Mindstrong Inc. appears to be winding down after raising over $100 million in venture capital.
The Menlo Park, California-based startup has terminated almost all of its C-suite along with nearly 130 other jobs and is closing its headquarters. The move is the latest in a string of ominous developments in the behavioral health tech space.
On March 10, the company will end patient services as part of a “reorganization” of the business, according to a customer services agent.
Mindstrong Head of People A.J. Ruiz told the California Employment Development Department in a memo the closure and the layoffs are permanent.
The move impacts 128 people. The terminations will begin on March 24 and end on April 15. The employees are not represented by a union, according to the memo.
The layoffs include the company’s CEO, chief financial officer, chief technology officer, and dozens of vice president and senior-titled roles. The layoffs impact 46 therapists and two nurse practitioners as well.
Behavioral Health Business has contacted several company representatives, and they have yet to respond. This story may be updated.
Mindstrong raised a total of $160 million in venture capital since its founding in 2014, according to Crunchbase. Former director of the National Institutes on Mental Health (NIMH) Dr. Tom Insel is a co-founder and ex-president of the company.
The company raised a $100 million Series C funding round in May 2020. Its backers in that round included General Catalyst, ARCH Venture Partners, Foresite Capital, 8VC, Optum Ventures, and What If Ventures.
The company has gone through a handful of pivots.
At the time of the Series C round, Mindstrong pitched itself as a telehealth company that used AI-powered digital biomarker technology to track and influence care. In 2017, it pitched itself as a digital biomarker-tracking platform for neuropsychiatric and neurodegenerative disorders.
Today, the company’s website says it offers virtual coaching, therapy and psychiatry services through a mobile app in 13 states.
This isn’t the only behavioral health provider closing its services.
BHB reported last week that Delphi Behavioral Health is shutting down after disclosing it would close all of its Florida facilities.
Companies featured in this article:
8VC, ARCH Venture Partners, Foresite Capital, General Catalyst, Mindstrong, Optum Ventures, What If Ventures
