Blossom Health, a NYC-based provider of an AI operating system for psychiatry, has raised $20 million in a Series A and Seed funding round led by Headline with Mathias Schilling. Co-Founder and Managing Partner of Headline joined the board.
The round also saw other investors, returning investors Village Global and TA Ventures, also participating alongside new investors Operator Partners and Correlation Ventures. Several angel investors were involved as well, including the founders of General Catalyst, Flatiron Health, Sword Health, Fay, Elemy, Zip, Blank Street, Assured, Bridge, Birches Health, and Enzo Health.
The company plans to use the funds to expand into more states, partner with national and regional health insurers, onboard more providers, and invest in R&D to advance its applied AI technology.
Blossom Health is an all-in-one AI platform for psychiatry that helps manage and improve mental healthcare. Its system connects psychiatrists, patients, insurers, pharmacists, and other stakeholders to deliver better care at scale.
The platform’s AI copilots support psychiatrists in making diagnoses, creating treatment plans, and choosing medications. With thousands of patients already treated, Blossom has shown it can improve mental health outcomes and prevent conditions from getting worse.
Blossom also reduces the administrative burden by using AI agents for tasks like billing, scheduling, reception, care coordination, and documentation, allowing psychiatrists to focus more on patient care.
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“Mental health is one of the biggest public health challenges in the U.S.,” said John Zhao, Founder and CEO of Blossom Health. Millions of people struggle due to a shortage of psychiatric care. By using AI to support psychiatrists, Blossom aims to make mental healthcare more affordable and accessible for everyone.”
“Blossom is tackling one of the most urgent challenges in healthcare with strong focus and advanced technology,” said Mathias Schilling, Co-Founder and Managing Partner of Headline. “Their AI platform is not only improving access to psychiatric care but also changing how doctors work and how patients recover. We believe Blossom can become a key technology for modern mental health, helping close the gap between high demand and limited clinical resources.”
About Blossom
Founded by John Zhao, Blossom is an all-in-one AI platform for psychiatry that supports psychiatrists and psychiatric nurse practitioners. Its tools are used by hundreds of clinicians treating thousands of patients across multiple states, improving outcomes and reducing administrative work. Blossom works with major insurance providers like Optum, UnitedHealthcare, Aetna, Cigna, Evernorth, and Blue Cross Blue Shield, keeping average copays around $22 and making care more affordable. Most patients are seen within 48 hours, often on the same day, providing fast access to treatment.
About Headline
Founded in 1998 Headline is a global venture capital firm that supports fast-growing technology companies in expanding worldwide. With over $4 billion in assets, it invests through regional early-stage funds across the U.S., Europe, Asia, and Latin America, along with a Global Growth Fund for later-stage companies. This global presence helps Headline spot trends, connect with strong founders, and invest at every stage. Its portfolio includes companies like Bumble, Sonos, Segment, SEMrush, and Acorns.
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