March 3 (Reuters) - Sequoia Capital-backed Grow Therapy has raised $150 million in fresh funding, valuing the mental health startup at $3 billion, it said on Tuesday.

The Series D round, which brings its total funding to $328 million, was led by existing investors TCV and Goldman Sachs Alternatives’ growth equity business, with new investors BCI and Menlo Ventures joining.

Rising rates of anxiety and mood disorder diagnoses among teens and young adults have pushed mental health to the forefront in recent years, with U.S. national surveys showing high levels of sadness, depression and related challenges among young people.

Founded in 2020, Grow Therapy connects clients with licensed therapists and psychiatrists, offering both in-person and virtual therapy. It has partnered with more than 125 health insurers that together provide access to 220 million people, the company said.

The startup is also integrating artificial intelligence technology into its platform.

"Since launching in February 2025, Grow’s data found that provider documentation time has dropped by nearly 70%, while exceeding manual note accuracy. We also offer clients between-session support, such as AI-powered journaling that prompts reflective writing exercises," Kristina McPherson, spokesperson, Grow Therapy, told Reuters.

The company competes with startups such as Andreessen Horowitz-backed Headway and Thoma Bravo-backed Alma, as well as larger players including Teladoc-owned BetterHelp, which have also raised significant sums to expand mental health services.

Venture capital firm Sequoia led Grow Therapy's $88 million Series C round in April 2024.

(Reporting by Pragyan Kalita in Bengaluru; Editing by Sahal Muhammed)

((Pragyan.Kalita@thomsonreuters.com;))