Slingshot AI, Developer of LLMs for Mental Health, Secures $30 M in Seed Funding

Slingshot AI, a New York and London-based startup focused on developing large-language models for behavioral health, has successfully raised approximately $30 million in a recent seed funding round according to crunch base.  The investment was led by prominent venture capital firm Andreessen Horowitz (a16z), signaling strong confidence in the company’s innovative approach to mental healthcare.

Founded in 2022 by Daniel Cahn and Neil Parikh, Slingshot AI launched its first product earlier this year – an AI counselor named Ash. This virtual therapist allows users to communicate via speech or text within the app, offering advice and support similar to a human therapist. The AI is designed to remember past conversations, enabling it to help users work through problems over time and achieve their goals.

The funding round garnered significant investor interest, prompting Menlo Ventures to quickly follow with an additional investment. This subsequent funding brought Slingshot AI’s valuation to an impressive $220 million, according to a source familiar with the deal according to news sources. 

Slingshot AI’s mission is to address the growing gap between mental health demand and available providers, which currently stands at a ratio of 10,000 to 1. By leveraging AI technology, the company aims to increase global access to mental healthcare exponentially.

The substantial investment in Slingshot AI reflects the broader trend of Silicon Valley’s enthusiasm for AI applications across various sectors. With the U.S. mental health market reaching approximately $115 billion this year, according to Precedence Research, investors see a significant opportunity in applying AI to this field.

Slingshot AI is not alone in this space, following in the footsteps of companies like Woebot, an AI-powered chatbot that has raised about $123 million to date and received FDA breakthrough device designation for postpartum depression treatment.

As for the future use of this funding, it is likely that Slingshot AI will allocate resources to further develop and refine their AI models, expand their research capabilities, and potentially scale their operations. The company may also invest in clinical trials or regulatory approvals to validate their AI counselor’s effectiveness and safety. Additionally, some of the funds could be directed towards marketing efforts to increase awareness and adoption of their innovative mental health solution.