Behavioral Health Technology

Growth in the Behavioral Health Technology industry was sparked by the complex challenges of the Covid-19 pandemic, necessitating the development of new technologies to improve the accessibility of care. The cost of treating an individual with a behavioral health diagnosis is 3.5 times that of treating one without. Today, attention has shifted toward enhancing the quality of patientcare while retaining the accessibility necessary to keep treatment convenient for patients and providers alike.

The market trend of the expansion of various telehealth and mobile applications remains critical today, as 64% of counties in the US have a shortage of mental health providers. AI has also emerged as a significant trend in behavioral health technology, offering various capabilities that contribute to efficiency, as well as delivering proven therapies like cognitive behavioral therapy (CBT)when healthcare professionals are unavailable.

Behavioral health technology M&A activity doubled in 2021 from its recent pre-pandemic high, while private placement activity saw a similar surge, nearly doubling for two consecutive years in 2020 and 2021.

With over 240 companies identified in AGC's behavioral health technology landscape, this industry is growing rapidly with emerging startups driving disruption and established public/unicorn giants vying for dominance in a highly competitive ecosystem where the "winner takes most."