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Infographic – Q1 Mental Health Tech Funds Drop

Mental health tech venture funds

Click on image for full-size view (CB Insights)

25 June 2022. After a year of nearly constant gains in 2021, venture investments in digital mental health companies took a sharp drop in the first quarter of 2022. Technology intelligence company CB Insights issued a report this week (registration required) on these trends, which reflect the overall pattern of digital health funding so far this year.

The CB Insights data show venture funds for digital mental health technologies fell by 60 percent in the first three months of 2022 to under $800 million, from nearly $2 billion in the fourth quarter of 2021. The number of venture deals in this sector also dropped but less dramatically from 87 in Q4 2021 to 76 in Q1 2022. Throughout 2021, venture investments in digital mental health start-ups rose in three of the four quarters, almost doubling from about $1 billion in Q1 to $2 billion by the end of the year.

The decline in investments for mental health technology start-ups reflects a cooling of venture capital interest in digital health companies overall. CB Insights says digital health venture dollars dropped 36 percent from $16.2 billion in the fourth quarter of 2021 to $10.4 billion, with the number of deals falling from 709 to 653. As with venture funds for mental health technology companies, investments in digital health start-ups overall generally rose in 2021 compared to the previous year.

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