Better Therapeutics

Better Therapeutics developed prescription software for treating cardiometabolic diseases.⁴ The company went public through a SPAC merger with Mountain Crest Acquisition Corp. II in 2021, valuing it at $187 million.²¹²¹³ Better Therapeutics shut down in March 2024.¹⁵⁷

Timeline

Money raised

Better Therapeutics raised $150.5 million in total funding.⁴ Better Therapeutics expected to raise $113 million through the SPAC deal, including $50 million from private investors Farallon Capital Management, RS Investments, Sectoral Asset Management, and Monashee Investment Management.¹² In July 2023, Better Therapeutics announced the completion of an additional $6.7 million in net proceeds from multiple equity transactions.¹⁴ Better Therapeutics filed a Form D on 2023-08-11 with a total offering amount of $2,114,998.¹⁹ Better Therapeutics filed a Form D on 2024-01-23 with a total offering amount of $250,000.²⁰ Better Therapeutics reached a $1 million settlement with a shareholder to end a Delaware Chancery Court suit challenging its take-public merger.¹⁶ The Delaware Chancery Court approved a $325,000 fee award for the plaintiff's attorneys.¹⁵

Investors named in the sources: Farallon Capital Management¹², RS Investments¹², Sectoral Asset Management¹², Monashee Investment Management¹².

What happened

Better Therapeutics developed prescription software for treating cardiometabolic diseases.⁴ The company was founded in 2015 in California.⁶ Better Therapeutics had 50-100 employees.⁶ The company was developing digital therapeutics for patients with chronic conditions.¹² Better Therapeutics planned to go public through a SPAC merger with Mountain Crest Acquisition Corp. II.¹²

Better Therapeutics expected to raise $113 million through the deal, including $50 million from private investors Farallon Capital Management, RS Investments, Sectoral Asset Management, and Monashee Investment Management.¹² The company's stock traded under the ticker BTTX.⁶ Better Therapeutics closed at $1.76 per share on August 23, 2022.⁸ The company's key to standing out in the PDT space was clinical evidence, according to Karbe.⁸ Better Therapeutics conducted clinical trials for BT-001, a digital therapeutic intended to help patients with type 2 diabetes improve glycemic control.⁶

A clinical trial of BT-001 started on February 14, 2022.⁶ Another clinical trial of BT-001 started on March 7, 2022.⁶ A feasibility study of BT-NCBT-00x for NAFLD and NASH started on April 10, 2022.⁶ Better Therapeutics had preclinical drug candidates BT-002 for hypertension, BT-003 for dyslipidemias, and BT-004 for nonalcoholic steatohepatitis.⁶ By September 2023, Better Therapeutics had lost more than 90% of its initial value since going public.³

In July 2023, Better Therapeutics announced the completion of an additional $6.7 million in net proceeds from multiple equity transactions.¹⁴ Better Therapeutics filed a Form D with the SEC on August 11, 2023, for a total offering amount of $2,114,998.¹⁹ Better Therapeutics filed a Form D with the SEC on January 23, 2024, for a total offering amount of $250,000.²⁰ Better Therapeutics shut down in March 2024.¹⁵⁷ Better Therapeutics was another digital therapeutics company that shut down in 2024.⁵

A lawsuit was filed by investor John Solak on April 28, 2023, over the SPAC merger.¹⁷ The lawsuit alleged misleading statements, failure to disclose, and breach of fiduciary duty.¹⁷ The defendants in the lawsuit included Suying Liu, Dong Liu, Nelson Haight, and Todd Milbourn.¹⁷ Better Therapeutics reached a $1 million settlement with a shareholder to end the Delaware Chancery Court suit challenging its take-public merger.¹⁶ The Delaware Chancery Court approved the $1 million cash settlement on October 24, 2025.¹⁵

The court also approved a $325,000 fee award for the plaintiff's attorneys.¹⁵ The settlement resolved claims that investors were misled in connection with the merger with Mountain Crest Acquisition Corp. II.¹⁷ The class period for the settlement was from September 7, 2021, to October 28, 2021.¹⁷ Better Therapeutics was described as a defunct telehealth provider in a Law360 article.¹⁶ Better Therapeutics was listed among failed biotech startups that shut down after raising $150.5 million.⁴

The company's website was www.bettertx.com.⁶ Better Therapeutics was headquartered in San Francisco, California.⁴ The company's founder was David Perry.⁴ Better Therapeutics was a public company traded on the OTC market under the ticker BTTX.⁶ The company had 3 drugs associated with it: BT-002, BT-003, and BT-004.⁶

Better Therapeutics had 5 clinical trials associated with it.⁶ The company had 0 patents associated with it.⁶ Better Therapeutics had 3 literatures associated with it.⁶ The company had 109 news articles associated with it.⁶ Better Therapeutics was included in a list of digital health companies that delisted in 2024.¹

Better Therapeutics shut down in March 2024, according to a newsletter.¹ Better Therapeutics was mentioned as a digital therapeutics company that shut down in 2024 in an article about Click Therapeutics.⁵ Better Therapeutics was mentioned in an Endpoints News headline about shutting down.⁷

Legal outcomes

• filedInvestor John Solak filed a lawsuit on April 28, 2023, claiming the SPAC transaction created a windfall for Mountain Crest Capital LLC insiders.¹⁵¹⁷
• filedThe lawsuit alleged misleading statements, failure to disclose, and breach of fiduciary duty.¹⁷
• settledBetter Therapeutics reached a $1 million settlement with a shareholder to end the Delaware Chancery Court suit challenging its take-public merger.¹⁶
• settledThe Delaware Chancery Court approved the $1 million cash settlement on October 24, 2025.¹⁵
• settledThe court also approved a $325,000 fee award for the plaintiff's attorneys.¹⁵

Where the founders are now

David Perry was listed as a founder of Better Therapeutics.⁴

Sources

1. ☠️ Why healthcare startups fail, halletecco.substack.com, 2 years ag
2. Better Therapeutics Coverage - MedCity News, MedCity News
3. Bubble bursts: 2021 health tech IPOs and SPACs lose value, burn cash, STAT, 2023-09-27
4. Failed Biotech Startups — 180 Biotech Companies That Shut Down, VCBacked
5. [Updated] Click Therapeutics Raises $50M, Reportedly Cuts 27% of Workforce, Behavioral Health Business, 2026-04-13
6. Delving into the Latest Updates on Better Therapeutics, Inc. with Synapse, synapse-patsnap-com.libproxy1.nus.edu.sg
7. OcuTerra’s diabetic retinopathy drug fails PhII; Better Therapeutics to shut down, Endpoints News, Mar 14, 20
8. Better Therapeutics to tackle type 2 diabetes with app - San ..., bizjournals.com, Aug 23, 20
12. Better Therapeutics plans to go public through SPAC merger  - MedCity News, MedCity News, 2021-04-11
13. Better Therapeutics to Become Publicly Traded ..., businesswire.com, Apr 7, 202
14. Better Therapeutics Reports Second Quarter 2023 ..., firstwordpharma.com, Aug 10, 20
15. Better Therapeutics SPAC Deal Suit Ends in $1 Million Settlement, news.bloomberglaw.com, 2025-10-24
16. Better Therapeutics Settles SPAC Suit In Del. For $1M - Law360 Bankruptcy Authority, law360.com, Jul 11, 20
17. 11th.com | Investor Funds Recovery, 11th.com
19. SEC Form D filing, Better Therapeutics, Inc., SEC EDGAR, 2023-08-11
20. SEC Form D filing, Better Therapeutics, Inc., SEC EDGAR, 2024-01-23

How this case file was put together

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