When Headspace merged with on-demand mental healthcare platform Ginger, I was surprised. After all, Ginger raised $100 million in Assortment E funding legal a few months ago — and last time I spoke to CEO Russell Glass, he wired the importance of integrating into employer-paid health plans. To me, Headspace’s meditation app is about as narrate to user as one may dart, so what trade did Ginger have to acquire into literal trade with it? Fragmentation, mighty?
Turns out, there’s precedent, and, per a slew of health tech investors and techies, there’s more consolidation and commodification to advance in behavioral health. I worship learning things!
As we talked about all the way via a Twitter Spaces about the merger, Headspace has been pursuing clinical validation for mindfulness for fairly a whereas. That validation may encourage it pitch its somewhat-unique employee benefit program and compete with its closest rival, Calm. By merging with an on-demand mental healthcare platform such as Ginger, Headspace can now provide a more holistic approach to mental health. Ginger, for folk that don’t know, specializes in helping folk access care when they want it, ranging from textual explain material-based beef up to escalation to trainers in real time.
But beyond the information, what does this mean? There are a few main takeaways I had after the Spaces. First, within the best-case scenario, Headspace and Ginger’s merger may level to us what a holistic and integrative approach to mental health may stare like. As Omers Ventures’ Chrissy Farr said, some patients may exercise a combination of approaches that vary over time. The industry is evolving so that customers have more alternate recommendations when it comes to mental health care; from meditation to texts to Zoom therapy classes. 2d, and this came up within the course of the chat, parts of behavioral health are going to acquire commoditized as the sector grows. Now, it’s no longer adequate to legal connect a user to a specialist. How attain platforms more thoughtfully connect nuanced patients to nuanced alternate recommendations? It’s more than holistic, it’s integrative, says Lux Capital’s Deena Shakir.
Finally, 2021 is all about consolidation — and that involves digital health. 7WireVenture’s Alyssa Jaffe notorious that 80% of the value and complexity in mental health is with severe mental illnesses, however 80% of startups begin with decrease acuity care. The unusual blended entity may become more acquisitive in what it aspires to address, now, beyond non-acute stipulations.
In the remainder of the newsletter, we’ll acquire into fintech’s friendly foes, edtech turning into SaaS and a must-read LatAm deep dive. As always, you can beef up me by following me on Twitter @nmasc_, where I submit all my work within the course of the week.
For the worship of fintech
On Fairness this week, we spoke about how fintech startups Ramp and Brex are rising into their massive valuations. The conversation bubbled up because Ramp raised cash at a $3.9 billion valuation, whereas Brex announced the launch of a $150 million debt enterprise trade inner days of each various.
Here’s what to know: Ryan Lawler and Alex Wilhelm dug into Brex and Ramp’s diverging M&A strategies for deeper insight on how to differentiate within the corporate management space.
While Ramp appears primarily drawn to offering customers a detailed examine into company finances with an examine toward value protect watch over, many of Brex’s substantial announcements and initiatives lately have targeted on helping present small companies — particularly e-commerce sellers — faster access to cash flows via instant payouts.
Personal finance for startups:
- Why fintechs are making an attempt for up legacy financial companies companies
- Israel’s maturing fintech ecosystem may soon create global disruptors
- Embedded finance gained’t make each firm into a fintech company
Hiring is (level-headed) hard
I wrote two stories this week that underscore two realities about the hiring landscape today. First, I reported that tech bootcamp Flockjay within the discount of at least half of its group as it pivoted away from its original job placement focal level. 2d, Workstream raised $48 million for its textual explain material-based recruitment platform for hourly workers.
Here’s what to know: Flockjay’s total premise was helping non-tech workers break into tech via sales jobs. Its contemporary pivot to a B2B SaaS tool tells us how hard of a trade job placement may be, even in high-demand roles such as sales operations. A day later, Workstream raised cash for its recruitment software for the hourly employee. The $48 million Assortment B is a sign on how employers facing high turnover are willing to pay cash for recruitment tools that meet candidates where they are, which may be their cellular telephones.
While one story tells us hiring is a hard trade to attain at scale, another reveals that present gaps level-headed want targeted attention.
Dear Seedlings, take sign:
- You can’t hack your YC application, however right here’s what to avoid
- Andreessen Horowitz legal rolled out a $400 million fund that’s expressly for seed deals
- Future tech exits have a lot to stay up to
TechCrunch Disrupt is less than a month away. And I’m shook.
Train “Mascarenhas20” for a sweet, sweet discount code if you happen to consume your designate. It’s a stacked line up of candid speakers and no-BS questions. But, in case you want more convincing on why it’s charge attending, check this out:
- Gain traits, advice and value at these special breakout classes all the way via TC Disrupt 2021
- Seth Rogen is coming to TechCrunch Disrupt to talk about the weed trade
- Canva CEO Melanie Perkins will reveal us about the crawl to a $15B valuation at Disrupt
- Peep how Duolingo started with CEO Luis von Ahn at Disrupt 2021
Newsroom top picks
Favorites from TechCrunch
- It’s time for the VC community to stop overlooking the childcare industry
- With more cash and a launch, Vannevar Labs is reconnecting Silicon Valley to its protection industry roots
- Zeit’s early warning wearable for sleep strokes may save hours and lives
- Bankers chase Byju’s for IPO, valuation pegged up to $50 billion
- Tuna raises $3M to address complexity of e-commerce payments in Latin America
- Sugar raises $2.5M in seed funding to connect apartment residents
Favorites from Extra Crunch
- India’s path to SaaS leadership is clear, however challenges remain
- Why global investors are flocking to back Latin American startups
- Zūm CEO Ritu Narayan explains why equity and accessibility works for mobility companies
- Why have the markets spurned public neoinsurance startups?
To discontinue, a friendly reminder that it’s level-headed hard for many folk to raise capital these days. The increase, my chums, is uneven.
Till subsequent week,