Mental health has been stigmatised, considered taboo, and swept under the rug for years.
But there is now a change in how society perceives mental health and people are finally opening up about their experiences with mental illness. It is much-needed progress in a mission to improve mental health and help people seek the treatment they need.
Much of it is thanks to startups who are playing a significant role in driving this change.
There are several reasons why mental health is becoming more of a focus for startups.
For one, founders of these companies are often passionate about the issue because they or someone they know have struggled with mental illness.
Secondly, they also see a huge opportunity to address the mental health needs of millions of people.
According to WHO (World Health Organisation) European Region, 150M people live with a mental health condition, and only 1 in 3 people receive the care they need. This lack of treatment can lead to severe consequences, such as suicide.
Consequently, startups across the globe are developing new ways to provide mental health services, making them more accessible and affordable.
One such startup is the Amsterdam-based platform OpenUp.
Founded in 2019 by engineer and psychologist Gijs Coppens, the Amsterdam-based startup aims to make mental health accessible by reducing the barriers to health coaching and therapy.
Silicon Canals had the opportunity to speak with Gijs Coppens about his company, funding strategy, the challenges he’s faced, the importance of mental health in the workplace, and much more.
Coppens was candid about the challenges of being a startup CEO, his relationship with investors, and how he navigated through the funding process amid the looming recession. He also discussed the psychologist’s onboarding process and advised on taking care of mental health.
Do give it a read
Origin
Talking about the origin of OpenUp, Gijs Coppens says, “We first started with iPractice, which is set up within the more formal mental health care space.”
The data shared by Coppens reveals that 20 per cent of adults in Western Europe suffer from mental health symptoms, and 50 per cent of the population at least once in their life develop depressive disorders or anxiety disorders.
“Looking at mental health from this wider perspective, we realised the importance of being active in the preventative arena. If we wanted to provide a solution for a real societal challenge, we needed to do something different and create a guide for people towards mental health: OpenUp began with that idea,” he adds.
Coppens continues, “We aimed to become the trusted guide for mental health and provide advice on a vast range of issues, from sleep to work performance, from self-confidence to social relationships.”
Gijs Coppens founded OpenUp with Floris Rost van Tonningen, the founder of Hyves – a Dutch online social media platform with 10M members before Facebook entered the market.
“Our goal at OpenUp is to provide everyone with the opportunity to take on any mental challenge, no matter how small or complicated it may be. We believe that offering easy and direct access to psychologists allows people to prevent and tackle issues at an early stage,” he shares.
Challenges
OpenUp was primarily founded as a donation model, however, it didn’t take off as expected, states Coppens.
“We used the so-called business-to-consumer proposition, in which we asked for donations after our services had been used. However, on average, we received €2 per consultation, which was too little to build the company. With the pandemic coming up, we contacted many companies that were worried about their employees’ mental well-being. We then started collaborating with organisations, many of which are international, with ex-pats, tech companies, and scale-ups. At that stage, we decided to turn OpenUp into a subscription model with very affordable pricing,” he reveals.
Amidst all the challenges, the Amsterdam startup grew on an average of 300 per cent a year and aims to reach 500 per cent growth in the next 18 months.
“Another ongoing challenge is finding people aligned with our ambitious mission and can take on a performance challenge. Therefore, we need extraordinary professionals to get into this high rhythm,” he says.
Investor sentiment toward mental health startups
A report from CBInsights reveals that global mental health tech investment activity grew 139 per cent YoY from 2020 and reached a record $5.5B.
Coppens explains the investors’ sentiment towards mental health startups, “We saw well before the pandemic that significant investments were going on, for instance, in US-based startups like Ginger, Talkspace, or Spring Health. But, of course, the pandemic made it even more clear and explicit that mental health is a relevant theme.”
“It is clear that even people who had never experienced mental health challenges before are now affected in some way, either as managers or employees within the workplace or within the familiar environment. This was a big driving force for innovative solutions in mental health and coaching.”
Further, he disclosed that VCs are more inclined towards “Preventive care” when investing. To reiterate, preventive care in healthcare is defined as measures taken to prevent diseases rather than curing them or managing their symptoms.
“While clinical solutions have already been here for 50 years or longer, I think VCs would mainly be interested in the preventive arena because of its novelty and the possibilities that it offers to define, draw and design in this thriving setting,” he adds.
