Koa Health Closes Oversubscribed €30M Series A Round
Koa Health has announced it closed an oversubscribed €30m ($36m) Series A funding round. The round had a first close in October 2020, led by Wellington Partners Life Sciences and Ancora Finance Group, and has now been fully closed with key participations from MTIP and Akilia Partners, and further contributions from Creas Impacto, Sabadell Asabys, and Mundi Ventures.
As the world hits one year in the COVID-19 pandemic, it’s become clear that it has taken a devastating toll on people’s mental health. More than half of adults reported that pandemic related stress and worry is having a negative impact on their mental health, underscoring the critical need for digital mental health solutions and increased access to care.
The funds will be used to fuel growth and expansion for Koa Health, after it was announced in November 2020 that the company is now operating independently of Alpha, Telefónica’s moonshot factory (Telefónica is the global telecommunications company headquartered in Spain). Koa Health will focus on accelerating product development, including expanding content for its digital mental wellness solutions, making programs available in additional languages, and expanding the diagnoses that Koa’s solutions can support. This includes bolstering Koa Health’s research and development to further its investment in technology that powers personalised care. Koa Health will also use this new funding to expand its international footprint including the US.
The company’s lead product is Koa Foundations, a mental wellbeing app that helps organisations better support employees with a library of evidence-based activities focused on tackling stress, sleeping better, aiding relaxation and positive thinking and boosting self-confidence. Koa Foundations is available to more than three million people through contracts with dozens of employers, healthcare providers and payers.
Further products are in development and the Series A funds will accelerate their development and launch. This will include establishing partnerships with leading health organisations across the globe to build tech-driven mental healthcare products backed by clinical research. Koa Health already works closely with a range of renowned organisations, including Massachusetts General Hospital, a top US-ranked hospital for both psychiatry and psychology, The Max Planck UCL Centre for Computational Psychiatry and Aging Research in London, and the Birmingham and Solihull Mental Health NHS Foundation Trust in the UK.
Oliver Harrison, CEO of Koa Health said: “We know that there has been a greater demand for mental healthcare on both sides of the Atlantic as the stigma around mental health continues to decline. However, we still have a long way to go. At Koa Health, our mission is to deliver mental wellbeing for all. Access to mental healthcare is a human right that shouldn’t be buried by stigma, lack of access, or affordability. With this round of funding, we’ll be able to scale our digital mental health solutions and offer a personalised, more affordable and effective solution for people to manage their mental health.”
David Germonpré, Partner at MTIP, who joins the Board of Directors, said: “Koa Health offers simple, trusted, and personalized solutions that are integrated from prevention to symptom management. The digital-first approach means they are scalable and affordable, with no compromise on quality. We were pleasantly surprised by the innovative force of the company’s technology and the deep knowledge of its team to scale rapidly on a global level.”
Dr. Christoph Kausch, Managing Partner at MTIP, continued: “The demand for mental health services is dramatically increasing on a global level. We consider Koa Health to be best placed to lead the global expansion of digital mental health solutions. As a spin-out of Telefónica’s moonshot project, their readiness impressed us deeply, and we are pleased to support them in their mission to provide better access to treatment for mental health issues”.
Dr. Rainer Strohmenger, Managing Partner at Wellington Partners, commented: “Board and shareholders of Koa Health are highly pleased to have attracted new investors MTIP, Akilia Partners, Creas Impacto, Sabadell Asabys, and Mundi Ventures to join this significantly oversubscribed round. The company now has the financial strength it needs to continue on its growth path and disrupt the field of promoting mental wellbeing and supporting symptom management for mental illnesses, which due to the large unmet medical need and very high prevalence is regarded as one of the large market opportunities in healthcare.”