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Welcome to The Census, your weekly roundup of what matters in behavioral healthcare.

Today, we’re breaking down:

• What venture capital looks for in behavioral health startups

• All your latest news headlines in under two minutes

Let’s dive in.

- Shân

P.S. Our thoughts are with everyone affected by the storms in Texas. We hope you and your families are safe.

Reading time: ~4 minutes.

On Our Radar

What we’re watching this week 

💰 What Venture Capitalists Want From Behavioral Health Startups

VCs are taking calculated risks on innovative approaches. Here are three things they look for.

Last week, we covered rising growth equity deals in an industry that tends to prioritize tried-and-true business models (get a TL;DR here).

This week, we’ll discuss how to attract this venture capital. 

But first: why should you care?

Well, until recently, VC firms have focused almost exclusively on startups that improve access to behavioral health care — e.g., Concert Health, Grow Therapy, and Two Chairs.

But as the market matures, they’re looking to invest beyond just improving access.

This is good news for novel digital and in-person firms needing early financial backing to reach full potential.

So, here’s what VCs really want from behavioral health startups…

1. Growth, and a heck load of it. 

That says it all. So focus on honing and communicating your growth plan. Damn well. 

2. The potential for integration into other health care practices. 

This not only allows for behavioral health firms to get patient referrals directly from a health system’s electronic medical records, it’s also better for long-term outcomes and value-based care — which are top-of-mind for VCs.

3. High exit potential. 

Ultimately, all VC-backed investors want to build a business that can successfully exit. So product-market fit and profitable unit economics matter if you want to attract this cash.

This sounds like a no-brainer, but it’s a reminder that it’s never too early to start thinking about exit strategy.

Have you landed VC? Tell us here. We’d love to share your story.

Let’s get your news headlines. 

Catch Up Quick

This week’s top stories

Latest News

📉 Hospitalizations for mental health crises fell by 93% in Oklahoma after officers were equipped with telehealth iPads through Grand Mental Health.

🌿 Daily marijuana use in the US grew by 269% from 2008 - 2022, outpacing even alcohol  — but overall, still more people drink than use pot.

🇺🇸 An increasing number of states are empowering social workers to practice across state lines under the Social Work Licensure Compact.

🪖 Veterans are turning to private mental health help, and providers can attract them by improving military cultural competency and building local connections.

🎲 Related: Military members are at higher risk for gambling addiction, but help and screening are lacking.

💊 Methadone clinics have blasted the idea of doctors prescribing the medication directly amid rising pressure to expand access. 

🧑‍💼 Acadia Healthcare’s new COO has three areas of focus: ‘people, people, and clinical outcomes’ (that’s emphasis, not a typo, thank you).

🏛️ Illinois’ legislature has banned prior authorization for inpatient psychiatric care.

🫶 Employers may start to sponsor more SUD programs as addiction in the workforce rises. 

✅ Readiness to take on risk will help vendors stand out in a competitive landscape as we move toward value-based care. 

🌱 Related: Why grassroots behavioral health providers are falling behind in VBC conversations.

🤯 Fentanyl-related deaths in Colorado have jumped by more than 900% since 2018.

😞 Related: Fentanyl is fueling a record number of youth drug deaths, and pediatricians say they feel unprepared to provide counseling on opioid addiction.

⚠️ And, drug dealers are posting photos of fentanyl test strips online to make dubious claims that their supply is “clean.”

📈 One in nine children in the US has been diagnosed with ADHD, and the CDC is calling the disorder an “expanding public health concern.”

🤒 When some people with autism have a fever, their autism-related symptoms seem to improve — now researchers are trying to find out why. 

💡 Autism therapy franchises may present a best-of-both-worlds scenario for clinicians and entrepreneurs. 

✍️ Handwritten treatment orders, long ER waits, and heavy delays in lab and test results are just a few consequences of Ascension’s cyberattack.

💰 Why California is paying meth users to get (and stay) sober. 

📕 The Council of Autism Service Providers (CASP) has released the third version of its practice guidelines for ABA in autism treatment.

🧑‍⚖️ A Texas manufacturer was ordered to pay $35k for denying a job to an applicant with opioid use disorder.

📝 A newly introduced bill proposes to stack funds to improve SUD treatment for older adults. 

Expansions, Launches, & Partnerships

🎉 Plymouth Valley Wellness announced the launch of their PHP and IOP mental health treatment programs, opening June 3rd.

🧒 Youth provider Sandstone Care has opened a new outpatient mental health and SUD treatment center in Buffalo Grove, Illinois.

💻 Lyra Health will launch Care for Teens this June, a virtual mental health offering including live sessions and personalized self-guided programs.

🍔 A new eating disorder and trauma-specialized treatment center, Haven of Hope, will open in Memphis later this summer.

🏛️ Whispering Oaks Lodge announced a new addiction-focused IOP service in Lafayette, Louisiana.

♀️ Talkspace and Ovia Health have joined forces to create the Women’s Health Coalition for Digital Solutions.

💊 Nonprofit OneFifteen will introduce a new recovery house in Dayton, Ohio.

🏗️ San Diego plans to invest ~$26M into a new addiction treatment facility, with construction beginning in April 2025.

🎓 Syra Health has expanded its nationwide footprint with another contract to train behavioral health professionals in Washington state.

🏥 American Addiction Centers has expanded and renamed its Aliso Viejo, California-based facility Laguna Treatment Center.

🤝 Concert Health has partnered with WellSpan to expand access to same-day behavioral health services alongside primary care.

Funding Rounds & Investor Moves

🤖 AI-driven mental health assessment platform Videra Health raised $5M+ for its tech that analyzes video data to detect mental health conditions.

💡 Data platform Atropos Health raised $33M to improve value-based care through real-world evidence.

🫄 Maternal mental health startup Seven Starling raised $12M+ for their postpartum therapy platform.

💻 Digital SUD provider Boulder Care raised $35M and plans to “go into states with large rural populations” where in-patient facilities are scarce.

🧒 The Oregon Health & Science University received $16M+ to develop tools that better predict mental health diagnoses and outcomes in children.

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Studies & Opinion Pieces

🌿 Seniors are the fastest growing group of cannabis users in the US, and easier access to pot may revolutionize health care for them (opinion).

🍷 An off-label treatment for alcohol use disorder, gabapentin, is linked to slower liver decline (study).

🧬 Ancient viral DNA in the human genome has been linked to major psychiatric disorders such as schizophrenia, bipolar, and depression (study). 

👷 Workers injured on the job are 35% more likely to die of opioid overdose — with people in the construction or food industries most at risk (study). 

That’s it for this week! See you next Wednesday with the latest headlines.

- Shân

P.S. You can email me here if you want to share any feedback, or let me know about a business I should be featuring.

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