Digital behavioral health companies have captured the public’s attention in recent years, raising billions of dollars and even becoming household names. Many of these startups have concentrated on low-acuity conditions such as anxiety and moderate depression, leveraging apps, virtual therapy, and AI-driven tools to provide scalable mental health solutions. These offerings have helped millions access care conveniently, often for the first time. However, the serious mental illness (SMI) space—encompassing conditions like schizophrenia, bipolar disorder, and severe depression—remains relatively underserved, despite its massive societal and economic impact. According to SMI Advisor, the annual economic burden of SMIs exceeds $300 billion, highlighting the urgent need for serious mental illness innovation.
A new nonprofit accelerator, One Mind Accelerator, is aiming to fill this gap by incubating behavioral health startups focused on addressing some of the most critical challenges in SMI care. Carmine DiMaro, director of One Mind Accelerator, told Behavioral Health Business, “I do think that there are parts of digital solutions that can actually be really excellent for serious mental illness. The digital model is really great for peer support and family education, which is a key part of serious mental illness innovation.”
High-Tech Meets High-Touch: The Future of SMI Care
Serious mental illnesses are complex and multifaceted, often requiring long-term management and coordination among multiple providers. This complexity makes a hybrid approach—combining digital tools with hands-on care—essential. Pushkar Suresh Joshi, chief strategy and science officer at One Mind Accelerator, emphasized the need for both components: “Given the complexity and the nature of SMIs, it’s always got to be high tech combined with high touch. It can’t be either or. It will always be in complement with the hands-on care that is absolutely central to recovering from SMI.” This combination is central to driving serious mental illness innovation across treatment models.
Digital tools can play a variety of roles in SMI care. Monitoring apps can track symptoms and adherence to treatment plans, while online platforms can provide peer and family support. Virtual therapy sessions and AI-driven interventions can increase access to specialized care, particularly in underserved or rural areas. Yet, these tools are most effective when paired with in-person treatment options that provide a human touch for crisis management, medication management, and hands-on psychotherapy. These hybrid approaches represent a core area of serious mental illness innovation.
Examples of SMI-Focused Digital Innovation
Some providers have already begun integrating digital tools into their SMI care offerings. Valera Health, for example, provides a continuum of mental health services for patients with mild to severe conditions, offering both virtual and in-person options. Similarly, Akin focuses on connecting caregivers of individuals with SMI through virtual platforms. By supporting caregivers, the platform indirectly improves patient outcomes, showing how technology can expand the ecosystem of care. Both examples highlight the ongoing evolution of serious mental illness innovation in practice.
The Private Sector: Driving Agility and Innovation
While most SMI care currently occurs within the public sector, private companies are increasingly playing a key role in driving serious mental illness innovation. Pushkar Suresh Joshi explained that private firms bring agility and the ability to “pressure test” ideas in real-world settings, something academia alone cannot provide. By introducing new technologies, funding, and outcome-based models, the private sector can accelerate the development and deployment of effective SMI interventions.
Vanna Health, an SMI-focused startup led by former NIH Mental Health Director Dr. Thomas Insel and Dr. Giovannia Colella, applies for-profit principles to community-based SMI care. The goal is to prove that profitable programs can scale and reach more patients. Venture investment in SMI care is also surpassing public funding, bringing not only capital but also innovative approaches for measuring outcomes. These trends are helping shape the landscape of serious mental illness innovation.
One Mind Accelerator: Nurturing the Next Generation of Startups
The One Mind Accelerator is now accepting applications for its first cohort, which will select 10 companies to participate. Each startup will receive a $100,000 investment in exchange for 5% common stock equity, with flexibility for companies that have already raised substantial capital. Participants will benefit from guidance on performance indicators, stakeholder introductions, and fundraising support. Joshi emphasized the mission: “When you get the right treatment at the right time, the results are there for everybody to see. The question is, how do you democratize that? And that’s why we launched this accelerator. Companies are the best way to scale serious mental illness innovation.”
Navigating Challenges in Digital SMI Care
Despite the promise of digital tools, the sector faces challenges, particularly in regulatory compliance and patient safety. Digital mental health company Cerebral has faced public scrutiny over its prescribing practices, highlighting the need for careful oversight. Cerebral CEO Dr. David Mou stressed the importance of focusing on high-acuity patients, stating that true value-based care lies with those at risk of hospitalization or suicide. Properly implemented digital interventions can be transformative, illustrating how serious mental illness innovation must balance technology with safety and hands-on care.
Looking Ahead: The Future of SMI Innovation
The convergence of private investment, digital innovation, and nonprofit support has the potential to redefine SMI care. Startups participating in accelerators like One Mind Accelerator can introduce scalable solutions that improve patient outcomes, reduce the burden on public systems, and expand access to high-quality treatment. As the sector evolves, serious mental illness innovation is poised to make care more accessible, sustainable, and effective for patients who have long been underserved.
