Brightside Health, a virtual behavioral health startup, raised $50 million in Series B funding led by ACME Capital and Mousse Partners, Brightside CEO Brad Kittredge tells Axios exclusively.
Why it matters: Funds have been pouring into behavioral health, and there's no sign of the flood abating, with Brightside the latest example.
Details: Existing Brightside backers Bullpen Capital, Triventures and Trousdale Ventures also participated in the round, bringing Brightside's total funding to $75 million.
Context: Founded in 2017, San Francisco-based Brightside was online before the pandemic highlighted the shortage of mental health tools — something that initially presented challenges for its founders.
How it works: Brightside partners with payers and providers to offer its services on a reimbursable basis, and with employers and individuals.
Flashback: Before starting Brightside, Kittredge worked at consumer-focused companies including Jawbone and 23andMe, where he says he "had a front row seat" to the clash between Silicon Valley's hyper growth mentality and the need to move slowly in health care, he tells Axios.
Between the lines: While many digital health sectors are consolidating, industry observers and investors continue to see promise in niche mental health solutions, where there is a chance to offer highly personalized support to specific populations.
State of play: Competition in the sector is also driving a focus on outcomes, leading investors to become more selective in the startups they back, Aike Ho, a partner with ACME who led the investment in Brightside, tells Axios.

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