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These are the 13 mental health startups that could IPO, make acquisitions, or get bought this year, according to analysts

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Modern Health: M&A target


Modern Health cofounder and CEO Alyson Watson.

Modern Health



Modern Health provides personalized mental health treatment to employers, including coaching and therapy. DeGagne and CB Insights lead healthcare analyst Alexander Lennox-Miller said Modern Health could be a good acquisition target for the right buyer.

Lennox-Miller said it’s unlikely Modern Health could snag the same valuation from its last fundraise in a deal today. The startup’s February 2021 fundraise, a $73 million Series D, valued Modern Health at $1.17 billion.

Lennox-Miller pointed to Modern Health’s headcount, which he said isn’t growing, and noted the company hasn’t any made acquisitions or raised fresh funding since 2021.

In statements sent to BI for this story, Modern Health executives argued its headcount isn’t indicative of its performance.

“We believe Modern Health is in a better position than any other company in its field. The growth-at-all-costs mindset is no longer valid, and successful companies are focused on building sustainable and profitable businesses, which is what Modern Health is doing,” Modern Health CEO Alyson Watson said.

“While others in our industry are struggling to raise capital due to burning unsustainable levels of cash every year, we expect to become profitable with what’s on our balance sheet without requiring additional funding. Our growth speaks for itself, with a remarkable 600% growth rate from 2020 to 2023 and achieving cash flow positivity in Q1 of this year. As a result, we expect Modern Health to be the first in our space to reach profitability.”

DeGagne said employer-focused mental health startups such as Modern Health have the potential for more profitable growth with “stickier” recurring revenue models.

He said pharmacy giants Walgreens or CVS Health might seek to pick up a mental health asset like Modern Health. However, as retailers like Walmart step out of healthcare entirely and Walgreens and CVS‘ healthcare businesses struggle, that possibility appears to be waning.

DeGagne suggested that other healthcare players, including public behavioral health companies like Talkspace or Teladoc’s BetterHelp, could consider buying Modern Health to expand their employer businesses.

Modern Health made its first and only acquisition back in February 2021, therapist-matching startup Kip, just before announcing its Series D fundraise.

In a statement provided by Modern Health, Forrester senior analyst Jonathan Roberts said, “Modern Health is certainly a partner with its finger on the pulse. With triple-digit growth over the last 3 years and its recent cash flow positive quarter, Modern Health is well positioned to take on employee mental health at scale.”

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