Digital therapeutics provider Big Health has raised $23.7 million to fuel commercialization of its insomnia and anxiety-focused therapeutics.
.406 Ventures and AlleyCorp led the round with participation from CVS Health Ventures, Blue Venture Fund, Sandbox Clinical Ventures, Gilde Healthcare, and Supermoon Ventures.
Big Health currently offers two FDA-cleared and reimbursable digital therapeutics, including SleepioRx for insomnia disorders and DaylightRx for generalized anxiety disorder.
Several pioneers in the digital therapeutics space, including Pear Therapeutics and Akili, have shuttered their operations after failing to gain traction with adoption and reimbursement. But Yael Berman, CEO of Big Health, believes the market has shifted —reimbursement pathways have improved and providers are more receptive, setting the stage for a comeback.
“We started selling [the digital therapeutics] over a year ago,” Berman told Behavioral Health Business. “And health systems, telemedicine companies, they’re dying for a non-drug alternative, especially for insomnia and anxiety. I’ve been astounded at how quickly the pipeline has grown and how quickly we’ve been able to launch with customers.”
One of the major factors that has contributed to adoption is new reimbursement pathways. In 2025, Medicare rolled out a new code to cover digital mental health treatments that are FDA cleared. And other commercial plans have also been quickly beginning to cover the therapeutics.
Big Health has also made it a priority to integrate with a provider’s workflow to make it simple for providers to prescribe the therapeutics.
“What has been very helpful for us is working through how to integrate this into the clinical workflows with the department leads of these organizations, such that providers don’t have to remember that this is an option that they have,” Berman said. “It’s surfaced in an appropriate way where they can make a clinical decision as to whether they want to assess someone for the need, and then making it really seamless for them to order it, and then a claim. It follows how they bill for others [treatment]. We remove the friction points. …Integration into the workflow is key.”
In addition to accelerating the commercialization of Big Health’s products, the latest funding round will help the team expand its strategic provider partnerships, integrate into clinical workflows and expand access to care.
“This investment reflects our belief that clinically validated, first-line digital treatments with clear reimbursement and predictable economics can meaningfully improve the lives of many, while reducing avoidable healthcare costs. We are excited to help increase access to Big Health’s digital treatments,” Tom Hawes, managing director at Blue Venture Fund and Sandbox Clinical Ventures, said in a statement.
While digital behavioral health companies have seen some challenges in the past five years, there have also been some bright spots. For example, in 2024, DarioHealth Corp. acquired fellow digital therapeutics provider Twill.
Additionally, digital therapeutics company Click Therapeutics raised $48.5 million for its product that treats a range of conditions including major depressive disorder (MDD), schizophrenia, opioid use disorder, and insomnia.