Surprised when Headspace merged into Ginger, an on-demand mental health platform, was I? Ginger had just raised $100 million in Series E funding a few months back, and Russell Glass, the CEO, stressed the importance to integrate into employer-paid healthcare plans. Headspaces meditation app seems to be as close to the consumer as it gets. So why did Ginger need to go into business with it? Fragmentation?
It turns out that there is precedent and there will be more consolidation and commodification in behavioral health, according to a number of techies and investors in health tech. It's a joy to learn new things!
We discussed the merger during a Twitter Spaces. Headspace has been working towards clinical validation of mindfulness for quite some time. This validation could allow Headspace to present its new employee benefit program and compete against Calm. Headspace now has a holistic approach to mental well-being by combining with Ginger, an online mental healthcare platform. Ginger is a platform that helps people get the care they need. It offers text-based support, escalation, and trainers in real-time.
What does this all mean beyond the news? After the Spaces, there were a few key takeaways that I took away. In the best case scenario, Headspace and Gingers could merge to show us how a holistic and integrated approach to mental health can look. Chrissy Farr, Omers Ventures Chrissy Farr stated that some patients may benefit from a variety of approaches over time. Users have many options for mental health care, from texts and meditation to Zoom therapy sessions to texting. A second point was made during the chat: as the sector grows, certain parts of behavioral healthcare will become more commoditized. It is no longer enough just to connect users to specialists. How can platforms connect more nuanced patients with nuanced options? Lux Capitals Deena Shahir says it is more than holistic. It's integrative.
The year 2021 will be all about consolidation, which includes digital health. 7WireVentures Alyssa Jaffe pointed out that while severe mental illness accounts for 80% of mental health costs and complexity, 80% start with lower-acuity care. The new entity could be more ambitious in the issues it seeks to address beyond acute conditions.
The rest of this newsletter will focus on fintechs friend foes, edtech becoming SaaS, and a LatAm deep dive. You can follow me on Twitter @nmasc_ to see all of my work throughout the week.
Fintech is my passion
Equity discussed this week how Fintech startups Ramp (and Brex) are growing to their huge valuations. Ramp raised $3.9 billion in funding, while Brex launched a $150 million debt venture company within days.
Here's what you need to know: Alex Wilhelm and Ryan Lawler looked into Ramps and Brex diverging M&A strategies to gain a deeper understanding of how to distinguish in the corporate management space.
The following story is a summary:
Ramp may be primarily concerned with providing customers with a detailed overview of company finances with an eye towards cost control. However, Brex has been making big announcements lately that have focused on helping small businesses, especially e-commerce sellers, get faster access to cash flow through instant payouts.
Personal finance for startup:
It is still difficult to hire
Two stories I wrote this week highlighted two realities of today's hiring landscape. First, Flockjay's tech bootcamp cut at least half its workforce after it shifted away from its original job-placement focus. Workstream raised $48 Million for its text-based platform for hiring hourly workers.
Here's what you need to know: Flockjays whole premise was to help non-tech workers get into sales jobs. Flockjays recent shift to a SaaS B2B tool shows how difficult it can be for businesses to place employees in high-demand sales roles. Workstream raised money the next day for its hourly worker recruitment software. Employers with high turnover will be willing to spend $48 million on tools that allow them to meet potential candidates wherever they are.
One story says that hiring is difficult at scale. Another shows that there are still gaps in the workforce and needs to be addressed.
Dear Seedlings:
Around TC
TechCrunch Disrupt will be less than a month away. I am awestruck.
Mascarenhas20 is a sweet code that will give you a sweet discount when you purchase your ticket. There are many candid speakers and no-nonsense questions. If you want to know more about why it is worth attending, this video will convince you:
Newsroom Top Picks
TechCrunch Favorites
Extra Crunch Favorites
Let me end by reminding you that it is still difficult for many people to raise capital these day. My friends, the boom is not even.
Until next week
N
