flipping into tech

Houston superstar Simone Biles snags C-suite position in SoftBank-backed company

Houston's favorite gymnast is the chief impact officer on a California-based tech company that's raised $462M. Photo via getcerebral.com

Less than two months after Olympic gymnastics star Simone Biles of Spring joined mental health startup Cerebral as chief impact officer, the company has raised $300 million in venture capital — a sum that vaulted it to a valuation of $4.8 billion.

San Francisco-based Cerebral announced the $300 million round December 8. SoftBank Vision Fund 2 led the Series C round, with participation from Prysm Capital, Access Industries, WestCap Group, and ARTIS Ventures.

Launched in January 2020, Cerebral has raised a total of $462 million from investors, including an undisclosed amount from Biles.

Biles, a 4-foot, 8-inch gymnastics powerhouse, has won 32 Olympic and World Championship medals. But it was her off-the-mat moves at this year’s Summer Olympics in Tokyo that drew worldwide attention. Biles contended in just one event in Tokyo after withdrawing from all other competition to concentrate on her mental health.

Two months after the Olympics, Biles agreed to become Cerebral’s chief impact officer, serving as the face of the brand.

Cerebral was an official sponsor of Biles’ Gold Over America Tour, which took place from September to November, and is an official sponsor of the 2022 Simone Biles International Invitational, a gymnastics competition that will be held January 27-30 at Houston’s George R. Brown Convention Center. The Spring-based World Champions Centre, Biles’ home gym, stages the invitational.

“Mental health is just as important as physical health, but for far too long the stigma of mental health has prevented too many people from seeking help,” Biles says in a Cerebral news release. “I have my own challenges with mental health, and therapy has been very empowering for me as I try to be the best person that I can be. I believe everyone should have access to mental health resources, and Cerebral gives me the ability to personalize my mental health care experience.”

Cerebral bills itself as a one-stop online shop for mental health care and wellness. The company offers counseling, therapy, and medication delivery and management online for conditions such as depression, anxiety, and substance abuse.

Cerebral boasts that the $300 million round makes it the world’s largest and fastest-growing online provider of mental health services.

“Cerebral’s growth in the last year shows just how much the world needs affordable and accessible mental health care. It’s important to us that we not only improve access to mental health care through a convenient platform and affordable plans, but to also improve patient outcomes,” says Kyle Robertson, co-founder and CEO of Cerebral.

The pandemic ramped up the use of telehealth services, including those delivered by Cerebral. According to Fortune Business Insights, the U.S. market for behavioral health grew 11.3 percent in 2020, with pandemic-fueled mental health concerns helping drive up demand. Fortune Business Insights estimates the U.S. market will expand from $77.62 billion in 2021 to $99.4 billion in 2028.

Globally, the mental health market is projected to jump from $383.31 billion in 2020 to $537.97 billion by 2030, according to Allied Market Research.

Digital health startups like Cerebral are benefiting from the mushrooming market for mental health. Rock Health, an investment and advisory firm, says that through the first nine months of 2021, investors pumped $21.3 billion into U.S. digital health startups. That compares with $14.6 billion in all of 2020.

Cerebral says its $300 million cash infusion will enable it to undertake a global expansion, as well develop strategic partnerships and explore M&A opportunities. Today, Cerebral comprises a network of over 2,300 clinicians practicing in all 50 states.

“Roughly half of the American population is affected by mental health issues. However, obstacles like cost, limited provider availability, and fear of judgment remain in the way of getting the treatment they need,” says Priya Saiprasad, a partner at SoftBank Investment Advisers, which manages SoftBank’s venture capital funds.

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Building Houston

 
 

Houston-based Liongard has fresh funding to work with. Photo via Getty Images

A Houston software company has announced its latest funding.

Liongard, an IT software provider, has raised an additional $10 million led by Updata Partners with contribution from TDF Ventures — both existing investors in the company. The funding, according to a news release, will go toward providing the best customer service for Liongard's growing customer base.

The technology is providing managed service providers, or MSPs, improved visibility across the IT stack and an optimized user experience.

“Since working with our first MSP partners, we’ve seen time and again the power of visibility into IT data, reducing the time they spend researching customer issues and allowing them to respond faster than their peers,” says Joe Alapat, CEO and co-founder of Liongard, in the release. “This investment enables us to continue to achieve our vision of delivering visibility into each element of the IT stack.”

The company has about 2,000 partners in support of more than 60,000 end customers. And has been recognized as a top employer by Forbes and Inc. magazine earlier this year.

“We are excited to deepen our commitment with Liongard,“ says Carter Griffin, general partner at Updata, in the release. “With its leading data platform for MSPs we expect continued fast-paced growth.”

Liongard's last funding round was in May of 2020 and was a $17 million series B round. Both Updata Partners and TDF ventures were involved in that round. The company's total funding now sits at over $30 million.

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