The company will use the funds to release new offerings to providers and payers, expand its reach nationally in 2023 and establish a presence in all 50 states in 2024.
Hybrid value-based behavioral healthcare provider, Octave, announced it had scored $52 million in Series C funding, bringing its total raise to $86 million.
Cigna Ventures, Novo Holdings and Avidity Partners led the round, with participation from existing investors Greycroft Partners, Health Velocity Capital, Obvious Ventures, Company Ventures and Felicis Ventures.
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WHAT IT DOES
Octave offers in-person and virtual behavioral healthcare, with personalized care plans for couples, individuals and families. The company is an in-network provider of employer-sponsored insurance plans through several payers. Its brick-and-mortar facilities are located in California, Connecticut, Florida, New Jersey, New York, Texas and Washington, D.C.
The San Francisco-based company will use the funds to expand its reach nationally this year, establish a presence in all 50 states by 2024 and release new technology-focused products for providers and payers.
“The demand for mental health services is higher than ever, but our mission is not just to ensure that care is accessible, but actually effective for the patient and sustainable for the mental health provider. With this raise, we’re aiming to move beyond directly facilitating care to trying to influence how the whole system functions – how care is paid for, how it is found, and the tools we use to support it,” said Sandeep Acharya, cofounder and CEO of Octave, in a statement.
MARKET SNAPSHOT
Octave garnered $20 million in Series B funding to expand its business operations in 2021 – and $11 million in Series A funding in 2019.
Another employer-focused hybrid behavioral healthcare provider is Lyra Health, which scored a whopping $235 million in Series F funding last year. In 2021, it raised $200 million in financing in June and $187 million in a Series E round in January.
Spring Health also provides digital mental health services and in-person psychiatry sessions. It announced it raised $71 million in April, boosting its valuation to $2.5 billion. The funding round came just two years after the company scored $190 million in Series C funding.
