In the Wake of Oct. 7, Israeli Startups Address Mental Health Challenges

Eighty-five percent of mental health startups are in the early development stages, compared to 65% in the general healthcare sector.

By Shula Rosen, United with Israel

The tragedy of October 7th has had far-ranging effects; virtually everyone in Israeli society has been affected by the event and its aftermath.

It is estimated that 10 million people are experiencing trauma simply by living through the event.

Fortunately, the Startup Nation is meeting the challenge with a crop of mental health startups providing innovative solutions to trauma therapy, self-care and access to mental health resources.

Mental health startups are recent arrivals to Israel’s well-established healthcare sector; 85% of these companies are in early development stages, compared to 65% in the general healthcare sector.

Currently, 120 startups in Israel address mental health and are inspiring investor confidence. The amount invested in Israeli mental health startups increased by 66% to $123 million.

To meet the needs of these startups and investors, Startup Nation Central, Israel’s Collective Action for Resilience (ICAR) and Bezyl have established the Mental Health Field Landscape for 2025.

The landscape initiative aims to develop and scale solutions grounded in research and technology to address the increased need for mental health services, particularly trauma therapy.

The landscape divides the companies and their solutions into self-care, managed care platforms, workflow automation and mental health research.

One prominent focus area is self-care, which provides diverse solutions such as biofeedback, peer support and AI therapy.

Another is mental health research, which deals with early diagnosis, personalized psychotherapy and machine learning for treatment. Managed care platforms make it easier for patients and therapists to connect. Workflow automation streamlines therapists’ administrative duties so they can focus on delivering care.

ICAR co-founder Gila Tolub describes the need to bring together the fragmented elements of the mental health ecosystem—including hospitals, NGOs, mental health organizations, and philanthropists—and address solutions to society’s mental health challenges.

Tolub said, “We do not have a choice. We will need technology to help all the people who need help.”

She added, “The world is looking at Israel as a petri dish for mental health. I think Israel didn’t become a leader in defense technology or cybersecurity out of pure luck. Necessity is the mother of innovation, and I think mental health technology is the next big thing.”

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