This year could bring a reckoning for mental health startups.
It's been three years since the mental health market surged to all-time highs. Behavioral health startups grabbed $5.1 billion in 2021, $3.3 billion more than any other clinical indication in healthcare that year, according to Rock Health.
Investor interest in mental health hasn't abated since then. But as customer acquisition costs surged and funding slumped, some startups have struggled to grow into sky-high valuations, especially in a now-crowded landscape.
Today's market is a mixed bag: large late-stage players preparing for public market debuts, early-stage companies grabbing funding for specialized behavioral healthcare, and a cluster of generalist midstage startups in between.
Analysts think more consolidation in mental health is inevitable this year as startups adapt to the new market realities and battle it out for continued growth.
Tom Cassels, senior advisor at Rock Health, said generalist mental health startups should be considering their options now, especially those struggling with patient retention or that aren't profitable.
"The test is, can you meet the new market expectations, and I'm confident that with everyone in the market, several will not," he said.
These are the 13 mental health startups most likely to go public, make acquisitions, or get bought in the next year, according to healthcare analysts.