Catalan startups innovate in mental health with artificial intelligence and virtual reality
There are 38 emerging companies in the Catalan healthcare ecosystem that focus on mental health, up 15% from last year. These startups mainly use advanced technologies like artificial intelligence, virtual reality and augmented reality to develop innovative solutions.
The total funding raised by this segment of companies has hit €75 million, €59 million of which has been secured since 2020, 77% of the total. Venture capital has played a key role, contributing 92.5% of the total funding. Noteworthy investments include Koa Health (€30 million), XRHealth (€16.5 million) and Oliva Health (€12.6 million).
These innovations address an urgent global need, coinciding with World Mental Health Day held on October 10, to raise awareness of mental disorders, fight the stigma towards people affected and promote initiatives to improve care.
Barcelona, October 8th, 2024. -The Catalan ecosystem of mental health startups and scaleups is experiencing unprecedented growth. There are currently 38 emerging companies working in this area, up 15% from last year. These companies, mostly digital firms established within the past five years, mainly work with advanced technologies like artificial intelligence, virtual reality and augmented reality.
The innovative solutions they offer range from telemedicine and digital platforms to digital therapies and mobile apps. These tools are designed to tackle a broad spectrum of pathologies, including depression, postpartum depression, anxiety and hospital stress with personalized, accessible solutions to a variety of mental health needs.
These innovations, which make up 8% of all healthcare startups and scaleups in Catalonia (455), are addressing a growing global need. According to the WHO, one in four people will experience some sort of mental health issue during their lives. There are biological, socioeconomic, cultural and environmental factors involved, so things like gender, work situation, social class and residence have to be taken into account. One fourth of the population over the age of fifteen experiences emotional discomfort (one in five men and one in three women). This number increases with age and is higher among more vulnerable social groups (with a higher percentage of women affected in all groups). Plus, the likelihood of having depression is higher among women and those at risk of social exclusion1.
The situation is particularly worrying among young people: 31.2% of people aged 15 to 34 experience emotional discomfort in Catalonia and suicide has become the second cause of death in this age group2. In light of all this, the digital solutions developed in the Catalan ecosystem are a necessary and innovative response to improve the quality of and access to mental health care.
The COVID-19 pandemic was a catalyst, accelerating investment: since 2020, €59 million has been invested in this type of company, which is 77% of the total funding for this segment (€75 million). There was a noteworthy spike in 2021, with investment of more than €21 million. This investment boom has mainly been from venture capital, contributing 92.5% of the total funding and consolidating its role in the expansion of this segment of companies.
Noteworthy companies include Koa Health, which specializes in treating mental health issues with digital products and secured the largest round of funding in digital health in the history of the BioRegion of Catalonia and Spain with €30 million; XRHealth (previously Amelia Virtual Care), a virtual reality solution for mental health professionals that raised €16.5 million; and Oliva Health, a platform for professionals to treat mental health issues in the workplace that received €12.6 million. Amelia Virtual Care reached an important milestone last year when US company XRHealth acquired the Catalan firm in a strategic operation that catapulted it to global leadership with its virtual reality app for mental health therapies.
Taking into account the profile of the companies receiving the most funds, investors are looking for integrated solutions that can diagnose, treat and monitor patients at all times, combining digital tools and personalized care. Tools that make patient management and administration easier for professionals, boosting efficiency and lowering costs for the healthcare system.
“This sustained growth and growing interest from investors shows the potential technological innovation has to tackle one of the most urgent healthcare challenges of our time,” explained Biocat CEO Robert Fabregat on World Mental Health Day. This day, celebrated yearly on October 10, aims to raise awareness of mental disorders, fight the stigma towards people affected and promote initiatives to improve care.
