How to Start a Mental Health Startup in Canada: Learn from Top Leaders
2 days ago
If you’re thinking about starting a mental health startup in Canada, you’re stepping into a space that truly needs innovation.
Right now, Canada is facing a serious mental health crisis. And it’s getting worse.
The pandemic made it even more visible, especially among young people.
Between 2019 and 2021, the number of Canadians reporting poor mental health tripled.
In 2023, about 26% of young people aged 16-21 rated their mental health as "fair" or "poor." That’s a big jump compared to just a few years ago.
Mental illnesses like anxiety, depression, bipolar disorder, and schizophrenia are sadly very common.
Around 18% of Canadians aged 15 and older are living with a mental health or substance use disorder right now.
Even worse, millions of people who need help aren’t getting it.
Services are expensive. Wait times are long. And in many remote areas, care just isn’t available.
This is where technology can really make a difference. Digital health tools like teletherapy apps, AI-powered mental health platforms, and online therapies are changing the game.
It’s clear: if you want to build a mental health startup, there’s never been a better time — and Canada really needs it.
In this blog, we’ll show you 7 amazing Canadian mental health startups you should know about.
Plus, we’ll share practical tips if you’re thinking about launching your own.
The Canadian Mental Health Market: Big Needs, Big Potential, Tough Start
Let’s start with the good news:
The mental health tech space is growing fast. In fact, Canada’s mental health app market is expected to more than double—jumping from around $305 million in 2024 to over $716 million by 2030. That’s a 14.6% annual growth rate.
The big drivers? Tools for anxiety, depression, stress, meditation, and wellness.
Zooming out, the digital health market in Canada (think telehealth, mobile apps, wearables, health analytics) was worth about $13.5 billion in 2024 and could hit $54 billion by 2030.
That’s insane growth—and virtual care (like telehealth) is leading the charge.
Globally, the AI in the mental health market is also booming.
It’s expected to grow from $1.45 billion in 2024 to almost $12 billion by 2034.
AI tools like NLP and machine learning are already changing how mental health is diagnosed and treated—making care more accurate, faster, and even predictive.
Some tools can analyze speech patterns to detect anxiety or early signs of a mental health crisis.
Now, for the tricky part.
Raising money as an early-stage startup in Canada isn’t easy right now. Yes, Canadian VCs invested around $7.8 billion CAD in 2024, but most of that went to later-stage companies.
Seed-stage funding dropped by almost 50% compared to the previous year. That’s a big hit for new startups trying to get off the ground.
But there is a silver lining:
Life sciences and healthtech still got strong attention—$1.4 billion CAD across 128 deals.
Also, public and semi-public groups like BDC, EDC, CABHI, and Investissement Québec are stepping up, especially at early stages. And BDC recently pledged $1 billion CAD to help Canadian startups scale.
Top 7 Canadian Mental Health Startups to Watch in 2025
Canada is already home to some impressive mental health tech companies. They’re using AI, digital therapy, and data-driven care to make mental health support more accessible, personalized, and measurable. Here are a few standout examples:
1. Dialogue Health Technologies
One of the biggest names in virtual care. Dialogue offers everything from online doctor visits to mental health support, all under one platform.
Their mental health programs include self-guided and therapist-led iCBT (internet-based Cognitive Behavioral Therapy).
They even use a shared EMR to keep care teams in sync. In 2024, they bought Koble Care to strengthen their women's health offerings.
2. Greenspace Health
A platform built for mental health professionals. It helps them track patient progress using evidence-based measurement tools.
Providers can see real-time data and trends, which improves decision-making. In 2025, they raised a big round of funding to keep innovating in behavioral health.
3. Inkblot Therapy (Now part of Green Shield Canada)
Inkblot matches people to the right therapist using AI.
Their program, “Tranquility,” offers gold-standard iCBT therapy.
Since joining Green Shield Canada, they’ve scaled fast and even offer free therapy to support women’s mental health.
4. MindBeacon (Now part of CloudMD)
Started as a digital iCBT platform and later added live therapy sessions.
After being acquired by CloudMD, it became part of a larger health platform offering both physical and mental health services.
Their programs showed strong clinical results, helping thousands.
5. Sööma
A newer player with a niche focus—nutrition counseling for eating disorders.
They offer virtual and in-person support and take a “health at every size” approach.
Their focus is unique, and they're gaining attention.
6. OPTT Health
This company uses AI to turn patient stories into clinical insights.
It helps care teams better understand what patients are going through, in real time. That means smarter, more personalized treatment plans.
7. PsyMood
Focuses on culturally sensitive care. It connects users with mental health professionals who speak their language and understand their background.
A great option for newcomers and minority communities. They were recently acquired by Wayble.
