On-demand mental health care startup Ginger has made major headlines by securing $50 million in Series D funding, a move that further solidifies the company’s place as a leader in virtual behavioral health services. The announcement, made in August 2020, reflects not only Ginger’s growth but also the broader surge in demand for accessible, digital-first mental health care amid the COVID-19 pandemic.
The funding round was led by Advance Venture Partners and Bessemer Venture Partners, with notable contributions from Cigna Ventures, Kaiser Permanente Ventures, and Jeff Weiner, the executive chairman of LinkedIn. With this latest round, Ginger has raised more than $120 million in total funding. According to CEO Russell Glass, the investment will help the company expand its reach and deliver high-quality mental health care at scale.
Ginger’s Mission and Vision
Since its founding in 2011, San Francisco-based Ginger has been committed to addressing gaps in the mental health system. The company initially launched as a data-driven mental health app but pivoted in 2016 to focus on on-demand virtual care. Its model offers immediate access to behavioral health coaching, therapy, and psychiatry through text messaging and video appointments.
“Our mental healthcare system has long been inadequate. But in the midst of a worldwide pandemic and a tumultuous sociopolitical climate, we’re facing uncharted territory,” Glass said in a press release. “People are demanding better care, and the largest payers of healthcare are recognizing the need to respond. Ginger is uniquely able to reverse the course of this crisis at scale.”
This mission resonates deeply at a time when rates of depression, anxiety, and stress are at historic highs. By leveraging technology and partnerships, Ginger positions itself as a scalable solution for millions of people who otherwise struggle to access timely care.
A Network of Partnerships
One of Ginger’s greatest strengths lies in its partnerships with employers, health plans, and strategic allies. Today, more than 200 companies offer Ginger’s services to employees, including household names like Delta Air Lines, Domino’s, and Sephora. These partnerships provide employees with convenient access to behavioral health resources, often as part of broader wellness initiatives.
In addition to employers, Ginger collaborates with major health plans such as Optum Behavioral Health, Anthem California, and Aetna Resources for Living. These partnerships integrate Ginger’s services into existing benefits packages, ensuring coverage for members and expanding the platform’s reach.
By embedding itself within employer and payer ecosystems, Ginger is able to deliver care on a massive scale while keeping costs competitive. This approach has also made the startup especially attractive to investors looking for companies with both growth potential and sustainable impact.
Rising Demand Amid COVID-19
The coronavirus pandemic accelerated demand for virtual care across the healthcare landscape, and mental health was no exception. Social isolation, financial uncertainty, and health concerns contributed to what many experts call a parallel mental health crisis.
According to a survey conducted by Ginger, nearly 70% of U.S. workers identified 2020 as the most stressful period of their careers, ranking it alongside 9/11 and the 2008 Great Recession. These pressures translated into record demand for Ginger’s services. The company reported a 125% increase in weekly utilization for coaching and a staggering 265% increase in therapy and psychiatry sessions by July 2020 compared to pre-pandemic levels.
This surge in demand also fueled Ginger’s financial growth. The company reported that its revenue more than tripled in the past year, underscoring the scalability of its business model and the growing appetite for digital behavioral health solutions.
Industry-Wide Momentum for Mental Health Startups
While Ginger’s funding news is significant, it is part of a much larger trend. The second quarter of 2020 saw unprecedented investment in mental health startups. According to CB Insights, there were 57 deals in Q2 alone, setting a record for the sector. Collectively, these startups attracted nearly half a billion dollars in funding during the quarter.
The surge reflects a broader recognition of the importance of mental health care. Investors are increasingly drawn to companies that combine innovative technology with the ability to meet urgent needs. Virtual care solutions, in particular, are gaining traction as they remove barriers to access, such as geography, wait times, and stigma.
Ginger’s $50 million raise underscores the growing confidence in behavioral health companies as essential players in the future of healthcare.
Why Ginger Stands Out
Several factors set Ginger apart in a crowded digital health marketplace. First, its comprehensive approach integrates coaching, therapy, and psychiatry under one platform. This stepped-care model ensures that members receive the appropriate level of support, whether it’s a quick check-in with a coach or a formal psychiatric consultation.
Second, Ginger emphasizes immediacy. Members can connect with a behavioral health coach within seconds, often avoiding the weeks-long wait times typical of traditional therapy. This speed of access is especially critical during moments of crisis.
Finally, Ginger’s business-to-business model has given it stability and scale. By aligning with large employers and health plans, Ginger ensures consistent demand and widespread reach, making its services accessible to millions of people as part of their existing benefits.
Looking Ahead
With the new $50 million investment, Ginger plans to further expand its services, invest in technology, and enhance its ability to meet rising demand. Scaling its clinician network, expanding partnerships, and refining its platform will be key priorities as the company continues to grow.
The investment also signals a shift in how payers and investors view mental health. The participation of industry giants like Cigna Ventures and Kaiser Permanente Ventures reflects a recognition that mental health is not just a wellness perk but a critical component of overall healthcare.
The Bigger Picture
Ginger’s success story highlights a fundamental transformation in behavioral health care. What was once considered a niche sector is now at the forefront of healthcare innovation. The pandemic accelerated this shift, forcing patients, providers, and payers alike to embrace virtual solutions.
As demand for mental health services continues to rise, startups like Ginger are poised to play an increasingly central role. Their ability to deliver timely, affordable, and scalable care will shape the future of behavioral health — and the broader healthcare system.
For now, Ginger’s $50 million raise marks a milestone not just for the company but for the mental health startup ecosystem as a whole. It’s a sign that investors and payers alike are ready to support solutions that meet the mental health challenges of today and tomorrow.
