Salt Lake City, Utah-based digital mental health platform Tava has successfully closed its Series B funding round, raising a total of $20 million to accelerate growth and innovation. This latest round included a $4 million extension led by Catalyst Investors, joining the earlier $16 million raised in January. Existing investors Peterson Partners, Toba Capital, and SpringTide participated alongside new investor Blue Heron Capital, signaling strong confidence in Tava’s vision.
What Makes Tava’s Digital Mental Health Platform Unique?
Since its founding in 2019, Tava has developed a cutting-edge digital mental health platform designed to make therapy more accessible and effective for patients while streamlining practice management for therapists. The company offers therapists free access to its all-in-one electronic health record (EHR) and practice management software, creating a seamless environment for delivering quality care.
Tava’s digital mental health platform works by partnering with employers, trade associations, and payers to connect patients with therapists using Tava’s technology. Unlike many platforms, Tava accepts only commercial insurance plans such as Aetna, BlueCross BlueShield, and Humana, allowing about 48 million insured patients nationwide to access its services.
Improving on Traditional Employee Assistance Programs
A key innovation of Tava’s digital mental health platform is how it improves upon traditional Employee Assistance Programs (EAPs). While typical EAPs provide just two or three free therapy sessions, Tava’s approach enables patients to continue treatment with the same therapist beyond initial visits, paying through insurance or directly. This focus on continuity of care reflects growing evidence that short-term therapy rarely leads to lasting improvement for many mental health conditions.
Dallen Allred, Tava’s co-founder and CEO, emphasizes that their digital mental health platform is designed to support meaningful, ongoing care. “There’s limited clinical evidence that two or three hours of therapy is going to move the needle in any clinically or statistically significant way for someone who has a diagnosable mental health challenge,” he explains.
How Tava Plans to Use Its New Funding
The newly raised Series B funds will be invested in advancing the digital mental health platform’s capabilities, including the development of an AI note-taking companion to assist therapists with clinical documentation. Additionally, Tava plans to expand its provider network, which currently has roughly 1,000 active clinicians, and establish partnerships with government payers to broaden access.
Kapil Desai, partner at Catalyst Investors, notes the market opportunity:
“Most employers still rely on traditional EAPs or primary medical plans, which often suffer from low quality, limited availability, or high deductibles. Tava’s digital mental health care addresses these challenges and is poised to capture a significant share of this growing market.”
Meeting Growing Employer and Employee Mental Health Needs
Mental health benefits are becoming increasingly important in workplace culture. A recent poll by the National Alliance on Mental Illness (NAMI) found that 90% of American workers view employer-sponsored mental health coverage as critical. With millennials and Gen Z entering the workforce, Allred believes mental health benefits will soon become as standard as 401(k) plans or dental insurance.
As employers plan to improve mental health access in 2024, Tava aims to meet the demand by providing a one-stop-shop through its digital mental health platform. For clinicians, it offers a single place to manage scheduling, billing, clinical notes, and more — effectively allowing therapists to “check all the boxes” they need to run their practice.
The Future of Therapy Through Tava’s Digital Mental Health Platform
Ultimately, Tava’s growth signals a shift toward more accessible, continuous, and tech-enabled mental health care. With its robust digital mental health care, Tava is positioned to revolutionize how therapy is delivered and experienced by millions.
