Picking the right partner, which lives up to its sales blurb and can demonstrate robust ROI, was one of the hot topics discussed at this year’s Watercooler Event, especially in the Leader’s Club.
As budgets tighten, but employee demand for mental health support stays high, leaders are under pressure to make smart, impactful choices.
In this article, venture capitalist Danish Munir, Founding Partner at GreyMatter Capital, shares his view on how the corporate mental health market is evolving – and what decision-makers need to consider when selecting wellbeing partners.
Having spent over a decade investing in mental health startups, he shares a unique perspective on where the corporate wellbeing solutions market is heading – and how leaders can choose partners that will drive long-term value…
What inspired you to focus your investment career specifically on mental health and behavioural health startups?
My journey into mental health began 14 years ago after a family experience opened my eyes to the stigma and lack of access, both in Pakistan where I grew up, and here in the U.S.
Inspired to help, I co-founded a telepsychiatry company, Genoa Telepsychiatry, to serve underserved patients, believing technology could bridge the gap. Since then, I’ve been committed to finding practical solutions that make a real difference.
Can you cite any examples of mental health product innovations that you’ve seen make a real, measurable difference to employers?
Yes, of course. There are currently two companies in our portfolio that are excelling in the corporate mental health space.
Firstly, Pelago Health is using a virtual substance-use care solution. It helps employers tackle sensitive addiction issues, like alcohol and opioid abuse, with added reassurance of confidentiality, which makes employees more likely to access it.
With a 62% reduction in alcohol use in just 30 days, it’s a strong example of a partner delivering measurable outcomes on a workplace taboo.
Secondly, Kyan Health. It offers a modern alternative to legacy EAPs, with AI-driven support and employer dashboards. This kind of transparency helps leaders in the Health and Wellbeing space make wellbeing visible and measurable at leadership level.
How likely is it that we will continue to see innovation prioritised in this market, and that top tech entrepreneurs will continue to take an interest in it?
I’m confident there will be many other innovations like Pelago Health and Kyan Heath hitting the market because, from an investor’s perspective, the mental health sector – particularly corporate mental health – remains remarkably resilient, even as other health and wellness categories have faced headwinds.
Demand from employers is fuelling a steady stream of innovative startups, as organisations increasingly recognise the importance of supporting employee wellbeing.
Despite broader market volatility, mental health continues to attract strong interest, and its share of digital health investment in the U.S. has grown year over year.
While competition is rising, the core challenges in corporate mental health are far from solved, leaving significant opportunities for new entrants to create meaningful impact and value.
What trends are you seeing from employers now that are affecting the types of Health and Wellbeing innovations hitting the market?
Employers are demanding more proof of value and more integrated, evidence-based solutions. This is pushing partners to provide more support to employers to prove the business case to the c-suite.
While the overall trend is positive, the corporate mental health space is certainly facing some headwinds as well. During the pandemic, employers expanded mental health benefits and pushed for better access, but rising healthcare costs are now forcing them to rethink spending.
In the U.S., mental and physical health costs are often managed separately, so the full value of mental health programmes isn’t always recognised – these programmes are still seen as cost centres, not value drivers. As a result, employers are becoming more cost-conscious, seeking more explicit ROI from their mental health offerings, and streamlining benefits.
These dynamics are making it more challenging for providers and innovators to gain traction, even as the need for effective corporate mental health support continues to grow.
Given these challenges, what guidance can you offer on selecting suppliers who are likely to remain viable in the long term?
At a time like this, we look for companies and founders that have a deep understanding of their target customers, know how to navigate choppy waters and build resilient teams. As always, in venture, people are everything.
For leaders, this means that more health and wellbeing solutions are available – but knowing how to pick the right one is more important than ever.
How do you see the corporate mental health innovation landscape evolving in future?
There will be continued innovation, but also greater scrutiny. Employers and health plans alike are becoming more selective about what they fund.
We’re entering a phase of disciplined growth. Startups must show they can deliver outcomes at scale, and employers must be more strategic in choosing who they partner with.
The good news? This will likely drive up the overall quality of offerings in the space. The best solutions will be those that blend clinical rigour, user experience, and strong reporting – all things that align with the evolving priorities of leadership.
How do you measure success when it comes to investments in mental health and how can this apply to employers making decisions on wellbeing solutions?
The decisions of leaders sourcing wellbeing solutions for their workforces don’t just impact the wellbeing of their employees – they help shape the future of the mental health ecosystem.
Employers may not always realise it, but their company’s engagement can be a lifeline for their wellbeing partners. By actively involving their teams in consistent use of the solutions, and providing accurate reporting, they not only enhance the effectiveness of these solutions—they also help ensure the long-term viability and ongoing investment potential of these valued providers.
In a crowded market, leaders in this industry have more power than ever. By choosing the right partners, asking the right questions, and aligning mental health strategy with broader business goals, they can ensure wellbeing remains not just a benefit – but a competitive advantage.
That’s why I’m really excited about events like The REAL Summit: The Intersection of Finance & Mental Health coming up next week in London. It’s an event which brings together expertise and fosters connections in this complex space and helps raise the bar of the overall mental health innovation landscape, including in corporate mental health.
Readers of this article are offered an exclusive discount to attend the 2-day REAL Summit for the price of one day. Simply book a one day pass & email justine@thereal.care to identify yourself saying you are requesting the MAD Media discount.
About the author
Danish Munir is a healthcare entrepreneur and investor. He is Founding Partner at GreyMatter Capital, a VC firm dedicated to advancing innovation in mental, behavioral and brain health.
Previously, Danish founded Genoa Telepsychiatry (formerly 1DocWay). He’s also worked at Microsoft and Lehman Brothers
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