In a significant development for the digital mental health and well-being landscape, Kooth, a pioneering startup, has secured a substantial £10 million investment in an oversubscribed funding round. This funding infusion, with £3 million contributed by BGF, a renowned growth capital investor in the UK and Ireland, known for supporting ventures like TidalSense and Entia, marks a pivotal moment for Kooth. The primary objective of this investment is to reinforce platform enhancements and drive expansion efforts across the United States. Kooth is rapidly assembling its US team to support its Californian contract and has ambitious plans to extend its reach to additional states in the near future.
Kooth's recent funding success rides on the back of BGF's, having already injected over £50 million into UK-quoted companies this year. Simon Blackaby, an investor at BGF, expressed confidence in Kooth's potential, stating, "Kooth is a prime example of a high-quality business with a proven model, substantial recurring revenue, and newfound international growth prospects. We believe in the management team's capacity to elevate the business to a whole new scale, especially following the recent contract win in the US, which underscores Kooth's expertise and credibility in its domain. This achievement is exceptional for a UK-based business driven by a profound purpose, and we are thrilled to be a part of its ongoing expansion."
Tim Barker, CEO of Kooth, welcomed BGF's support, recognizing it as a significant milestone for the company. He commented, "With BGF's backing, alongside their extensive network and assistance, we are poised to continue constructing a world-leading platform for young people. The increased traction in our US platform positions Kooth favorably for sustained international growth."
Paul Stevens, Head of Quoted Investments at BGF, added, "Kooth embodies the kind of publicly listed SMEs we are eager to support — those that have demonstrated impressive strides in recent years and now aspire to achieve substantial scale, both domestically and internationally."
Founded by Elaine Bousfield in 2001 in London, Kooth has carved a niche by providing an inclusive digital space for mental health care. The Kooth platform, licensed to the NHS, local authorities, charities, and businesses, extends its reach to over 60% of children and young people in the UK. This digital mental health solution has evolved into a beacon of hope for those seeking accessible and effective support.
Kooth's investment journey gains significant momentum following its transformative contract win with the California Department of Health Care Services. Valued at $188 million over the next four years, this partnership aims to deliver digital mental health care to a substantial portion of individuals aged 10 to 25, firmly establishing Kooth as a global leader in the realm of digital well-being.
Kooth's latest funding triumph not only underscores the critical importance of accessible digital mental health services but also reaffirms the company's commitment to expanding its reach and impact on a global scale.