Headspace gets a haircut

Sword Health will acquire mental health app Headspace for between $200 and $300 million, according to Axios. That’s a wild drop in valuation for Headspace, which, as I reported back in 2021, was valued at $3 billion following a merger with mental health platform Ginger. Sword Health, which started as a musculoskeletal platform and has since expanded to include women's, cardiometabolic, and mental health, was last valued at $4 billion. 

The question of course is: what does all this mean for the telemental health space?

Telemental health has had a wild ride over the last six years, from a niche tool to a mainstream mainstay for therapists since the pandemic. In 2021, companies were eager to set their employees up with tech-supported mental health services as a way to woo them back to work. But the economic landscape has shifted substantially since then and it’s not clear that providing a mental health platform to employees holds the same value it once did.

There is also a question about how much value a technological platform adds to the practice of therapy. Second Opinion will be digging into the space next week, so stay tuned.  We'd love your thoughts on what's going on, so don't hesitate to reach out to me or Christina.

Now, onto the news.

—Ruth