Extensive market guide, funded by Pivotal Ventures, unpacks the investment potential for investors and startups for tech-enabled solutions
REDWOOD CITY, Calif.–(BUSINESS WIRE)–An exclusive report from Telosity by Vinaj Ventures reveals a record-breaking market demand for tech-enabled, mental health solutions to help combat rising rates of youth anxiety, depression and suicide. Providing extensive industry research and actionable insights, Youth Wellness & Mental Health: A $26 Billion Opportunity, will serve as a tool for the founder and investment communities to categorize and assess opportunities in the youth mental health digital arena.
“There’s never been a more opportune time for investors to do good and enter an accelerating market that has experienced a growth rate of 15X over the last four years,” said Faye Sahai, Partner at Telosity by Vinaj Ventures. “This extensive, new guide is a call to action – for startups servicing youth mental health to show their unique value, clinical evidence and traction and for investors looking to make their mark by supporting innovative ideas that tackle this growing challenge head-on.”
The 80-page report by Telosity by Vinaj Ventures, a thought leader in the youth mental health startup and investment market, spotlights the confluence of trends creating investment opportunities, including growing investments and deals in the mental health arena; the surge in mental health challenges in young people compounded by limited access to therapy and other resources; and the ability for tech-enabled solutions to have impact at scale. The market guide received funding support from Pivotal Ventures, a Melinda French Gates Company.
Investments in the market are growing: The mental health youth market is projected to reach $26 billion by 2027. VC investments in youth mental health companies catapulted from $59 million in 2018 to $871 million in 2021, demonstrating an astounding 15X growth rate.
Youth mental health challenges are on the rise: The surge in mental health challenges in young people 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 U.S. experience a mental health 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 a mental health disorder unable to receive the care they need.
Tech solutions are growing: Tech investments are moving beyond teletherapy, with tech-enabled solutions having impact at scale. For example, 96% of all products developed by digital health ventures focused on mental health are mobile applications. Numerous studies have demonstrated that mobile apps are effective and potentially significant tools for the assessment, management and treatment of youth mental health. A 2020 study by the American Psychological Association acknowledges the use of apps as “helpful and accessible tools in the assessment and treatment of anxiety in youth.” Additional solutions may include non-licensed peer-to-peer support models, group models, chatbots, empathetic advisors using artificial intelligence, and virtual and augmented reality.
Insights and Guidance for Founders and Investors
Youth Wellness & Mental Health: A $26 Billion Opportunity considers all facets of this emerging market, distilling the high-impact market trends necessary for informed decision-making. It leverages insights from more than 700 startups and showcases case studies and Telosity’s proven success helping founders start and grow companies focused on youth mental health. The report provides comprehensive guidance and analysis of the most significant learnings and considerations for investors and startups to navigate barriers, including:
- Understanding the impacts of COVID, which are far-reaching and continuing to unfold.
- Evolving business models, including B2B, Direct-to-Consumer and Business-to-Business-to Consumer.
Addressing the broad needs of young people, and acknowledging that mental wellbeing and health are dependent on a range of factors. Investors want to see evidence-based solutions that are affordable and focus on more than one health factor.
- The mergers and acquisitions (M&A) in this space continues to increase, as brands and founders leverage their power to broaden offerings to be more comprehensive.
- Adopting the startup solutions across different customer segments, including payer, provider and education.
- Engaging a diverse team with different skill sets and experiences to ensure founders have the relevant industry expertise to scale a tech company, hire the right talent and navigate the 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, Partner at Telosity by Vinaj Ventures. “The need for tech-enabled solutions couldn’t be greater. Tech is a great leveler, democratizing access to care and allowing much-needed resources to reach a larger population.”
Read the complete report: Youth Wellness & Mental Health: A $26 Billion Opportunity
About Telosity by Vinaj Ventures
Vinaj Ventures is an innovation and investment services boutique consulting firm. Telosity by Vinaj Ventures focuses on early-stage companies with affordable and scalable solutions to improve mental well-being in 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.