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A new £20 million (approximately NZ$43.8 million) fund is being established to boost UK mental health startups. Spearheaded by KHP Ventures, the funding aims to address the gap between the growing number of mental health startups and their limited connections to clinical trials and healthcare systems.
Named Innovations in Mental Health (IMH) Fund, it will focus on accelerating startups tackling depression, anxiety, and psychosis. Wellcome, a charitable foundation, has committed £8 million (approximately NZ$17.5 million) as the anchor investor.
Set to close in early 2025, the fund will invest between £250,000 to £1 million in selected startups. KHP Ventures, a collaboration between prominent UK healthcare institutions, will manage the fund with support from the South London and Maudsley NHS Foundation Trust.
The initiative includes a 12-week immersion programme for startups worldwide, provided they focus on developing solutions for the UK market. Successful startups will receive comprehensive support, including assistance with clinical trials, access to patient data, and opportunities to test products in real-world settings.
This fund comes at a crucial time, as the demand for mental health services in the UK has surged. NHS mental health services saw a nearly 40% increase in contacts over the past year, including over a million children.
“We felt that there was a need for a thematic fund in mental health. There are a lot of startups in this space and lots of technology potential in this space, but there wasn’t the right capital flowing to it,” said Dr. Pooja Sikka, founding general partner of the IMH Fund.
“Our anchor investor, the Wellcome Trust, is trying to raise the bar on scaling mental health, and in particular, a thesis on digital mental health,” she added.
Sikka also highlighted the worsening mental health situation across all societal segments and emphasised the fund’s goal to create a specific capital pool with appropriate startup support.
“Millions of people are held back by mental health problems. There is a pressing need for new and improved ways that we can help them live the lives they wish to lead,” stated Elena Netsi, research lead in digital mental health at Wellcome.