Tech therapy startup SonderMind cuts 15 percent of staff

SonderMind2

A screenshot of SonderMind’s website.

A Denver-based tech startup that connects patients to therapists and has raised hundreds of millions of dollars from investors has trimmed its workforce.

SonderMind let go of approximately 50 employees, or 15 percent of its staff, company spokeswoman Elizabeth Lattanner said.

“Given the current economic conditions, we made the decision to accelerate our path towards profitability, in order to ensure we can remain independent and continue delivering high quality, technology-assisted mental health care,” co-founder and CEO Mark Frank said in a statement. “As part of this decision, we needed to make changes to teams and roles, which meant taking the difficult step of letting go of some of our colleagues.”

He said affected employees are being paid at least seven weeks severance, with another two weeks of pay for every six months they worked at SonderMind. The company is also covering three months of COBRA health care coverage.

Mark Frank

Mark Frank (Courtesy SonderMind)

SonderMind was founded in 2014. Frank, a West Point graduate and former U.S. Army officer, previously told BusinessDen he was inspired to start the company after growing frustrated with how hard it was to find a marriage counselor and watching his therapist sister’s difficulties in starting her business.

SonderMind’s software matches patients with therapists based on scheduling, insurance and other preferences. It also takes care of payments and insurance reimbursement.

SonderMind has raised about $275 million from investors since 2018, according to Form Ds filed with the U.S. Securities and Exchange Commission. The bulk of that was a $241.5 million raise reported in October 2021.

Bloomberg reported in July 2021 that the company had reached a billion-dollar valuation.

SonderMind announced last month that it had acquired Total Brain, a neuroscience company based in Silicon Valley.

SonderMind2

A screenshot of SonderMind’s website.

A Denver-based tech startup that connects patients to therapists and has raised hundreds of millions of dollars from investors has trimmed its workforce.

SonderMind let go of approximately 50 employees, or 15 percent of its staff, company spokeswoman Elizabeth Lattanner said.

“Given the current economic conditions, we made the decision to accelerate our path towards profitability, in order to ensure we can remain independent and continue delivering high quality, technology-assisted mental health care,” co-founder and CEO Mark Frank said in a statement. “As part of this decision, we needed to make changes to teams and roles, which meant taking the difficult step of letting go of some of our colleagues.”

He said affected employees are being paid at least seven weeks severance, with another two weeks of pay for every six months they worked at SonderMind. The company is also covering three months of COBRA health care coverage.

Mark Frank

Mark Frank (Courtesy SonderMind)

SonderMind was founded in 2014. Frank, a West Point graduate and former U.S. Army officer, previously told BusinessDen he was inspired to start the company after growing frustrated with how hard it was to find a marriage counselor and watching his therapist sister’s difficulties in starting her business.

SonderMind’s software matches patients with therapists based on scheduling, insurance and other preferences. It also takes care of payments and insurance reimbursement.

SonderMind has raised about $275 million from investors since 2018, according to Form Ds filed with the U.S. Securities and Exchange Commission. The bulk of that was a $241.5 million raise reported in October 2021.

Bloomberg reported in July 2021 that the company had reached a billion-dollar valuation.

SonderMind announced last month that it had acquired Total Brain, a neuroscience company based in Silicon Valley.

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