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Neurotech & mental health

The brains behind society’s search for healthier minds

Last updated: 3 Oct 2024

Market 101

While discussing deal-sourcing strategies at Italian Tech Week in late September, Alessandro Luciano, vice president at VC firm Insight Partners, used his lead investment in Uno Bravo — one of Europe’s largest digital mental health platforms — as an example of market gaps being filled at a rapid pace. “We had invested in a couple of companies that did really well in the US [Calm, Alma] and when I looked at Europe I saw the same situation [on the demand side], but there were basically no providers,” he says. Things have picked up for the better since then, partly thanks to growth cheques from international investors.

Today, the neurotech and mental health scene is taking steps up the money ladder. On the back of broken stigmas and social acceptance, demand for mental health solutions has risen consistently over the past few years (as has users’ willingness to pay), and scientific discovery has advanced in equal measure to tackle the treatment of more than 600 neurological disorders affecting over 60% of Europeans.

But neurotech and mental health live by radically different monetisation strategies. The former follows a drug discovery and commercialisation model, while the latter is a bundle of B2B and B2C software applications to serve patients at scale, which may be harder to sustain in the long run. R&D spending isn’t the same, and neither are revenue margins or the sizes of addressable markets, but they both battle the same issue: being the largest contributor to disability-adjusted life years (DALY) of Europe’s 450m people.

Early stage market map

Key facts

84m

estimated number of Europeans suffering from mental health problems (one in six people)

€600bn

the estimated yearly economic burden of mental ill health

10k

patients per neurologist in Europe

Trends to watch

  1. B2C, B2B: somewhere in between?

    Digital mental health solutions have historically targeted B2C users, addressing the individual need for therapy and related treatments.

    But mental health is increasingly less of a nice-to-have and more of a must-have in employees’ benefits packages. Employers are increasingly considering companies with dedicated B2B platforms to add to their benefits.

    Business models that appeal to both businesses and individuals will get a headstart on revenue to further develop their product.

  2. AI this, AI that: AI yes

    OpenAI’s Sam Altman has always been very vocal about scientific discovery being the single most exciting use case of AI, which largely applies to neuroscience.

    Neurological trials are notoriously restricted when it comes to human subject research. Many trial requests still take a long time to be assessed with little assurance of success, while startups burn runways and lose equity in the process.

    Targeted AI-based diagnostics and therapy based on larger datasets — including synthetic ones — will likely be a key competitive advantage for neurotech startups in the coming years, if they can uphold the EU’s strict regulatory standards.

  3. Between treatment and diagnostics

    Neurological disorders are the leading cause of disability-adjusted life years (DALY) globally, with a higher incidence — and an equally larger burden on healthcare budgets — among the elderly population.

    With the average life expectancy now breaking into the 80s (a 10-year jump since 1960), neurotechs are looking to optimise early-stage detection of typically late-onset diseases such as Alzheimer’s and Parkinson’s.

Startups tracked by Sifted

Sifted take

Neurotech and mental health are difficult to master, and that won’t change while people’s brains are on the line. The subsector is still some way off reaching maturity compared to other healthtech areas, as scattered funding has ended up in the pockets of a few key startups, and megarounds mostly steer clear of experimental research — a trend that’s widely shared among European investors. Yet the human brain is an invaluable asset, and understanding it would generate highly sought-after and impactful results on everyday lives. Neurotech will need some big wins — scientifically and commercially — to make this evident, in order to bring more money onboard and to drill further into our psyches.

Rising stars

Neuroclues

Neurotech

Assessments & diagnostics

Total funding

€11,700,000

Ottignies-Louvain-la-Neuve, Belgium
2020

Eye-tracking tech that helps to identify neurological diseases years before symptoms are visible.

Round

Seed

Valuation

Undisclosed

Date

2024

Size

€5,000,000

machineMD

Mental health

Extended reality solutions

Total funding

€4,740,000

Bern, Switzerland
2019

This company has developed earbuds that capture data over a long period of time, which improves tThe company has developed what it calls a world-first: a high-tech VR headset with proprietary software. The device uses data from high-speed infrared eye tracking to generate reports on potential neurological disorders. he detection of neurological abnormalities and sleep disorders.