What Tech is Powering Today’s Mental Health Startups?
Mental health startups are evolving fast — and tech is the reason why. Here’s a quick look at the key technologies driving this change:
1. Artificial Intelligence (AI)
Startups are using AI to analyze speech for signs of anxiety, build therapy chatbots, and match users with the right therapist.
It’s even being used to develop new medications. But there are still challenges — like bias in data and privacy concerns — so it’s important to keep human oversight in the loop.
Explore: AI Tools for Mental Health Clinicians: Save Time, Improve Outcomes
Video calls and secure messaging have made therapy more accessible. Since COVID, telehealth adoption has skyrocketed.
Platforms like Dialogue and HALEO are making it easier for people to get help from home — quickly, affordably, and with less stigma.
3. Mobile Apps & Web Platforms
Apps are the entry point for most users. Whether it’s booking a session, tracking moods, or chatting with a therapist, apps are essential.
Startups often start with an MVP or a cross-platform app to keep costs low and test their ideas.
4. iCBT (Internet-Based Cognitive Behavioral Therapy)
This digital version of CBT can be done independently or with a therapist.
Platforms like Inkblot and MindBeacon have built successful models around it, showing strong results in clinical trials.
5. Measurement-Based Care (MBC)
Startups like Greenspace Health use tech to track patient progress through data. This helps clinicians make better decisions and show what’s working — or what’s not.
6. Data & Interoperability
Using big data and NLP, startups can detect patterns and predict issues earlier. But integrating with existing hospital systems can be tricky. That’s why interoperability is key — and a growing trend.
7. Wearables
Smartwatches and fitness trackers can now monitor mental health too. Sleep, heart rate, and activity data help flag early signs of stress or anxiety — and support remote care.
8. Chatbots & Virtual Assistants
AI-powered chatbots are being added to mental health apps to answer common questions, offer guidance, or even provide basic therapy — 24/7.
9. Robotic Process Automation (RPA)
RPA can automate admin tasks like scheduling or billing, reducing overhead and letting startups focus on care.
10. Emerging Tech
From voice tech to depth cameras and AI + 3D printing — some startups are pushing boundaries with unique tools to improve care and access.
5 Smart Tips for Mental Health Startup Founders (Backed by Real-World Examples)
If you're starting a mental health tech company, you're stepping into a space that needs care, trust, and deep understanding. Here are a few key tips to set yourself up for success:
1. Stay Clinically Strong
You can't build trust with fluff. Ground your platform in proven methods like CBT or DBT. If you're using iCBT (internet-based CBT), make sure it's tested or therapist-guided.
Measurement-Based Care (MBC) can help you track progress and prove your app actually works.
Companies like Dialogue and MindBeacon built trust by validating their iCBT programs. Greenspace Health did the same with MBC.
2. Learn the Laws Early
In Canada, privacy laws like PIPEDA and PHIPA are a big deal. If you plan to expand to the U.S., you’ll also need to follow HIPAA. These aren’t optional—they’re must-haves.
So, things like encrypting data and following secure workflows should be built into your app from day one.
The Mental Health Commission of Canada also stresses how important this is. Many startups hire privacy consultants early, and yes, it takes time and money.
3. Involve Clinicians
You need clinical minds behind your product. Psychologists, psychiatrists, and counselors should help shape your platform.
This keeps your solution grounded in real clinical needs. Or let licensed clinicians join your platform directly.
Get-A-Head is a great example—they built tech guided by mental health professionals. And don’t forget to include people with lived experience in your design process.
4. Design Like It Matters
Your design is more than looks. It should feel safe, calm, and stigma-free. Think easy booking, smooth goal tracking, and comforting visuals.
People should want to use your app. A good design even cuts down your marketing efforts—because people stick around.
5. Build for the Long Run
The healthcare system is messy. If your app can’t connect with Electronic Health Records (EHRs), it won’t fit into the real world.
So plan for that early. Using standards like FHIR can make integrations easier later. Greenspace Health did this by designing their tools to work with hospital systems.
6. Make It Accessible
In Canada, access is a huge issue. Rural areas, low-income groups, and marginalized communities struggle to get care.
Your app can change that. Make it affordable, mobile-first, and language-friendly. PsyMood connects people with therapists who speak their language and understand their culture. That’s the kind of impact that sticks.
7. Work with Healthcare Tech Experts
Tech in healthcare is not a DIY job. You'll need developers, compliance specialists, designers, and analysts who all understand the healthcare world.
At SyS Creations, we bring all of this under one roof. We’ve been building healthcare apps in Ontario for over 10 years—always with HIPAA, PHIPA, and PIPEDA in mind.
