Headspace Health, a digital mental health “unicorn,” closed a $105 million senior debt facility Wednesday.
Headspace Health CEO Russell Glass said in a written statement the company began conversations with Oxford Finance, a firm that provides loans to public and private life science and healthcare companies, in January. He said the company looked for ways to “proactively reduce risk given the current economic landscape.”
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The funding announcement comes weeks after the company laid off 181 employees, or 15% of its staff, in June. Glass said the staff reductions were not a condition of the capital from Oxford Finance, and it is not intended to be used for day-to-day business operations. Rather, the financing provided Headspace flexibility and reduced risk, he said.
The company also cut 50 employees in December.
Glass didn’t outline specific merger or acquisition plans.
“In terms of what we’re hearing from the market, our customers, health plan partners, and members are asking for continued investment in our enhanced enterprise offerings, like in-person clinical care, more robust [substance use disorder] support, and our next-generation [Employee Assistance Program]. So, we’ll be looking at those areas in the coming months as potential areas for deeper investment,” Glass said.
Glass formerly served as CEO of Ginger, an app-based mental health company that in August 2021 merged with Headspace to form Headspace Health. The deal valued the combined entity at $3 billion at the time.