The digital era has changed dramatically the way in which people live their lives. As a consequence, mental health issues have become more prevalent in the society over the last twenty years, and that fact has not gone unnoticed for the new tech startups. Apps devoted to help users to cope with hectic lifestyles, which frequently make them feel anxious and stressed, are turning demand into profitable business models.
Growth is expected to come mostly from an increase in individual users, but also from contracts with the public healthcare sector and private companies. The lack of resources in the public healthcare system to satisfy the increasing needs leaves an unsatisfied demand for these digital mental health startups to thrive on. Also, the growing popularity of meditation and other mindfulness-base techniques is attracting both individual users suffering from the stress and anxiety and private companies, many of which are targeting the negative impact that mental health issues has on productivity.
Digitalizing mental health has changed the business model that predominates in the sector. Far from the pay-per-service model of clinical practitioners, emerging tech start-ups are implementing subscription models resembling those used by streaming services. To keep those subscribers lengthy periods of time, companies are utilizing AI tech to tailor their services to each users as well as developing new services that could appeal attract more users. Therefore, with the amount of data that a subscription model provides from the end user, and the possibilities to develop new and improved services that AI offers, the digital mental health sector is set for success.