Octave Raises $52M in Series C Funding to Expand In-Network Mental Health
Octave, an innovator in outcomes-focused behavioral health care, today announced that it has secured $52 million in Series C funding to drive national expansion of evidence-based, in-network therapy services. The round was led by Cigna Ventures, Novo Holdings, and Avidity Partners, and joined by all existing institutional investors, Health Velocity Capital, Greycroft Partners, Felicis Ventures, Company Ventures, and Obvious Ventures.
Since launching in 2018, Octave has grown rapidly and today serves 18 million covered lives across seven states: California, Connecticut, Florida, New Jersey, New York, Texas, and Washington, D.C. The company’s innovative value-based care model has led to first-of-its-kind partnerships with major national payers.
The new funding will accelerate Octave’s expansion to more regions later this year and all 50 states in 2024, as well as the release of new technology products to serve payer and provider partners. This latest round of investment brings the company’s total funding to $86 million.
“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, Co-Founder and CEO of Octave.
“I’m grateful to our new investors, all of whom bring a wealth of experience from scaling healthcare companies across the private and public markets, for recognizing the unique value we bring,” Acharya said. “Our team is excited to partner with them to transform mental health care.”
Increased Investment Focus on Sustainable Growth
Behavioral health investments decreased 56% from a high of $4.8 billion in 2021 down to $2.1 billion in 2022, with the downward trend continuing in the first quarter of 2023, according to Rock Health. In the current economic climate, investors are looking for strong financial models and sustainable growth strategies to dictate success.
“Cigna Ventures collaborates with innovative, forward-thinking companies who have the ability to solve healthcare’s biggest challenges and improve health outcomes for many,” said Craig Cimini, Head of Cigna Ventures. “We’ve collaborated with Octave since 2021 and believe in what the company is doing to set a new standard for behavioral care delivery.”
“Octave’s patient-centric model, which increases access to mental health while balancing provider objectives aligns with our strategy to invest in the health and sustainability of our communities,” said Eric Snyder, PhD, Partner in the Venture Investments group at Novo Holdings. “We are impressed by Octave’s rapid expansion, strong clinical focus, and highly experienced team.”
“We are excited to invest in Octave and support their innovative approach to delivering quality mental health care. We look forward to supporting Octave as they expand their reach, enhance their technology offering, and make a lasting impact on patient’s lives,” said Avidity Partners’ Jacob Garfield.