Round

Grant

Valuation

Undisclosed

Date

2024

Size

€3,400,000

Early stage startups to watch

A:head bio

Vienna, Austria
2019
 Early VC

€1m

-

-

Adamant Health

Kuopio, Finland
2020
 Seed

€2.7m

€2.2m

-

Akrivia Health

Oxford, United Kingdom
2019
 Grant

€830k

€410k

€27.5m

Alena

London, United Kingdom
2019
 Seed

€3.2m

€2.5m

-

AlphaBeats

Eindhoven, Netherlands
2019
 Seed

€1.5m

€1.5m

-

Amber Therapeutics

London, United Kingdom
2021
 Series A

€92.2m

€90.9m

-

AstronauTx

Reading, United Kingdom
2019
 Series A

€65.4m

€57.6m

-

Augmentive

London, United Kingdom
2020
 Seed

€1.7m

€590k

-

AviadoBio

London, United Kingdom
2019
 Series A

€87.1m

€72.7m

-

Bmind

Turin, Italy
2023
 Seed

€10k

€10k

-

Bottneuro AG

Switzerland
2021
 Grant

€130k

-

-

BrainHero

Vienna, Austria
2018
 Grant

€4.1m

€2.5m

-

Braintale

Strasbourg, France
2018
 Early VC

€5.5m

€4.5m

-

BrainZell

Värmdö kommun, Sweden
2020
 Seed

€1.4m

€1.4m

-

Callyope

Paris, France
2023
 Seed

€2.2m

€4.2m

-

CAPRI MEDICAL

Dublin, Ireland
2018
 Early VC

€5.8m

€2.8m

-

CereGate

Munich, Germany
2019
 Early VC

-

-

-

Clare&me

Berlin, Germany
2021
 Seed

€4.9m

€3.7m

-

Clerkenwell Health

London, United Kingdom
2020
 Seed

€2.5m

€2.5m

-

Din Psykolog

Stockholms kommun, Sweden
2019
 Early VC

€2.7m

€2.6m

-

Elona Health

Düsseldorf, Germany
2021
 Seed

€90k

-

-

Fede Test

Milan, Italy
2020
 Seed

€800k

€1m

-

Fettle.

Dublin, Ireland
2020
 Seed

€730k

€500k

-

Five Lives

London, United Kingdom
2019
 Seed

€3.9m

€1.3m

-

Gate2brain

Barcelona, Spain
2020
 Grant

€3.2m

€2.5m

-

Healper

Copenhagen, Denmark
2019
 Seed

€400k

€400k

-

HearMe.pl

Warsaw, Poland
2020
 Seed

€1.1m

€450k

-

Hedepy

Prague, Czech Republic
2020
 Seed

€5.5m

€1.8m

-

Heltia

Istanbul, Turkey
2022
 Seed

€4.9m

€4.3m

-

Hemi

Frederiksberg, Denmark
2023
 Pre-seed

€2.1m

€2.1m

-

Hiwell

Istanbul, Turkey
2019
 Seed

€4.5m

€3.2m

€25.9m

IAMA Therapeutics

Genoa, Italy
2021
 Early VC

€8m

€8m

-

Inrobics (NaoTherapist)

