Cerebral raised $300 million to make mental healthcare accessible to millions of Americans via telehealth. It worked — 700,000 patients signed up. Then the DEA started investigating whether Cerebral was handing out Adderall prescriptions like candy through 15-minute video calls. Prescribers alleged they were pressured to see too many patients. The company stopped prescribing stimulants. The CEO was replaced. SoftBank's $4.8 billion valuation evaporated. Cerebral proved that telehealth can expand access to mental healthcare — and that expanding access without proper guardrails can create a new category of problems. The road to overprescription was paved with good intentions and venture capital.
Founded
2020
HQ
San Francisco, California
Total Raised
$300 million
Founder
Kyle Robertson
Status
Private (valued at $4.8B peak, now significantly lower)
Website
cerebral.comTHE ORIGIN STORY
Kyle Robertson, a former pharmaceutical executive, founded Cerebral in January 2020 — just before COVID made telehealth mainstream. The timing was perfect: millions of Americans suddenly needed mental health support and could not visit providers in person.
Cerebral grew explosively — reaching over 700,000 patients by 2022. SoftBank invested.
The company was valued at $4.8 billion.
WHAT THEY ACTUALLY DO
Cerebral was an online mental health platform offering therapy and psychiatric medication management via telehealth. Users signed up, were matched with a provider (therapist or prescriber), and received therapy sessions and medication prescriptions through the app.
Revenue came from monthly subscriptions ($85-325/month) and insurance billing. Cerebral prescribed controlled substances including stimulants (Adderall) and benzodiazepines (Klonopin) via video calls.
THE PRODUCTS
Cerebral Therapy (online therapy sessions), Cerebral Medication Management (psychiatric prescriptions via telehealth), Cerebral Self-Care (wellness tools)
HOW THEY GREW
The strategy was to become the largest digital mental health platform in America by combining therapy, medication management, and self-care tools in one subscription. Cerebral also planned to expand into other chronic conditions.
THE HARD PART
The DEA investigation. In 2022, the DEA began investigating Cerebral for potentially overprescribing controlled substances — particularly stimulants like Adderall — via brief video consultations.
Multiple reports alleged that Cerebral's model prioritized volume over proper psychiatric evaluation. Prescribers reported being pressured to see too many patients per day.
The investigation led to executive turnover, patient safety concerns, and a massive trust crisis. Cerebral stopped prescribing stimulants and benzodiazepines.
MONEY TRAIL
Series B
2021 · Led by
$127M raised
Series C
2022 · Led by
$300.0B raised
DEA Investigation
2022 · Led by
$0 raised
WHO BACKED THEM
SoftBank Vision Fund 2, Access Industries, WestCap, Oak HC/FT
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