Grow Therapy, a platform that connects patients with insurance-covered therapists and psychiatrists, has reached a $3 billion valuation after raising $150 million in a Series D round led by existing investors TCV and Goldman Sachs Alternatives’ growth equity business. The company said it plans to announce the financing on Tuesday.
What’s driving the jump in valuation of Grow Therapy?
In an interview, CEO Jake Cooper said Grow Therapy is now generating more than $1 billion in annual revenue a scale that stands out in a market where many digital health firms are still chasing predictable margins.
Founded in 2020, Grow Therapy’s model brings together independent therapists and psychiatrists with patients for in-person and virtual visits, while the company handles administrative work such as insurance credentialing and billing . Grow Therapy says 220 million people can access its services covered by insurance.
Who joined the round?
Alongside the lead investors, Menlo Ventures and BCI joined as new backers. Existing investors mentioned include Sequoia, SignalFire, and Transformation Capital.
Grow Therapy has raised $328 million to date, and its previous funding round was in April 2024.
Expansion plan: employers and primary care
Grow Therapy is widening its playbook beyond its current approach, moving into deals with employers and working with primary care providers via health systems’ group practices, Cooper said.
TCV founding general partner Jay Hoag, who sits on Grow Therapy’s board, framed the push as making therapy easier to find wherever patients already are: “It’s an expansion of the remit to make mental health therapy available wherever the consumer is residing,” he said.
A crowded field is reshuffling
The timing matters. The mental health startup market is going through what the report describes as a competitive reshuffling, with similar platforms raising significant capital. The story points to Headway and Alma as examples , and notes that Alma is set to be acquired by employer-focused Spring Health, as the companies said in January.
It also highlights expansion into mental health by adjacent players, including physical therapy provider Sword Health.
AI push: documentation relief and a patient-facing app
Grow Therapy is also leaning hard into artificial intelligence. The company acquired AI scribe Tenor earlier this year to reduce providers’ clinical documentation burden . In January, it launched its first patient-facing app, including features such as AI-assisted journaling between therapy sessions.
Cooper said Grow Therapy plans to use the new capital to support the employer and primary-care expansions and to continue building out its technology. Longer term, he also pointed to potential uses of AI scribe data to surface clinical insights.
Profitability and IPO plans
Grow Therapy reached profitability in 2023 . Cooper declined to say whether the company has completed any secondary transactions or employee tenders.
On a public listing, he signaled no urgency: an IPO is “really not a focus,” he said, adding that the company is seeing continued support in private markets.
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