Regarding startups focused on mental health, some investors may have a stigma. However, Coppens clarified that this isn’t always the case.
He clarifies, “No, I don’t think there is a stigma among investors. We get inbound from investors every week, and they all recognise mental health as a big challenge that needs to be addressed. But, moreover, investors want to have a societal impact besides the financial aspects too.”
Funding: Choosing the investor
The Dutch medtech platform raised €15M in a Series A round of funding from Dutch investors Rubio Impact Ventures and Achmea Innovation Fund.
Talking about selecting the investors, Coppens says, “I think it is essential as an entrepreneur and management team that you have a good click with investors, not only professionally, but also on a personal level.”
He continues, “As a founder, you get to interact with lots of investors, but at a certain stage, you get more attracted by some investors, and you choose those who fit best. So it is always a process, like building relationships. Do you have an interest in seeing them again? And do they feel the same way? That’s how we move forward.”
According to Coppens, the management selected Rubio Impact Ventures, Achmea Innovation Fund, and Lexar Partners for the Series A round.
Additionally, the company included some informal investors like
- Floris (the founder of Hyves)
- David Vismans (the ex-chief product officer of Booking)
- Adriaan Nühn (the former chairman of Just Eat Takeaway)
- Noor van Boven (the former Chief People Officer of N26)
Funding: Why VC funding?
“We are very ambitious, and we have a big mission, therefore, VC funding fits the best to achieve this,” he notes.
Coppens also initially advised startups to raise funding from family, friends, or informal investors.
“This allows you to bring more clarity to your role and have some product market fit as well as some revenues before you start talking to VCs,” he adds.
Funding: Challenges
Dealing with raising funds for a startup is probably one of the biggest challenges an entrepreneur has to face.
Talking about it, Coppens comments, “There is often a dilemma between the business side of this process, such as the negotiation, and the need to develop a relationship. Building a business-type friendly relationship always requires some balance between giving and taking. I would call it a dance rather than a challenge – it is always important to be adjustable to get results.”
He adds, “Time is also very relevant in this process. You want to avoid getting in longer funding rounds because it slows you down in growth. So, in this dance, you must ensure both parties are flexible and can move fast.”
Coppens claims that OpenUp has enough runway to get around for 24 months.
“We are always open to it if we see a big opportunity to increase the pace of growth in a sustainable way,” he says.
How does OpenUp work?
OpenUp offers low-threshold access to psychological help via video sessions or chat. Through its online platform and technology, users can schedule a consultation and are connected with a qualified psychological professional.
At present, the platform has a team of 75 certified psychologists.
Explaining the psychologists’ onboarding process, Coppens says, “We adopt thorough screenings during selection, and we use role plays and intervision sessions to ensure we only recruit the most qualified professionals.”
He continues, “For core team members, we have an onboarding program for one whole week, during which we explain our way of working and the OpenUp framework. Moreover, all our psychologists have at least a master’s degree in Psychology.”
The platform also offers frequent training and support from seasoned experts to keep psychologists’ expertise up to date. In addition, over 550 companies in the European region provide their employees with free access to OpenUp’s platform.
Additionally, the platform includes courses, health checks, interventions, inspiring interviews, and talking to a psychologist 1-on-1 via video, phone, or chat.
Currently, psychologists offer sessions in 17 languages: English, Dutch, German, French, Arabic, Bosnian, Chinese (Mandarin), Italian, Croatian, Ukrainian, Polish, Portuguese, Russian, Serbian, Spanish, Turkish, and Flemish.
“We add new languages every quarter,” adds Coppens.
Future
OpenUp aims to become the number one mental health partner in Europe.
“We are the Dutch market leader and close to being the German market leader. As a first step, we launched in France, Spain, and the UK. But many more are on our list: within 18 months, we expect to serve 1M employees.”
How to improve their mental health and well-being?
“First of all, my advice would be to actively switch off from time to time and give your mind some rest. It is also important to be aware of your strengths and use them – but always surround yourself with supportive people who can help you and take over some of the tasks that deplete your energy levels. Lastly, remember to share your dilemma with your management team so that you can solve it together – this prevents entrepreneurial loneliness,” concludes Coppens.
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