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Mental Health Landscape Map, 2026 <\/p>\n
(Courtesy: Startup Nation Finder)<\/p>\n
\u201cA lot of companies showed up,\u201d Adi Ostry Matalon told The Media Line. \u201cMental health is no longer emerging. It\u2019s entering its next phase.\u201d<\/p>\n
A catalyst behind creating the map, Matalon is a leading voice in Israel\u2019s mental health innovation ecosystem, and is currently building a new impact-driven investment vehicle focused on mental health technologies. She said that while total capital increased, the number of investment rounds fell from 20 in 2024 to 13 in 2025. Four large deals, ranging from $45 million to $65 million, played a dominant role. Moreover, the top five health tech companies raised $532 million overall, with three mental health companies accounting for $297 million of that total.<\/p>\n
Matalon said this trend reflects growing demand for clinical depth, measurable outcomes, and real-world validation, driven by health systems, regulators, and payers.<\/p>\n
The top four companies to receive investments included Syremis Therapeutics ($165 million), a clinical-stage biopharmaceutical company developing novel medicines for mental health; Empathy ($72 million), an Israeli bereavement support company; Eleos ($60 million), which provides AI-powered documentation automation to ease the operational burden on behavioral healthcare providers; and Sensi.AI ($45 million), a company that describes itself as a \u201c24\/7 strategic care co-pilot.\u201d<\/p>\n
Matalon noted a shift away from \u201cnice apps\u201d toward evidence-based therapeutics and managed care, along with a move toward not only artificial intelligence but also deeper and more mature technologies. \u201cIt\u2019s more about B rounds and C rounds, which means that the investors really believe in this area,\u201d Matalon said. \u201cIt\u2019s really showing confidence in this field.\u201d<\/p>\n
She added, \u201cThis is really a strategic growth engine. We see more and more investors looking for a solution. The market is huge in Israel, but it\u2019s even more important globally.\u201d<\/p>\n
Esther Barak Landes, a local leading investor, philanthropist, and Matalon\u2019s partner, echoed Matalon\u2019s vision. \u201cWhat we are looking for is to build an industry of very, very successful ventures,\u201d she told The Media Line.<\/p>\n
At the policy level, the American Food and Drug Administration has recently been warming to digital healthcare solutions in mental health, including clearing several prescription digital therapeutics for mental health conditions.<\/p>\n
Israel\u2019s Ministry of Health is also working to advance these policies, including integrating digital therapeutics into the public health system and creating funding tracks for these technologies. \u201cI think these are really important steps, and even more needs to be done in this area,\u201d Matalon said. \u201cWhen the hospitals and the health funds will pay for digital therapeutics, that will make a really big change for these companies to stay in Israel and scale.\u201d<\/p>\n
She added that there is already a shift from B2C to B2G, with more hospitals and organizations willing to adopt new technologies, putting the local industry on the right track. Still, around 80% of the ecosystem remains in the startup or early development phase, according to the report. The companies are divided into subcategories: managed care (75), self-care (45), therapeutics (24), workflow automation (17), and discovery and research (9).<\/p>\n
\u201cTechnology is no longer just an enabler, it\u2019s the intervention,\u201d Matalon said. \u201cAI, diagnostics, data-driven personalization, and biologically grounded approaches are shaping entirely new categories in mental health.\u201d<\/p>\n
She said, \u201cWhat\u2019s really unique in Israel, and it\u2019s an advantage, is that we are kind of a beta site. A lot of hospitals are willing to try and research different technologies. It\u2019s not just about building startups and good ideas, but testing them in real time and fast.\u201d Matalon said that October 7 brought together many experts and innovators to find solutions.<\/p>\n
\u201cIt\u2019s something in the Jewish Israeli spirit,\u201d she said, describing a desire to turn tragedy into triumph. At the same time, while Israel has become a \u201cliving lab\u201d for testing these treatments and technologies, depression is rapidly increasing worldwide.<\/p>\n
According to the World Health Organization, depression affects more than 300 million people, nearly 5% of the global population, based on 2024\u20132025 estimates. Matalon concluded, \u201cIsrael didn\u2019t choose to be a living lab, reality made it one.\u201d<\/p>\n