Telecommunications firm Telefónica has spun off Netherlands-based mental health support provider Koa Health with $16.5m in series A funding.
Investment manager Ancora Finance Group and venture capital firm Wellington Partners co-led the financing, which makes up the first close of a series A round with a €30m ($35.6m) target. Both investors have also taken board seats at the company.
Koa offers digital support for a range of mental health issues and disorders. Its four initial products include Foundations, an app that helps companies support employees through specialised modules that promote healthy mental behaviour.
Mindset provides support for users dealing with anxiety and depression and Perspectives combines clinically validated CBT therapy with app-based personal support, while Foresight applies artificial intelligence to a predictive mental health forecasting system.
The company evolved from Alpha, the Telefónica innovation subsidiary established in 2016 to work on long-shot innovative technology, and carries on work conducted by its Alpha Health branch. It will put the funding into research and development work including clinical trials.
David del Val, Telefónica’s director of core innovation, said: “It is a proud moment for Telefónica, as Alpha Health graduates from a moonshot project in our innovation facility to an independent company with a proven business model.
“Telefónica will continue to be part of the story as Koa Health grows its offering, providing ongoing support as a shareholder, partner and customer.
“Mental healthcare remains one of the biggest challenges we face globally. The time is right for Koa Health to become independent, so it can continue to scale and grow to meet the increasing demand for digital mental healthcare.”
