of college in 2016, highlighting the difficulties in locating suitable care. “The process of finding an appropriate provider was chaotic, and the costs associated with treatment were substantial,” he explained.

Personal Motivation and Company Growth

Gaussen’s experience motivated him to delve into the mental healthcare landscape during his time as a venture capitalist. He sought to understand the existing solutions and identify areas for improvement. This exploration ultimately culminated in the founding of Mantra Health alongside Matt Kennedy and Dr. Ravi Shah.

Students initiating services with Mantra Health begin with an online assessment to determine the most appropriate care pathways. Following this, they can schedule a video consultation to discuss their concerns and explore treatment options.

Personalized Care and Ongoing Support

A Mantra Health provider then collaborates with each student to create a tailored plan, potentially incorporating therapy, lifestyle adjustments, and medication when necessary. Students maintain consistent access to their provider and utilize tools to monitor their progress.

The newly acquired funding will be strategically allocated to expand the team fourfold over the next year, encompassing all facets of the business, including product development and clinical operations. Further investment will be directed towards strengthening the virtual provider group and broadening the company’s geographic reach.

Commitment to Diversity and Future Innovations

A portion of the funding will also be dedicated to scaling the company’s diversity scholarship program, providing financial assistance to individuals from marginalized communities pursuing mental health-related degrees. Matt Kennedy, COO and co-founder, outlined plans for future service enhancements.

“We intend to introduce new digital-first treatments, expand the specialties within our provider group, and diversify our payment options in the coming year,” Kennedy stated. “Our vision is to provide a comprehensive mental wellness pathway for each student, from their initial enrollment through post-graduation life.”

New Insurance Referral Program

Alongside the funding announcement, Mantra Health is launching a new insurance referral program designed to support both immediate and ongoing mental healthcare needs. This program facilitates the use of students’ insurance coverage as the primary payer, rather than relying on school funding.

Mantra Health is currently in-network with Optum, Cigna, and various local payers, and the insurance referral program is being rolled out as a pilot initiative.