The bar for behavioral health startups just got higher

Aug 28, 2021

The merger between Headspace and Ginger signals a major shift in mental health care. Learn why meditation apps are venturing into therapy and the implications of industry consolidation. Discussions reveal critical challenges in accessing employer-sponsored mental health benefits and highlight the evolving direct-to-consumer landscape. Experts weigh in on the shortage of therapists and the need for innovative solutions to meet growing demand. A fascinating dive into the future dynamics of mental health startups awaits!

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INSIGHT

Integrative Care

Integrative care is the future, spanning meditation to traditional therapeutics.
This is reflected in recent mergers and acquisitions within digital health.

ANECDOTE

Calm and Lyra Partnership

Chrissy Farr recalls a 2020 story about Calm and Lyra partnering.
This partnership foreshadowed the current Headspace and Ginger merger.

INSIGHT

Market Size and Demand

The behavioral health market has room for multiple successful companies.
The pandemic significantly increased demand for mental health services.

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After news broke that meditation app Headspace and on-demand mental health care platform Ginger were merging, we couldn't resist hopping on the mics to do a bonus episode. And, because we were in the mood for hot takes, Natasha and Alex held the conversation on Twitter Spaces. The special guests we had on, who we'll get to down below, did not disappoint.

It's a quick show, but the tl;dr is that you want to listen if you're curious why a meditation app would get into therapy, the precedent by Lyra Health and Calm, and how consolidation looks for the sector going forward.

Here's who helped us understand and contextualize the news:

Lux Capital partner Deena Shakir (who is also coming to Disrupt, incidentally)
Chrissy Farr of OMERS Ventures (who you may also know as a former CNBC reporter in the healthech space)
7WireVentures' Alyssa Jaffee (who needs her own podcast because she was shining during the Spaces)

And, special shout out to Ginger CEO Russell Glass, who joined the Space but wasn't able to come up on stage due to technical difficulties. Twitter Spaces are fun, but the platform is still a bit nascent so goofs can bedevil live production.

However, we managed to get some notes from him via email, so let's take a quick look at those:

Glass said that he agreed with "what Chrissy Farr and others said about there simply not being enough therapists in the market today to meet the overwhelming demand," adding that there's "real global need today for what Headspace Health can offer - a scaled, comprehensive platform that can truly democratize mental healthcare."
He also doubleclicked on the discussing regarding future "meaningful market consolidation," noting that he expects to see it "especially" happen in "areas that address higher acuity care for severe mental illness.”

Make sure you are following the podcast on Twitter so that you catch us when we go live. These are meant to be spontaneous pop up shows, so your best bet is to turn on notifications to never miss our Spaces. Ok that's all. Thanks everyone!

Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.

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