Cerebral Inc., a startup offering counseling, medication, and other mental health services, more than quintupled its value to $ 1.23 billion.
The San Francisco-based company raised $ 127 million in a round led by Billionaire Len Blavatnik’s Access Industries, Chief Executive Officer Kyle Robertson said in an interview. Nami Park, a consultant to Access, has joined Cerebral’s board of directors.
The new capital will be used to expand group therapy and couple counseling services, and to add treatments for PTSD, bipolar disorder, substance abuse, eating disorders, phobias, obesity and diabetes. The company currently treats anxiety, depression, insomnia, and ADHD, among others.
Launched in January 2020, Cerebral operates a mobile app and offers monthly subscriptions. It has partnerships with insurers like Cigna Corp. and Anthem Inc. and hopes to be an on-network resource for all insured Americans by the end of 2023. The company has approximately 1,900 contract and full-time employees, most of whom are clinicians.
“We started at an opportune time to address a major societal problem that has been exacerbated by the pandemic,” Robertson said in an interview. He described Cerebral’s ambitions to become a “one-stop shop” addressing the high costs, long waiting times, and stigma of traditional mental health care.
Robertson said the company aims to schedule patient consultations as early as 10 minutes, or two days at most, after signing up. That compares to waiting up to three months for a personal psychiatrist visit elsewhere, he said. Cerebral clinicians work an average of about 25 hours a week, and the company has treated more than 100,000 patients.
“We barely scratch the surface, with 60 million Americans in therapy and 45 million taking an antidepressant,” he said. He expects Cerebral to consider launching in new countries and strengthening work with employers.
Silver Lake Waterman, Artis Ventures, Bill Ackman and Chris Burch also participated in the funding round. Cerebral’s existing investors including Oak HC / FT, WestCap, AirAngels and Liquid 2 Ventures also attended.
Another digital mental health company, Talkspace, I Agree go public in January through a SPAC merger. Other startups, including Ginger and Geode Health, have raised capital from Blackstone Group Inc. and KKR & Co., respectively.