Digital therapeutics developer Big Health announced Thursday that it has raised $23.7 million from notable investors betting the moment has finally come for app-based medical treatments.
Founded in 2010, Big Health, which makes cognitive behavioral therapy apps to treat anxiety and insomnia, was among the original vanguard of digital therapeutics companies. For years, these startups promised that software-based medical treatments would flourish, increasing access to care and generating huge profits. But the sector has been in a slump since high-profile company Pear Therapeutics collapsed in 2023 and filed for bankruptcy and Akili Interactive failed to live up to the hype for its video game that treats ADHD. Convincing insurers, clinicians, and patients to get on board with an entirely new treatment modality has been harder than anticipated.Â
Yael Berman, who has been CEO of Big Health since 2024, said that the new investment reflects recent momentum with payers and health system customers around Medicare billing codes for digital mental health treatments.
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