Summer Health, a pediatric behavioral health startup, has recently acquired Gen Z health platform Caraway Health. This acquisition marks a significant move for Summer Health, as it will now have a stronger presence in the realm of adolescence and early adult health.
Caraway Health, founded in 2022, has been dedicated to providing comprehensive health services for Gen Z women. Their focus ranges from mental health services to physical and reproductive health, catering to women and individuals assigned female at birth between the ages of 18 and 29. Despite facing some challenges, Caraway Health managed to secure significant funding, including $16.75 million in Series A funding during the funding slump of 2023, on top of $10.5 million in seed funding. Notable investors in Caraway Health include GV, Maveron, 7wireVentures, and Hopelab Ventures.
The acquisition of Caraway Health by Summer Health is seen as a strategic move to enhance Summer Health’s commitment to pediatric care. Ellen DaSilva, CEO of Summer Health, expressed excitement about the acquisition, stating that it will allow the organization to extend its support into early adulthood and make its services more accessible to families nationwide. With plans to introduce insurance offerings and expand coverage into new states, Summer Health aims to further remove barriers to care for its patients.
In 2023, Caraway Health bolstered its behavioral health services by acquiring Sesh, a digital group therapy platform. This move showcased Caraway Health’s dedication to expanding its offerings and meeting the evolving needs of its target demographic.
While signs of transition were evident with Caraway Health’s website no longer operational as of December, the acquisition by Summer Health signifies a new chapter for the platform. Summer Health, which currently operates on a direct-to-consumer model, is expected to broaden its insurance coverage and potentially venture into new specialities, such as behavioral health, with the addition of Caraway Health to its portfolio.
Overall, the acquisition of Caraway Health by Summer Health represents a strategic alignment of two organizations with complementary strengths in the healthcare space. As they join forces, they aim to enhance the quality of care provided to their patients, particularly in the critical stages of adolescence and early adulthood.
