Digital mental health startup Koa Health has announced a $16.5 million Series A funding round as it prepares to launch operations in the United States. The company, which spun out of Telefónica’s innovation incubator Alpha, offers digital mental health services to employers and health care systems. Koa Health’s mission is to improve access to mental health care through innovative technology and personalized digital tools.
CEO Oliver Harrison said the spinoff from Telefónica was always part of Koa Health’s growth plan. “There can be some constraints around being in a corporate incubator, culturally and in terms of business processes,” Harrison told Behavioral Health Business. “Being independent gives us freedom to operate. Telefónica is great at running a telephone company, but they recognize that this is non-core for them. New shareholders bring capital but also critical expertise.”
New Funding Brings Expertise and Growth Potential
The Series A round was led by Ancora Finance Group and Wellington Partners. Ancora brings experience in guiding companies through growth stages, while Wellington Partners contributes deep expertise in digital health care. The funding will allow Koa Health to scale operations in Europe and the United States, expand research and development, and advance clinical trials.
Harrison emphasized the importance of scaling to address gaps in care. “Our first clinical application focuses on body dysmorphic disorder. There are 30 states across the U.S. that don’t have any credentialed clinicians able to treat that, and that’s the kind of disparity we really want to address,” he said.
Koa Perspectives: Targeting Clinical Gaps
Koa Health has developed an FDA-pending app called Koa Perspectives in collaboration with Massachusetts General Hospital. The app aims to provide clinical support for patients with body dysmorphic disorder, an area where access to qualified clinicians is extremely limited in many states. The app is designed to supplement clinical care, helping patients manage symptoms through structured digital interventions and personalized guidance.
Harrison explained that addressing these gaps is a key focus of Koa Health. “We simply do not have enough clinicians to go around. We want to be able to work with existing health care systems to make each clinician, using a hybrid model, able to treat 10 times or 20 times the number of patients.”
Employer-Focused Digital Solutions
Beyond clinical applications, Koa Health offers digital solutions designed for workplace wellness. Its Koa Foundations app provides employees with access to mental health activities that reduce stress, improve sleep, and promote relaxation. The platform emphasizes prevention and wellness, giving employers a tool to support the mental health of their workforce.
“The pandemic has highlighted how critical workplace mental health is,” Harrison said. “Koa Foundations allows organizations to support employees at scale, before issues become crises.”
Health System Applications
For health care systems, Koa Health has developed Koa Mindset, an app that helps clinicians triage patients efficiently. By integrating digital tools into clinical workflows, the app enhances clinician capacity while improving patient access to care. Harrison said this hybrid approach maximizes the impact of existing clinicians and reduces barriers to treatment.
Koa Mindset captures data ethically to ensure both patient privacy and the ability to measure outcomes. “We want to make sure every patient receives care that’s evidence-based and personalized,” Harrison said. “Our solutions are designed to integrate seamlessly with existing care models.”
Four Key Differentiators
Harrison highlighted four aspects that set Koa Health apart from other digital behavioral health companies. First, Koa’s solutions are integrated across platforms, enabling a cohesive experience for patients and clinicians. Second, they are evidence-backed, with clinical research supporting efficacy. Third, the tools are personalized to meet individual needs. Finally, Koa Health prioritizes ethical data collection and privacy.
“These four pillars guide everything we do,” Harrison said. “Our goal is to ensure that mental health support is accessible, affordable, and effective.”
Expanding Access Across the U.S.
Koa Health’s launch in the United States represents a major step in addressing the nationwide shortage of behavioral health clinicians. By leveraging digital tools, the company aims to increase access to quality mental health care, particularly in underserved states and regions. Harrison said the company is focused on scaling thoughtfully to reach as many people as possible.
“We want everyone across the United States to have access to high-quality, affordable mental health solutions,” he said. “Digital technology gives us the chance to extend the reach of clinicians and make mental health care more equitable.”
Research and Development Goals
In addition to expanding access, Koa Health is investing heavily in research and development. The company is exploring new digital interventions and refining its current apps to ensure they meet clinical standards and deliver meaningful outcomes. Harrison noted that personalized care is at the core of these efforts.
“Our research and development focus ensures that every product we launch is backed by data, clinically validated, and tailored to the needs of individual users,” he said. “This approach allows us to improve outcomes while scaling access to care.”
Partnerships and Strategic Growth
Koa Health’s growth strategy includes partnering with health care systems, employers, and academic institutions to expand reach and validate solutions. These partnerships are intended to integrate digital tools into real-world care settings, supporting both patients and clinicians. Harrison emphasized that collaboration is critical to achieving long-term impact.
“Partnerships allow us to integrate our tools into existing workflows and maximize their impact,” he said. “We are focused on building solutions that clinicians and patients can trust.”
Looking Ahead
With $16.5 million in new funding and a U.S. expansion underway, Koa Health is positioning itself as a key player in the digital behavioral health space. By addressing gaps in clinician availability, providing employer and health system solutions, and emphasizing research-backed, personalized care, the company is tackling some of the most pressing challenges in mental health today.
“Our mission is simple,” Harrison said. “We want to improve mental health outcomes for everyone, everywhere. Digital technology is the tool that allows us to do that at scale, and this funding is a major step toward achieving our vision.”
Koa Health’s U.S. launch comes at a critical time, as demand for mental health services continues to grow in the wake of the COVID-19 pandemic. By combining innovative digital tools with clinical expertise, the company aims to make mental health care more accessible, efficient, and effective for all Americans.
