Koa Health Closes Oversubscribed €30M Series A to Accelerate Growth Following Spinout From Telefónica

8 March 2021

The digital mental healthcare provider will use funds to accelerate product development,  expand US presence, and enhance R&D 

LONDON, February 9, 2021 — Koa Health, a digital mental healthcare provider offering personalized solutions backed by science, today announced it closed an oversubscribed €30 million ($36 million) Series A funding round. The round had a first close in October 2020, led by Wellington Partners Life Sciences and Ancora Finance Group,  and has now been fully closed with key participations from MTIP and Akilia Partners, and further  contributions from Creas Impacto, Sabadell Asabys, and Mundi Ventures.  

As the world hits one year in the COVID-19 pandemic, it’s become clear that it has taken a  devastating toll on people’s mental health. More than half of adults reported that pandemic related stress and worry is having a negative impact on their mental health, underscoring the critical need for digital mental health solutions and increased access to care.  

The funds will be used to fuel growth and expansion for Koa Health, after it was announced in  November 2020 that the company is now operating independently of Alpha, Telefónica’s  moonshot factory (Telefónica is the global telecommunications company headquartered in  Spain). Koa Health will focus on accelerating product development, including expanding content  for its digital mental wellness solutions, making programs available in additional languages, and expanding the diagnoses that Koa’s solutions can support. This includes bolstering Koa Health’s research and development to further its investment in technology that powers personalised care. Koa Health will also use this new funding to expand its international footprint including the US.  

The company’s lead product is Koa Foundations, a mental wellbeing app that helps  organizations better support employees with a library of evidence-based activities focused on tackling stress, sleeping better, aiding relaxation and positive thinking and boosting self-confidence. Koa Foundations is available to more than three million people through contracts with dozens of employers, healthcare providers and payers.  

Further products are in development and the Series A funds will accelerate their development and launch. This will include establishing partnerships with leading health organizations across the globe to build tech-driven mental healthcare products backed by clinical research. Koa  Health already works closely with a range of renowned organizations, including Massachusetts  General Hospital, a top US-ranked hospital for both psychiatry and psychology, The Max Planck  UCL Centre for Computational Psychiatry and Aging Research in London, and the Birmingham and Solihull Mental Health NHS Foundation Trust in the UK. 

Oliver Harrison, CEO of Koa Health said:

“We know that there has been a greater demand for mental healthcare on both sides of the Atlantic as the stigma around mental health continues to decline. However, we still have a long way to go. At Koa Health, our mission is to deliver mental wellbeing for all. Access to mental healthcare is a human right that shouldn’t be buried by stigma, lack of access, or affordability. With this round of funding, we’ll be able to scale our  digital mental health solutions and offer a personalized, more affordable and effective solution  for people to manage their mental health.”  

David Germonpré, Partner at MTIP, who joins the Board of Directors, said:

“Koa Health offers simple, trusted, and personalized solutions that are integrated from prevention to symptom management. The digital-first approach means they are scalable and affordable, with no compromise on quality. We were pleasantly surprised by the innovative force of the company’s  technology and the deep knowledge of its team to scale rapidly on a global level.”  

Dr. Christoph Kausch, Managing Partner at MTIP, continued:

“The demand for mental health services is dramatically increasing on a global level. We consider Koa Health to be best placed to lead the global expansion of digital mental health solutions. As a spin-out of Telefónica’s moonshot project, their readiness impressed us deeply, and we are pleased to support them in their mission to provide better access to treatment for mental health issues”. 

Dr. Rainer Strohmenger, Managing Partner at Wellington Partners, commented:

“Board and shareholders of Koa Health are highly pleased to have attracted new investors MTIP, Akilia Partners, Creas Impacto, Sabadell Asabys, and Mundi Ventures to join this significantly oversubscribed round. The company now has the financial strength it needs to continue on its  growth path and disrupt the field of promoting mental wellbeing and supporting symptom  management for mental illnesses, which due to the large unmet medical need and very high  prevalence is regarded as one of the large market opportunities in healthcare.” 

About Koa Health 

Koa Health is the only digital mental healthcare provider that offers integrated mental health solutions, from improving wellbeing to supporting treatment for a range of common mental disorders. Koa Health’s solutions are personalized services with proven user outcomes. Backed by investors including Telefónica, a consortium advised by Ancora Finance Group and  Wellington Partners Life Sciences, Koa Health leverages technology and research to enable people to change their behaviours with effective and accessible support that adapts to their unique circumstances. Headquartered in the Netherlands, Koa Health has operations in  Barcelona, the US and the UK. 

For more information, please visit www.koahealth.com 

Contact Information 

Press Office: [email protected]

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