Meru Health Raises $38M for Online Mental Health Platform

The Rising Demand for Accessible Mental Healthcare

The COVID-19 pandemic has had a profoundly negative impact across numerous facets of life. However, a potential positive outcome of this global crisis is a diminished stigma surrounding discussions of anxiety, depression, and burnout. It’s increasingly common to find that those we connect with are experiencing similar emotional challenges.

Consequently, mental health professionals, including therapists and psychiatrists, are facing unprecedented demands on their services. It’s important to recognize that not all practitioners are equivalent, and unfortunately, some psychiatrists may be inclined to quickly prescribe medication rather than explore alternative treatment options.

Introducing Meru Health: A Comprehensive Solution

Meru Health is a startup dedicated to addressing the difficulties in accessing high-quality mental health support. The company offers a comprehensive online mental health solution designed to improve care delivery.

Founded in 2016 by Kristian Ranta, based in San Mateo, California, the company’s origins are deeply personal. Ranta’s brother, Peter, tragically took his own life, leading him to believe that access to improved mental health resources could have altered the outcome.

The surge in demand for online healthcare options, driven by the COVID-19 pandemic, significantly benefited Meru Health. The company experienced a tenfold increase in its customer base and approximately 700% revenue growth in 2020.

Today, Meru Health has announced a successful $38 million Series B funding round, bringing its total funding since inception to $51.3 million. Industry Ventures spearheaded the $30 million equity portion of the round, with an additional $8 million secured through debt financing.

Early Research and the Importance of Human Connection

For its initial three years, Meru Health prioritized research to evaluate the effectiveness of digital therapy and traditional psychiatric approaches. Ranta felt that existing evidence was insufficient and lacked robustness.

The company’s research led to the conclusion that while “digital tools are valuable, they are most effective when combined with human interaction.”

Purely app-based solutions, the company found, often fail to maintain user engagement when addressing conditions like depression, anxiety, and burnout.

“Maintaining accountability and fostering a human connection are crucial for sustained engagement,” Ranta explained to TechCrunch. “Without these elements, individuals are more likely to discontinue treatment.”

Partnerships and Demonstrated Value

Currently, Meru Health collaborates with organizations like Stanford University, Fortune 100 and 500 companies, Employee Assistance Programs (EAPs) such as Wellspring, and healthcare payers including Cigna, Humana, and Moda Health. They provide an online mental healthcare program that demonstrates both robust and enduring clinical results.

The startup effectively markets its solution to employers by showcasing the financial benefits of offering the program to their workforce. Meru Health estimates that employers can achieve cost savings exceeding $6,000 per enrolled participant, due to reduced healthcare expenses and improved worker productivity resulting from addressed anxiety and depression.

A Holistic Approach to Mental Wellbeing

A key differentiator of Meru Health’s methodology is its holistic focus, addressing both mental and physical wellbeing simultaneously, rather than concentrating solely on one aspect.

“Our research indicated that talk therapy alone is not sufficient for all mental health challenges,” Ranta stated.

The program incorporates support for improved sleep and nutritional guidance, recognizing the interconnectedness of sleep and mental health.

“We are unique in our attention to the relationship between food and mood,” he added.

Furthermore, the program utilizes a wearable device to monitor physical biomarkers, enabling individuals to observe the impact of techniques like deep breathing and “gain control over their stress responses,” according to Ranta.

“One of the difficulties in mental health assessment is the reliance on self-reporting. We are integrating objective data capture and providing feedback to our patients,” he shared with TechCrunch.

Future Growth and Continued Research

The holistic approach is proving successful, and Meru Health intends to use the new capital to expand insurance coverage across more states.

“We are expanding our nationwide network with the goal of being available in 40 states by the end of the year,” Ranta announced.

The company also plans to increase its team, currently comprised of approximately 170 employees.

Continued clinical trials are also a priority, with Ranta emphasizing a commitment to “conducting science rigorously.”

“We are committed to open data sharing through trials with leading universities and transparently publishing all results. Our research demonstrates that our approach yields 3-5 times better clinical outcomes compared to the standard of care in the U.S., with an approximately 80% completion rate, significantly higher than the 30-50% rate observed in traditional therapy due to enhanced engagement.”

Industry Recognition and Investment Rationale

Fanni Fan, VP at Industry Ventures, highlighted the firm’s long-standing interest in the mental health sector and their desire to support entrepreneurs leveraging technology to enhance access and quality of care in behavioral health.

Meru Health distinguished itself from competitors through its “exceptionally high engagement and completion rates, strong clinical outcomes validated by long-term studies, and a three-month curriculum coupled with biofeedback that drives engagement and facilitates outcome measurement for payers,” Fan explained to TechCrunch.

Note: This article was updated after publication to include an investor name that was initially omitted.