Leganés, Spain
2020
 Seed

€420k

€350k

-

Koa Health

Barcelona, Spain
2020
 Series A

€30m

€15.9m

-

Kyan Health

Zurich, Switzerland
2021
 Seed

€1.3m

€1.3m

€7.5m

Likeminded

Berlin, Germany
2020
 Seed

€11m

€1.5m

-

machineMD

Bern, Switzerland
2019
 Grant

€4.7m

€3.4m

-

mag4health

Grenoble, France
2021
 Early VC

€6.9m

€5.3m

-

MEandMine

Kristiansand, Norway
2019
 Early VC

€6m

€4.1m

-

Meela

Göteborgs Stad, Sweden
2021
 Seed

€3.8m

€2.6m

-

Mindable Health

Berlin, Germany
2019
 Seed

€1m

-

-

Mindgram

Warsaw, Poland
2021
 Seed

€11.4m

€2.5m

-

MindLabs

London, United Kingdom
2020
 Seed

€4.7m

€3m

€15m

Mindler

Stockholms kommun, Sweden
2018
 Early VC

€12.9m

-

-

Mindly

Kyiv, Ukraine
2021
 Seed

€1.9m

€1.8m

-

Mindsurance

Berlin, Germany
2020
 Seed

€1.1m

-

-

Moka.care

Paris, France
2019
 Series A

€17.5m

€15m

-

Moovd

Hengelo, Netherlands
2020
 Seed

€1m

€1m

-

Muna Therapeutics

Copenhagen, Denmark
2020
 Grant

€70.8m

€4.5m

-

Naox Technologies

Paris, France
2018
 Series A

€4.3m

€4.3m

-

NeuroBell

Cork, Ireland
2021
 Seed

€2.8m

€2.1m

-

NeuroClues

Ottignies-Louvain-la-Neuve, Belgium
2020
 Seed

€11.7m

€5m

-

Neurosoft Bioelectronics

Geneva, Switzerland
2019
 Grant

€3.1m

€2.1m

-

Neurosterix

Geneva, Switzerland
2024
 Series A

€58m

€57.3m

-

nilo health

Berlin, Germany
2020
 Seed

€8m

€8m

-

Nordic Brain tech

Oslo, Norway
2019
 Early VC

€1.8m

€1.8m

-

nyra health (Formerly myReha)

Vienna, Austria
2020
 Seed

€6.7m

€4.5m

-

Okinme

The Hague, Netherlands
2022
 Seed

€1m

€1m

-

Oliva Health

London, United Kingdom
2020
 Early VC

€12.7m

€5m

-

OpenUp

Amsterdam, The Netherlands
2020
 Series A

€28m

€25m

€75m

QV Bioelectronics

Manchester, United Kingdom
2018
 Grant

€5.4m

€1m

-

RebrAIn

Pessac, France
2021
 Seed

€3.7m

€3.7m

-

Reyedar

Groningen, Netherlands
2019
 Early VC

€3.3m

€3m

-

Samphire Neuroscience

London, United Kingdom
2021
 Seed

€2.5m

€2.1m

-

Selfweller

Menderes, Türkiye
2023
 Seed

€510k

€510k

-

Serenis Health

Milan, Milan
2021
 Seed

€6.5m

€5.5m

-

SOMAREALITY

Vienna, Austria
2019
 Seed

€3m

€3m

-

Strolll

Stafford, United Kingdom
2019
 Seed

€4m

€3m

-

Syndi

London, United Kingdom
2020
 Seed

€2.5m

€2m

-

Synendos Therapeutics

Basel, Switzerland
2019
 Series A

€20.2m

€3.3m

-

Syntropic

Vienna, Austria
2023
 Seed

€1m

€1m

-

teale

Paris, France
2021
 Series A

€12m

€10m

-

Teitur Trophics

Aarhus, Denmark
2020
 Series A

€28m

€28m

-

Terappin

Istanbul, Türkiye
2020
 Angel

€1m

€1m

-

Thymia

London, United Kingdom
2020

-

-

-

-

Ulysses Neuroscience

Dublin, Ireland
2019
 Seed

€600k

€600k

-

UNOBRAVO s.r.l. Società Benefit

Milan, Italy
2019
 Series A

€24m

€17m

-

Wellbee

Warsaw, Poland
2020
 Early VC

€2m

€910k

-

YLAH

Bern, Switzerland
2022
 Grant

€500k

€500k

-

Europe’s success stories

Who early stage startups are up against

MindMaze

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

Lausanne-based company, which has raised $338m according to Dealroom, offers an immersive gaming experience to patients recovering from brain injuries, such as stroke. One MindMaze game, for example, sees patients take control of an animated dolphin called Bandit, which catches fish and explores the ocean.

Nextmind

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

Paris-based Nextmind developed a headband that could use brain signals to move images on a computer. The company was acquired by Silicon Valley messaging service Snap for an undisclosed sum in 2022.

Carthera

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

The Lyon-based medtech has raised $79.6m from investors to date for its ultrasound-based devices that can treat a wide range of severe brain disorders.

Sources

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