Israeli healthtech startup Mentaily has raised US$3 million in a seed funding round to enhance its AI-driven mental health assessment platform, Liv.

The funding was led by a US-based family office, with contributions from Israeli family offices, impact funds like The Rashi Foundation and Sheatufim, and angel investors in the digital health sector.

Liv uses voice and text to simulate psychiatric intake sessions with natural language processing and an optional AI avatar.

The platform aims to address the shortage of mental health professionals by offering scalable, personalized assessments developed with partners like Microsoft and KPMG.

The new funding will help Mentaily accelerate development and expand both locally and globally.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ AI in mental health has evolved from experimental to crisis-driven innovation

Mental health technology has undergone a remarkable evolution since the creation of ELIZA, the first AI therapy chatbot from 1966 that used simple pattern matching to simulate Rogerian therapy conversations 1.

Today’s solutions like Mentaily’s LIV platform represent a significant advancement, integrating natural language processing and clinical validation to conduct comprehensive psychiatric assessments with high accuracy.

This evolution reflects a broader pattern in healthcare AI adoption, which typically accelerated during crises, such as how the COVID-19 pandemic spurred virtual care adoption 2.

Israel’s mental health startup ecosystem has grown significantly, from just 27 companies in 2017 to 117 in 2025, with the October 7th attack serving as a catalyst for innovation addressing immediate trauma needs 3.

The urgent response to national tragedy mirrors historical patterns where healthcare innovations often emerge from immediate necessity. However, Mentaily faces the challenge of balancing rapid deployment with clinical validation.

2️⃣ Mental health technology is tackling a global professional shortage crisis

Mentaily’s emergence addresses a critical global challenge: the United States faces a projected shortage of 15,600 psychiatrists by 2025, with 120 million Americans living in areas lacking adequate mental health services 4.

In Israel, the situation is particularly dire, with mental health receiving only 5.2% of the healthcare budget (compared to 10-16% in similar high-GDP countries), resulting in six-month wait times for psychiatric appointments 5.