I’ve seen a lot of things in my decade-plus in Silicon Valley. I’ve built and sold two companies, and I’ve written checks to over 200 startups, including some of the biggest names in AI like Anthropic, OpenAI, and Scale AI. But I’ve never seen anything like the current explosion in AI, especially in a field as personal and critical as mental health.
Most people think that if you build a great AI model, the world will beat a path to your door. They’re wrong. Dead wrong. The reality, especially in the heavily regulated and deeply human world of healthcare, is a brutal fight for survival. And I’m going to tell you what it really takes to win.
The Unsexy, Brutal Realities of HealthTech AI
Everyone gets excited about the tech. The shiny new models, the complex algorithms. I get it. I’m a tech guy at heart. But the hard truth is that the technology is maybe 20% of the battle. The other 80%? It’s a messy, unglamorous slog through regulatory hurdles, data privacy nightmares, and the sheer difficulty of building something that people will actually trust with their mental well-being.
I remember when we were building RemoteTeam. We were just trying to make it easier for companies to hire and pay people across borders. The compliance and legal headaches were insane. Now, multiply that by a thousand when you’re dealing with people’s health data. You’re not just building an app; you’re building a fortress. One slip-up, one data breach, and you’re done. Not just as a company, but your reputation is toast.
And let’s talk about the data. Everyone in AI is obsessed with data. “Data is the new oil,” they say. What they don’t tell you is that in healthcare, that oil is radioactive. You can’t just scrape it from the web. You need to build trust with users, with providers, with institutions. You need to be transparent about how you’re using their data. And you need to deliver real, tangible value in return. People aren’t going to pour their hearts out to a chatbot unless they believe it’s going to help them. And that trust is earned in millimeters and lost in miles.
Our $25M Round: A Story of Grit, Not Glamour
So, how did we raise $25 million in a market that’s notoriously skeptical of healthcare startups? It wasn’t because we had the fanciest pitch deck or the most revolutionary algorithm. It was because we had a story of relentless execution and a deep understanding of the problem we’re solving.
I’ve been on both sides of the table. As a founder, I’ve pitched to hundreds of investors. As an angel, I’ve seen thousands of pitches. And I can tell you that the ones that get funded are the ones that can show, not just tell. We didn’t just talk about our vision for an AI mental health app. We showed them a product that was already helping people. We showed them the unsexy, behind-the-scenes work we had done to build a secure, compliant, and effective platform.
One of the things that I think really resonated with investors is that we weren’t just a bunch of tech bros trying to “disrupt” healthcare. Our team is a mix of engineers, clinicians, and people who have personally struggled with mental health. We’re building this because we have to. Because we believe that AI can be a powerful tool to make mental healthcare more accessible, more affordable, and more effective.
I remember one investor asking me, “What’s your moat? What’s going to stop a big tech company from coming in and crushing you?” My answer was simple: “Our moat is our obsession with the problem.” We’re not just building a product; we’re building a community. We’re building a brand that people can trust. And that’s something that you can’t just buy or code your way into.
My Advice to Founders in the Trenches
If you’re a founder trying to build a company in the AI healthcare space, here’s what I’ve learned, often the hard way:
- Fall in love with the problem, not the solution. Your fancy AI model is a tool, not the end goal. The goal is to solve a real, painful problem for people. Spend more time with your users than you do with your code.
- Build a team of believers. You need people who are as obsessed with the problem as you are. This is a marathon, not a sprint. You’ll need that shared passion to get through the tough times.
- Don’t be afraid to be opinionated. The world doesn’t need another bland, corporate-speak startup. Have a point of view. Stand for something. The people who resonate with your mission will become your biggest advocates.
- Sweat the small stuff. In healthcare, the details matter. A sloppy UI, a confusing onboarding flow, a slow-to-load app – these things can erode trust. Every touchpoint with your user is an opportunity to build or break that trust.
The Road Ahead
Raising $25 million is a huge milestone, but it’s not the destination. It’s fuel for the next leg of the journey. We’re going to use this funding to double down on our product, to expand our reach, and to continue to build a company that is worthy of our users’ trust.
I’m not going to tell you that the future is bright. The future is what we make it. And we’re going to make it a future where everyone has access to the mental healthcare they need. It’s going to be a long, hard fight. But it’s a fight we’re ready for.
Frequently Asked Questions
What experience informs this perspective?
This perspective comes from over a decade of building companies in Silicon Valley, two successful exits (RemoteTeam to Gusto, MovieLaLa to Gfycat), and investing in 200+ startups including Anthropic, OpenAI, and Scale AI. I write about what I've lived.
How can I apply this thinking to my own situation?
Start by identifying the core principle behind the opinion, not the specific example. Then ask yourself: does this principle apply to my context? If yes, test it in a small, low-risk way before going all in.
Do all experts agree with this view?
No, and that's fine. The best ideas in business are often contrarian. I share my perspective based on my experience and data, but I encourage you to seek out opposing viewpoints and form your own conclusions.