Mentaily, a mental health technology startup, has closed a $3 million seed funding round to advance its AI-powered diagnostic platform that addresses the growing global mental health crisis. The round was led by US-based and Israeli family offices, with participation from impact funds The Rashi Foundation and Sheatufim, along with prominent digital health angel investors.
AI Platform Addresses Critical Mental Health Gap
The company's flagship product, LIV, represents a significant advancement in psychiatric triage technology. The platform simulates clinical psychiatric intake sessions and diagnoses psychological distress and mental illness with high accuracy. This innovation comes at a critical time when mental health conditions are rising globally while support systems remain inadequate.
The scale of the mental health crisis is substantial. In the United States alone, an estimated one in five people are affected by mental health issues, while over 120 million Americans live in areas with inadequate mental health services. This disparity highlights the urgent need for new technologies to augment existing mental health interventions.
Technology and Clinical Integration
LIV operates through multilingual, natural-language conversations delivered via voice or text, with optional AI avatar functionality to provide a personalized and scalable approach to mental health triage. The platform was developed through a collaborative effort between ARC (Accelerate, Redesign, Collaborate) Innovation Center and the Drora and Pinchas Zakai Department of Psychiatry at Sheba Medical Center, working alongside Microsoft and KPMG.
The technology is already operational across hospitals, HMOs, rehabilitation centers, and government organizations throughout Israel. Beyond serving the general population, LIV has been specifically adapted to support security forces through collaborations with the Directorate of Defense Research & Development (DDR&D) and Israel's Ministry of Defense, addressing the mental health needs of populations frequently exposed to high stress and prolonged trauma.
Leadership and Expansion Plans
Mentaily was founded in 2024 by CEO Iris Shtein, serial Israeli-American entrepreneur Guy Yachin, and senior clinicians from Sheba Medical Center including Prof. Mark Weiser, Dr. Asaf Caspi, and Dr. Daniel Cohen. The company is actively recruiting to support its expansion efforts.
"At Mentaily, our mission goes beyond innovation—it's about solving real-world challenges in mental health care," said Iris Shtein, CEO and Co-Founder of Mentaily. "LIV enables real-time detection of deterioration and high-risk situations, allowing clinical teams to intervene early, with precision. By supporting clinical decision-making and optimizing workforce allocation, we help address the global shortage of mental health professionals."
Future Development and Market Expansion
The new funding will support ongoing platform development and drive expansion both locally within Israel and into select international markets. Future versions of LIV will be customized for additional populations, including children, adolescents, and women, expanding the platform's clinical utility across diverse patient demographics.
Prof. Eyal Zimlichman, Founder and Director of ARC, Chief Transformation and Chief AI Officer at Sheba Medical Center, emphasized the collaborative nature of the innovation: "LIV is a prime example of innovation born from clinicians on the ground, developed through collaboration with additional players in the ecosystem: developers, international tech leaders, and business strategists. LIV's ability to identify, prioritize, and assess mental health conditions with accuracy and empathy makes it a promising tool for health systems worldwide."
The platform represents part of ARC's growing portfolio of digital health solutions, aligning with the innovation center's approach to responsibly developing and integrating AI into global health system workflows. ARC's unique model has already generated exits totaling approximately $1 billion, with profits reinvested to accelerate Sheba Medical Center's AI and data revolution.
