Applying for Social Security disability benefits can be a daunting task, particularly for those with mental illness. The process is often lengthy, complex, and frustrating, involving long wait times, confusing paperwork, and high denial rates. These challenges can lead to financial hardship for applicants awaiting decisions. Mindset is a specialized platform designed to streamline the application process for individuals with mental illness and their caregivers. It combines AI automation for operational tasks with expert human support, including experienced attorneys and case managers. This approach aims to improve the chances of application approval, addressing the current 65% rejection rate for initial claims. The platform targets a significant demographic: over 17M Americans living with serious mental illness who qualify for disability benefits. Mindset operates on a contingency basis, charging no upfront fees and only receiving compensation after successful application approval. By simplifying the process and providing tailored support, Mindset seeks to alleviate the stress and uncertainty often associated with disability benefits applications for those managing mental health conditions.
AlleyWatch caught up with Mindset Cofounder and CEO Darren Webb to learn more about the business, the company’s strategic plans, recent round of funding, and much, much more…
Who were your investors and how much did you raise?
We have raised a total of $13M. Our latest round was led by Science Inc., and our other investors include Wellington Management, Tubbs Ventures, Enable Ventures, XYZ, and LivEdge Capital.
Tell us about the product or service that Mindset offers.
Mindset Care is a platform designed to simplify the application process for Social Security Disability benefits for individuals with mental illnesses and their caregivers. By leveraging AI-driven solutions and a team of experienced disability attorneys and representatives, we ensure vulnerable populations receive the support they need to access their entitled benefits efficiently and accurately.
What inspired the start of Mindset?
As a caregiver for a loved one with schizophrenia, I personally went through the process of trying to help them apply for benefits. The process was frustrating, and the help I received seemed stuck in its ways. I just knew there was an opportunity to bring a tech mindset to improve the process.
How is Mindset different?
Mindset Care actively deploys community outreach teams across the United States to help individuals apply for and receive benefits. These teams work directly in homeless shelters, corrections facilities, veteran organizations, food drives, and rehab facilities to educate and assist eligible applicants.
Additionally, many traditional organizations need help to support their constituents due to heavy caseloads, limited expertise, and resource constraints, positioning Mindset Care as an essential resource for delivering these services efficiently and at scale.
By integrating a team of disability representatives and utilizing AI to handle operational tasks, Mindset streamlines and automates the prequalification of prospective claimants. Claimants also benefit from remote court hearings, allowing representatives to represent clients anywhere in the country. Our current partners include Groups Recover, TruConnect, and Colorado Access.
What market does Mindset target and how big is it?
There are 17M Americans who live with a serious mental illness and could qualify for disability benefits of $984 or more per month. The application process, which involves submitting up to three pounds of physical documents, can take up to four weeks to complete, and many applicants often make errors or misunderstand the necessary forms. It is estimated that about 65% of initial disability applications are denied, often due to errors or incomplete information. The Social Security Administration also reported a record backlog of 1.15M applicants in November 2023.
What’s your business model?
We collect a one-time up to 25% fee of claimants’ back-pay up to a maximum of $7,200. If a claim is not awarded, we do not charge the claimant anything. The up to 25% fee is codified by SSA.
How are you preparing for a potential economic slowdown?
We are in an industry where claim applications will likely increase should there be an economic slowdown. We are prepared to process an increase in applications should an economic slowdown occur.
What was the funding process like?
It was a great learning experience that taught me how to explain everything about Mindset and the industry more succinctly. Answering the same questions over and over could be a maddening process, but it was an exercise that made me a better founder. I was able to extract information from very smart investors, many of whom were also successful entrepreneurs who asked thought-provoking questions about my business and industry. I did not take that for granted and wrote down the questions and points to go back and consume.
What are the biggest challenges that you faced while raising capital?
With any early-stage venture, you need to explain why you are the most qualified founder to solve whatever problem you are solving and nobody else. This was my first time raising venture capital, so I’m sure I made all of the rookie mistakes. Having Science as our lead was helpful and essential as they were the round’s anchor and helped legitimize my efforts.
What factors about your business led your investors to write the check?
Our fast growth, our partnerships and distribution channels to reach our claimants, and the ability to show the product we built and what is in the product pipeline were all key levers to get our investors to write checks.
What are the milestones you plan to achieve in the next six months?
Mindset Care is focused on expanding our outreach to prospective claimants and addressing the rising demand for disability assistance. The funding will enable us to expand our partnerships with community and large-scale organizations, including local mental health nonprofits, government agencies, and homeless shelters.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Keep hustling! Go to that event, go to that networking dinner. I met our lead investor at an event as he was leaving and walking out to his Uber. I had 60 seconds to shoot my shot before his car arrived, and it ended up working out. He and his firm decided to invest three weeks later, which enabled me to quit my job and start working on Mindset full-time.
Where do you see the company going in the near term?
We are focused on doing the work, which right now means expanding our outreach efforts and partnerships with organizations that can connect us with more people who would benefit from our work. We will also focus on our technical capabilities and continue to improve them.
What’s your favorite summer destination in and around the city?
I like getting out of the city and visiting the Catskill Mountains, and all it offers, as much as possible.
