Hypnosis for health? Investors have placed a $1.1 million bet on Mindset Health
Chris and Alex Naoumidis came to hypnotherapy through clothing.
How The New York Times reported last year, the two brothers initially started their careers as startup entrepreneurs with a peer-to-peer dress sharing app for women. Australian natives, overwhelmed by doubts, about their ability to be successful in startups and when apps didn’t work, the father suggested trying hypnotherapy.
Those sessions led the brothers to launch Mindset Health and raise $ 1.1 million in funding from investors including Fifty Years, YC, Gelt VC, Giant Leap VC and angel investors in the United States and Australia
There are many supporters of a small round that ended in November 2019, but it is indicative of the type of bets that investors are willing to take in the mental health space these days.
A whole series of apps has arrived on the market to treat the mental disorders that seem to accompany life in the modern world. There are companies that facilitate pairing with therapists, companies that provide mental well-being tools in the form of cognitive behavioral therapies, billion-dollar companies that offer awareness and meditation, and companies that offer hypnotherapy.
The hypnotherapy sessions that Alex and his brother held gave them an idea. “Could we do it similarly to meditation and bring it to market in a way that would be useful?” Alex Naoumidis told me.
Meditation is a multimillion-dollar activity with apps like Calm and headspace raising millions of dollars in venture capital financing and giving them billions of dollars in perceived valuation.
Alex Naoumidis points out that the app is not a therapy, the company cannot present it in this way in accordance with current regulations. “It’s more of a self-management tool,” he said. “Help people with anxiety or [irritable bowel syndrome] to manage those symptoms at home to compliment the work they are doing. ”
The goal, according to Naoumidis, is to have a number of apps under Mindset’s umbrella that deal with specific conditions. While it started out as a more general mental well-being app, the company now has Nerva, its IBS focused product, along with its mental toolkit for general mental well-being.
Nerva is not an economic subscription. There is a $ 99 prepayment and then a $ 88 three month subscription. The Mindset subscription service costs $ 11 (price to be sold in the COVID-19 era) down from $ 64 when Times writer Nellie Bowles tried the product for the first time.
Here’s how he described it:
As a first step, the app suggested that I send a message to a friend or tweet the phrase “He who is conquered is the most powerful warrior” to the public. For the next 19 minutes, a light male voice told me that my mind could slow down. It can convert worries into decisions. The process can even become second nature. And if it does, I can be an action person. An action person.
I did another module, Increase Productivity, which is voiced by a lively young man – a young start-up in my ear who asks me to repeat after him: “I allow myself permission to know what I want to be and what I want to do and do it efficiently. “
These mental health apps, or any other wellness-promoting apps, supplements or businesses must have some clinical studies to support their claims and the mindset is working with doctors on the products. The initial Mindset app was designed in concert with Dr. Michael Japko while the IBS app was designed with Dr. Simone Peters.
Both receive revenue shares for the company for their work by developing the course of therapies.
The company’s co-founder claims not to scientifically see successes coming from the service. People self-destruct their symptoms at the beginning and end of the program. For people who complete the program, 90 percent have reduced symptoms (I’m not sure what percentage of enrollments complete the program).
“Our idea is that we want to help researchers who develop these fantastic programs deliver them digitally,” said Naoumidis. “We have worked with leading researchers worldwide to make it more accessible.”