Amidst Global Mental Health Challenges, ARC’s ‘Mentaily’ Raises $3M in Seed Funding to Transform Psychiatric Intervention Through AI-Powered Diagnosis and Support

Mentaily, the creator of AI-powered tools for mental health assessment, triage, and diagnosis of mental disorders, announced the closing of a $3 million seed funding round. The round was led by both a US-based family and Israeli-family based offices, with participation from impact funds The Rashi Foundation and Sheatufim, as well as prominent digital health angel investors.

Founded in 2024 within Sheba’s ARC Innovation Center, Mentaily aims to address complex mental health needs emerging in times of crisis and trauma. The company’s first AI-powered product, LIV, simulates clinical psychiatric intake sessions and helps diagnose psychological distress and mental illness, with high accuracy. 

Mental health conditions are on the rise globally, yet support remains limited. 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, highlighting the urgent need for new technologies to augment existing mental health interventions.

The AI platform supports multilingual, natural-language conversations through voice or text, optionally featuring AI avatar to deliver a personalized and scalable approach to mental health triage. The technology was created as a joint effort between ARC (Accelerate, Redesign, Collaborate) Innovation Center and the Drora and Pinchas Zakai Department of Psychiatry at Sheba Medical Center, along with Microsoft and KPMG.

In addition to serving the general population, LIV supports security forces through collaborations with the Directorate of Defense Research & Development (DDR&D) and Israel’s Ministry of Defense—addressing the needs of a population often affected by high stress and prolonged trauma. Future versions of the platform will be customized for additional populations, including children, adolescents, and women.

Already in use within hospitals, HMOs, rehabilitation centers, and government organizations across Israel, the new funding will support ongoing development and drive expansion both locally and into select international markets.

Mentaily was founded by Iris Shtein, who serves as the company’s CEO, Guy Yachin, a serial Israeli-American entrepreneur, and senior clinicians from Sheba Medical Center: Prof. Mark Weiser, Dr. Asaf Caspi, and Dr. Daniel Cohen. The company is actively recruiting to support its expansion.

“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. Our scalable platform not only enhances access and accuracy, but also empowers systems to prioritize care where it’s needed most, transforming psychiatric triage at a national and global level.”

“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,” said Prof Eyal Zimlichman, Founder and Director of ARC, Chief Transformation and Chief AI Officer at Sheba Medical Center. “LIV’s ability to identify, prioritize, and assess mental health conditions with accuracy and empathy makes it a promising tool for health systems worldwide. Another successful digital health platform in our growing portfolio, the solution is well aligned with ARC’s multi-faceted approach of responsibly and effectively developing and integrating AI into workflows of health systems globally.”