# Brightside Financial Model Brightside is a digital mental health platform delivering evidence-based, personalized depression and anxiety care via medication, therapy, and self-care - targeting high-severity, high-cost populations. - Canonical: https://finamodel.com/startups/brightside - Excel download: https://finamodel.com/startup-models/brightside.xlsx - Category: Health-tech - Model type: SaaS ARR / Valuation - Funding round: Series A - Funding: $24M - Founded: 2021 - Geography: US (national telehealth market) [DECK, slide 3] - Customer: B2B2C ## About the company Brightside is a digital mental-health platform providing evidence-based depression and anxiety care through medication, therapy, and self-care. It targets high-severity, high-cost populations that need more than a lightweight wellness app. The company can sell through employers and payers while also serving consumers directly. Its commercial model is likely a per-member access fee with possible outcomes-based upside, supported by clinical care delivery. The model should forecast contracted lives, member activation, PMPM revenue, direct subscribers, care utilisation, and retention. Clinician capacity, pharmacy or therapy cost, outcomes incentives, and acquisition expense should be separate drivers. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - Three care modalities delivered digitally: medication management (precision prescribing + delivery), therapy (evidence-based program with licensed therapists), and self-care skill kit. - Differentiator: closed-loop, data-driven system - comprehensive intake collects phenotypic data, selects medication most likely to work for each patient, then monitors via frequent symptom measurement (PHQ-9 / GAD-7) and triggers provider interventions in real time. - Outcome guarantee: "Better care, guaranteed" with success-based reimbursement ambition - paid for results, not care delivery. - Target population: high-complexity, high-severity depression/anxiety including comorbid SUD, OCD, PTSD, suicidal ideation, chronic health conditions. ## Market - Framing: "$100Bn+ annual opportunity for depression and anxiety care" - stated as a future market size once mental healthcare is predominantly online; no structured TAM/SAM/SOM breakdown provided. - Market thesis: <50% of people with depression get any care; <25% get quality care today. Telemedicine shift accelerating; national specialized chronic-condition platforms expected to dominate. - No SAM or SOM figures in deck. ## Traction & metrics No revenue, customer count, growth rate, or financial traction figures are shown. All quantitative data in the deck is clinical outcomes data (slide 8): - 80% of members show clinically significant treatment response (≥4-point PHQ-9 reduction) within 12 weeks - 58% achieve remission (PHQ-9 <10) within 12 weeks - Baseline average PHQ-9: 18 (severe); 12-week average PHQ-9: 9 (moderate) - Suicidal ideation prevalence drops from 49% at baseline to 17% at 12 weeks - Sub-group outcomes (tx response / remission): Severe depression 86%/42%; Depression + anxiety 83%/52%; Suicidal ideation 84%/49%; Chronic health condition 80%/56% ## Competition / moat - Implicit competitive framing: market currently served by primary care generalists ("most depression/anxiety is treated in primary care by busy generalists") and large health systems. - Brightside positions vs. horizontal telehealth (Teladoc, MDLive) as specialized, vertical, outcomes-focused - analogized to DTC brand disruptors (Away, ThirdLove, Allbirds, Everlane) vs. department stores (Macy's) and platforms (Shopify). - Moat sources implied: proprietary phenotypic data, precision prescribing algorithm, measurement-based care infrastructure, clinical outcomes track record. - No explicit named competitor analysis slide. ## Team & funding ask / use of funds - Team: 12 named leaders with strong digital health pedigree: - Brad Kittredge, Founder + CEO (23andMe) - Mimi Winsberg MD, Founder + CMO (Ginger, Lyra) - Jeremy Barth, Founder + CTO (WellnessFX) - Functional heads: Ops (Stanford Health Care), Marketing (ThirdLove), Growth (Blink Health), CFO (Pill Club), Payer Relations (Integra), Design (Frog Design) - Funding ask: Series A - amount not stated --- ## Recommended financial model - **Archetype + why:** B2B2C digital health subscription / PMPM model. Brightside sells into employers and payers (B2B channel) and direct-to-consumer, with a per-member access fee plus potential outcomes-based upside. Closest analogue is a mental health SaaS / care-management PMPM model (similar to Lyra, Spring Health). A 3-statement operating model with member cohort build-up is appropriate. - **Forecast horizon & granularity:** 5-year annual (Y1–Y5) with monthly detail for Y1–Y2. Series A context warrants path-to-profitability visibility over 4–5 years. - **Key drivers & assumptions:** *Membership / volume* - Starting enrolled member count: 500–2,000 at Series A close; no traction data given - New member adds per month (by channel: employer contracts, direct): ramp from ~100/month in Y1 to ~1,000+/month by Y3 - typical early-stage digital health - Churn rate (monthly): ~3–5%/month for DTC; employer contract members lower (~1–2%/month) - benchmark from mental health platforms - Average engagement / treatment duration: 12 weeks referenced clinically; some members re-engage or extend *Revenue* - PMPM (per member per month) rate - DTC: $100–$200/month (medication + therapy bundles); benchmark: Brightside publicly listed ~$95–$349/month at various tiers, but not in this deck - PMPM - employer/payer channel: $50–$100 PMPM (negotiated lower, higher volume) - Outcomes-based bonus / shared savings: 0% in Y1–Y2, ramp to 10–15% of contract value by Y4 as track record builds - Revenue recognition: ratably over subscription period *Cost of revenue (clinical delivery)* - Clinician cost per active member per month (psychiatrists/NPs for medication): $20–$40/member/month - Therapist cost per active member per month: $30–$60/member/month (session-based) - Pharmacy / medication COGS (mail-order delivery): $15–$30/member/month - Platform / infra cost per member: $5–$10/member/month - Target gross margin: 40–60% at scale (digital health benchmark); lower in Y1–Y2 during ramp *Operating expenses* - S&M / CAC: CAC of $200–$600 (DTC digital); employer channel CAC higher upfront ($5K–$50K per contract) but amortized over large member cohorts - R&D (platform, algorithm): 20–30% of revenue in Y1, declining to 10–15% at scale - G&A: 15–20% of revenue *Clinical outcome as a business driver* - 80% tx response / 58% remission at 12 weeks - used to justify PMPM pricing premium and outcomes-based contract eligibility; model can show value-based savings vs. treatment-as-usual - **Scenarios (Base / Bull / Bear - which variables flex):** - Base: Moderate employer channel ramp (2–3 new contracts/quarter), DTC steady-state, 50% gross margin by Y3 - Bull: Payer contract wins accelerate (national insurer partnership), outcomes-based bonuses kick in Y3, gross margin expands to 60%+ - Bear: DTC CAC inflates (competitive market), payer contracting delays, gross margin stays <40% through Y3; runway risk surfaces - **Required sheets / outputs:** 1. Assumptions dashboard (toggle: DTC vs. B2B mix, PMPM rates, CAC, churn) 2. Member cohort build (monthly: new, churned, active by channel) 3. Revenue build (PMPM × active members by channel + outcomes bonus) 4. COGS / gross margin waterfall (by cost component: clinical, pharmacy, platform) 5. OpEx build (S&M, R&D, G&A) 6. P&L summary (monthly Y1–Y2, annual Y1–Y5) 7. Cash flow & runway (Series A proceeds + burn rate → next raise timing) 8. Unit economics summary (LTV, CAC, LTV/CAC, payback period by channel) 9. Scenario toggle (Base / Bull / Bear) ## Frequently asked questions ### Is the Brightside financial model free? Yes. The Brightside model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.