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Funding

Hypnotherapy medtech raises $17.8 million Series A

- March 21, 2023 2 MIN READ
Alex and Chris Naoumidis
Mindset Health cofounders Alex and Chris Naoumidis
A Melbourne medtech building hypnotherapy-based apps so people can self-manage a range of illnesses has raised a US$12 million (A$17.8m) in a Series A.

The round for Mindset Health was led by King River Capital, supported by Andrew Forrest’s Tattarange VC health fund Tenmile, Perennial Partners, impact funds Giant Leap and Alberts, Yard Ventures, WordPress founder Matt Mullenweg, SendBird’s John Kim, Peter Cameron, James Beshara, Linktree cofounders Alex and Anthony Zaccaria, and Nick Humphreys, Sandy Kory, Banana Capital, Sofie Quidenus-Wahlforss, Fifty Years, Romain Brabant, Mr Yum founders Kim Teo and Adrian Osman,, George Hartley and Eriko Suzuki.

The digital health company previously raised A$6.5 million in a Seed round in 2021.

Its app helps people with chronic conditions learn to manage their health via using hypnotherapy based on advice from health specialists and clinical research. Nearly two years on from the medtech startup hoping to scale its users ten-fold to 100,000 a month, it now has more than 30,000 people using the apps to assist with their health conditions.

Mindset Health currently has three hypnotherapy apps to assist with the medically-diagnosed conditions irritable bowel syndrome, menopause and stopping smoking. Its biggest market is the US, accounting for 38% of users, followed by Australia (19%), and United Kingdom (15%).

Cofounder Alex Naoumidis said the fresh capital will support the development of the company’s hypnotherapy apps, including broadening channels-to-market; scale up the team; and launch new apps for conditions including anxiety and depression, sleep and chronic pain.

Mindset Health is also partnering with Monash University to validate its programs and enhance them with additional features and personalisation.

“The global demand for our hypnotherapy programs – driven by healthcare practitioners, who recognise their effectiveness in supporting patients and recommend their use – has proven our thesis and demonstrated the deep market appetite for easy to use solutions that can help people manage and live well with underserved health conditions,” he said.

“This latest financing will support us to continue to meet that demand and in new areas with a broader product offering, as well as funding additional research programs instrumental to producing high-quality digital programs backed by clinical rigour.”

King River Capital cofounder and partner Chris Barter said is helping people globally take control of their health and successfully address a range of chronic conditions.

“By automating hypnosis-based therapies, Mindset Health is utilising the very qualities that have made traditional approaches so successful – efficient scalability, on-demand availability, and clinical rigour – without the side effects, or the billion-dollar R&D price tag,” he said.

 

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