Kooth, a youth digital mental health and well-being startup, has received £10 million in an oversubscribed investment round. Of this, £3 million came from BGF, one of the largest and most experienced growth capital investors in the UK and Ireland, which backed TidalSense and Entia.
The funding is aimed at fortifying general platform enhancements and expansion efforts in the United States. It is now in the process of building out its US team to support the Californian contract, amid plans to roll out to additional states in the near future.
The investment in Kooth follows strong momentum for BGF which has surpassed £50 million of new investment into UK-quoted companies so far this year.
Simon Blackaby, an investor at BGF, commented: “Kooth is a great example of a high-quality business with a proven business model, a significant recurring revenue stream, and now international growth potential. We have a strong conviction in the management team’s ability to execute the step-change in the scale of the business following the recent US contract win, which is a clear demonstration of Kooth’s credibility and expertise in its field. This is an exceptional achievement for a UK-based business that has purpose at its core, and we’re delighted to be playing a part in its continued expansion.”
Tim Barker, CEO of Kooth, commented: “We’re pleased to gain the backing of BGF on our share register. In addition to their funding, BGF’s network and support will give us the opportunity to continue building a world-leading platform for young people. With further traction now seen in the US platform, Kooth is well positioned to continue its international growth.”
Paul Stevens, head of quoted investments at BGF, said: “Kooth is a great example of the type of publicly listed SME that we are keen to support – one that has delivered strong progress over recent years and is now looking to deliver significant scale both in the UK and internationally.”
Digital mental well-being for all
Founded by Elaine Bousfield in 2001 in London, Kooth provides a welcoming space for digital mental health care, available to all. Licensed to the NHS, local authorities, charities and businesses, the Kooth platform is available to more than 60% of children and young people in the country.
This investment in Kooth follows the company’s recent success at securing a transformational contract with the California Department of Health Care Services, worth $188 million over the next four years. It aims to provide digital mental health care to over 60% of individuals aged 10 to 25.