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mentalport

Seed
Co-Investors: 1
Kaiserslautern, GER
Digital Health
Closing: October 2024

Summary: Reasons to invest

Growing Demand for Intelligent & Compliant Mental Health Solutions:
  • An all-in-one platform for managing mental health, combining compliance, AI-driven biofeedback coaching, and team resource management.
  • Key differentiators: psychosocial risk assessment, technical anonymization (non-traceable), and real-time AI interventions.
  • Based on Germany’s Occupational Health and Safety Act (§§5,6) and the EU Directive (§§89/391 EEC), with expectations that enforcement of these legal regulations will be increasingly scrutinized in the future.

 

Promising Development:
  • A two-year technological lead compared to competitors (assumed); highly adaptable and automated, allowing for rapid and easy scalability.
  • Rapid market validation with 12 paying customers within the first 7 weeks after launch and building a sales pipeline worth EUR 13M.

Personal comment

Problem

Most companies inadequately manage mental health, treating it as an optional benefit rather than a vital and legally binding component of value creation. This results in significant financial losses from mental health-related absences, low employee engagement, and non-compliance with legal requirements. Notably, many companies in 14 EU countries fail to meet the mandatory Psychosocial Risk Assessment (PRA) standards, leaving them vulnerable to substantial fines and operational inefficiencies.

Solution

Mentalport offers a comprehensive AI-powered software platform for holistic mental health management in companies. The solution includes a mobile app for employees that provides personalized and anonymous assessments of legally required psychosocial risk evaluations (PRA) and integrates mental health support through biofeedback and AI-driven coaching. For employers, it ensures real-time compliance with PRA regulations while offering tools to improve employee well-being and retention. The highly efficient and scalable platform is 90% more cost-effective and 15 times faster than traditional methods, delivering both legal compliance and actionable insights.

USP (Unique Selling Proposition)

Mentalport offers the first comprehensive solution that integrates regulatory compliance with mental health management at both the employee and employer levels. The platform not only ensures significant cost savings (an average of EUR 34K per 100 employees) and legal security, but also enhances employee well-being, making it an essential tool for companies looking to proactively manage mental health.

Business model

Monetization is achieved through fixed monthly subscription fees, charges for additional coaching sessions, and upselling via more detailed insights and enhanced services. The platform is designed for companies of all sizes, offering a user-friendly pricing model with a focus on scalability through a “land and expand” strategy.

Market

The solution can already be utilized by companies with as few as one employee, in full compliance with regulatory requirements. The figures provided are based on costs associated with absenteeism, employee turnover, performance losses, and compliance.

  • Germany (target market): Total addressable market (TAM) of EUR 31B (2023).
  • EU (expansion plan): Total addressable market (TAM) of EUR 731B (2023).

The digital health market is projected to experience a compound annual growth rate (CAGR) of 27.1% through 2028.

Traction

Even though the official and public product launch was in June 2024, the company has shown impressive early traction with a strong sales pipeline valued at over EUR 13 M in Annual Contract Value (ACV).

Annual Recurring Revenues (ARR):

  • 2023: EUR 13.000 (pilot customers)
  • 2024: EUR 250.000
  • 2025: EUR 1,5 M

Mentalport targets companies with 500 to 1,000 employees and anticipates a sales cycle ranging from 3 to 10 months, depending on the size of the company.

Exit Potential

  • Corporations that position themselves in compliance & occupational health and safety (e.g. Haufe)
  • Large BGM players (e.g. Workday)
  • Insurance companies

The Team

This document is non-binding preliminary information that provides an initial impression of the financing options offered. Neither this document nor the statements made by us in this context can be a sufficient basis for a financing decision. Investors should examine the possible investments themselves. Responsibility based on own analysis. This document does not constitute a sales prospectus, a public offer of an investment, an invitation to submit an offer, investment advice or investment brokerage. In providing this information, we make no representations, warranties or other contractual or quasi-contractual obligations, including with respect to the completeness, content or accuracy of the information reproduced in this document. This document is to be treated confidentially and may not be reproduced in whole or in part, passed on to third parties or published.

Your opinion matters to us:

Your Dealcaptain

Feedback enables transparency!

Adrian Rhomberg

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Disclaimer

The scenarios determined by the investment calculator are based on empirical values and assumptions. They are intended solely to illustrate possible developments and are no guarantee of future results. The actual performance of an investment may deviate significantly from the results forecast in the scenarios presented due to a wide range of macroeconomic and microeconomic factors. Start-up investments involve a high level of risk, which can extend to the total loss of the investment. It is expressly pointed out that neither Gateway Ventures nor its partners or representatives can be held liable for decisions made on the basis of the results of this calculator. Use of the calculator is at your own risk. You should seek independent financial advice and conduct your own research before making any investment decision.

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