KHP Ventures, a UK-based venture capital firm, has announced the launch of a £20 million fund specifically designed to accelerate startups addressing depression, anxiety, and psychosis. This initiative aims to bridge the gap between mental health startups and clinical trials or healthcare systems, which is often lacking in the industry.

The fund, dubbed the Innovations in Mental Health Fund, has secured £8 million in commitment from Wellcome, a charitable foundation, as its anchor investor. The fund is expected to close in early 2025, with a total target of £20 million. It will invest between £250,000 to £1 million in startups that demonstrate a focus on developing solutions for the UK market.

KHP Ventures is an existing collaboration between King's College London, King's College Hospital NHS Foundation Trust, and Guy's and St Thomas' Hospital NHS Foundation Trust. The firm invests in healthcare and medtech startups that aim to have operations in the UK. The Innovations in Mental Health Fund will be supported by the UK's largest mental health provider, the South London and Maudsley NHS Foundation Trust.

To kick-start the initiative, KHP Ventures is running a free, 12-week immersion program for selected startups. This program will evaluate the startups for eventual investment by the fund. The program is open to startups worldwide, but they must demonstrate a focus on developing solutions for the UK market.

Startups that receive investment will benefit from support for developing clinical and academic trials, accessing patient and service data, and testing their products in a live environment. They will also gain access to patient focus groups, experts, clinicians, and academics, thanks to the partnership with the South London and Maudsley NHS Foundation Trust.

The need for this fund is underscored by the growing demand for mental health services in the UK. According to recent data, around 3.8 million people were in contact with the UK's NHS mental health services over the last year, a significant increase of almost two-fifths compared to before the pandemic. This includes over 1 million children, with 16-year-olds being the most likely to seek support.

Dr. Pooja Sikka, the founding general partner of the Innovations in Mental Health Fund, emphasized the need for a thematic fund in mental health, citing the abundance of startups in this space and the potential of technology. "Our anchor investor, the Wellcome Trust, is trying to raise the bar on scaling mental health, and in particular, a thesis on digital mental health," she added.

Sikka noted that the population's mental health has deteriorated, affecting every section of society. However, she believes that technology holds immense potential to address this issue. "Really what we wanted the funding to do here was to create a very specific pool of capital, but with the right support for the startups," she said.

Elena Netsi, research lead in digital mental health at Wellcome, echoed this sentiment, stating, "Millions of people are held back by mental health problems. There is a pressing need for new and improved ways that we can help them live the lives they wish to lead."

The launch of this fund marks a significant step towards addressing the mental health crisis in the UK, and its impact is likely to be felt beyond the country's borders. As the demand for mental health services continues to grow, initiatives like the Innovations in Mental Health Fund will play a crucial role in driving innovation and improving outcomes for individuals affected by mental health issues.