Jun 21, 2023

Octave – an innovator in outcomes-focused behavioral health care – announced that it has secured $52 million in Series C funding to drive the national expansion of evidence-based, in-network therapy services. The funding 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 grew rapidly and today serves 18 million covered lives across 7 states: California, Connecticut, Florida, New Jersey, New York, Texas, and Washington, D.C. The company’s value-based care model has led to first-of-its-kind partnerships with major national payers. This new funding round 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 funding round brings the company’s total funding to $86 million. 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 this year, according to Rock Health. And in the current economic climate, investors are looking for strong financial models and sustainable growth strategies to dictate success. KEY QUOTES: “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.” “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. Our team is excited to partner with them to transform mental health care.” — Sandeep Acharya, Co-Founder and CEO of Octave “Cigna Ventures collaborates with innovative, forward-thinking companies who have the ability to solve healthcare’s biggest challenges and improve health outcomes for many. We’ve collaborated with Octave since 2021 and believe in what the company is doing to set a new standard for behavioral care delivery.” — Craig Cimini, Head of Cigna Ventures “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. We are impressed by Octave’s rapid expansion, strong clinical focus, and highly experienced team.” — Eric Snyder, PhD, Partner in the Venture Investments group at Novo Holdings “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.” — Avidity Partners’ Jacob Garfield