By Elise Hansen

Law360 (April 8, 2020, 2:02 PM EDT) -- Digital mental health platform SilverCloud Health said Wednesday it raised $16 million from investors, as the spread of the coronavirus puts remote health care in the spotlight.

SilverCloud said the Series B round included support from affiliates of several U.S. health care systems that already use its platform, which it characterized as a sign of confidence in its services. SilverCloud offers a "library" of programs for a range of mental health matters, from wellness and depression to coping with chronic health conditions such as diabetes and multiple sclerosis, according to its website.

The company, which has outposts in Boston, the U.K. and Ireland, said it is providing clients with expanded access to its platform for free to help with mental health care during the COVID-19 pandemic.

"With millions of people being asked to stay home and health systems needing to prioritize care, we recognize the heightened need for virtual support as the world copes with the COVID-19 pandemic," CEO Ken Cahill said in a statement.

SilverCloud said more than 300 organizations worldwide use its mental health programs, including the majority of the U.K.'s National Health Service mental health services. SilverCloud also counts several universities among its customers, and recently announced a partnership with Canadian retailer Shoppers Drug Mart, according to its website.

The company says its platform is compliant with data sharing standards laid out in the Health Insurance Portability and Accountability Act and the General Data Protection Regulation.

The latest funds will go toward expanding SilverCloud's reach in the U.S. and North America and conducting further research and clinical trials, the announcement said.

"We are seeing the acceleration of need for evidence-based care as people start understanding that it is just as effective in many cases as traditional care," a company representative told Law360.

The funding was led by MemorialCare Innovation Fund, a health care investor affiliated with California-based MemorialCare Health System. Other investors in the round included UnityPoint Health Ventures, which is the venture capital arm of Midwestern health system UnityPoint Health; OSF HealthCare's venture arm, which is known as OSF Ventures; and LRVHealth, a venture platform backed by provider, payer and vendor organizations.

"[SilverCloud] addresses a clear unmet need in the market by delivering clinically validated digital mental and behavioral health therapy," a MemorialCare Innovation Fund representative told Law360. "It achieves the triple aim of improving outcomes, increasing access and scale and doing so at reduced costs. This is highly relevant and applicable in any environment and during the COVID-19 crisis, the need is especially acute."

The funding comes as the remote health industry experiences a surge of interest as a result of the COVID-19 pandemic. Telehealth startup Tyto Health said on Tuesday that it raised $50 million from investors to expand its platform for at-home medical examinations, and telehealth was included in the Coronavirus Aid, Relief and Economic Security, or Cares, Act, with the Federal Communications Commission saying in late March that it is working to distribute $200 million from the rescue package to support telehealth services.

The federal agency that runs Medicare has said it is vastly expanding its use of telehealth services under the medical program for older Americans, although internet access remains a barrier to telehealth in many parts of the U.S.

MemorialCare Innovation Fund is represented by Michael Lawhead of Baker & Hostetler LLP.

Counsel information for SilverCloud was not immediately available Wednesday.

--Additional reporting by Kelcee Griffis and Christopher Cole. Editing by Stephen Berg.

Update: this story has been updated with comment from SilverCloud and MemorialCare and with counsel information.

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