(Bloomberg) — Laurence Tosi’s WestCap Management is considering selling shares of Cerebral Inc., one of its biggest wagers, seeking to trim its position in the mental health startup that’s facing a wave of scrutiny, according to people familiar with the matter.
(Bloomberg) — Laurence Tosi’s WestCap Management is considering selling shares of Cerebral Inc., one of its biggest wagers, seeking to trim its position in the mental health startup that’s facing a wave of scrutiny, according to people familiar with the matter.
WestCap, which first invested in Cerebral in 2020 and holds a seat on the board, had already slashed its valuation by half in the quarter ended June, Bloomberg reported earlier.
“We are not marketing and have never marketed our shares,” a spokeswoman for WestCap said in a statement.
She said the firm received “one inbound” offer and declined.
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A spokesman for Cerebral declined to comment.
Tosi, who previously served as chief financial officer at Blackstone Inc.
and Airbnb Inc., founded WestCap in 2019 and has focused on marketplace-oriented startups, funding several buzzy ventures including Celsius Network and Klarna. The growth equity firm has struggled, however, in this year’s tech rout.
Cerebral has faced problems of its own.
The company is under increased scrutiny around its online mental-health platform, and faces a federal investigation into its prescribing practices. The SoftBank Group Corp.-backed startup said in May that it would stop writing new prescriptions for drugs that treat attention deficit/hyperactivity disorder, such as Adderall and Ritalin.
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–With assistance from Polly Mosendz.
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