Battery Ventures, a global investment firm with a background funding health care startups, has announced the creation of a new technology platform to help behavioral health and human services providers improve their operational efficiencies.
The new company, Behavioral Holdings, is a cloud-based software platform designed for mental health centers and special education organizations, as well as providers in spaces such as addiction treatment, autism and intellectual and developmental disabilities (I/DD) and children and family services.
Given the mom-and-pop nature of the behavioral industry on top of the low reimbursement rates providers typically receive for their services, organizations in the space need all the help they can get when it comes to improving operational efficiencies. Behavioral Holdings aims to support them by streamlining processes with technology so providers can better deliver on their missions.
Specifically, Behavioral Holdings will start by giving customers access to electronic health records (EHR), human resources (HR) and payroll solutions created by two companies in which Battery Ventures holds strategic investments — Welligent and DATIS HR Cloud.
Based in Norfolk, Virginia, Welligent specializes in the manufacturing of cloud-based, EHR and other industry-specific workflow software, while Tampa, Florida-based DATIS provides cloud-based, HR and payroll software. Both companies’ existing products are specifically designed for the behavioral health providers.
The organizations will continue to operate independently as their own brands under Behavioral Holdings’ corporate umbrella. Plus, the company will look to continue growing organically and by acquisition, according to a press release announcing the news.
Mark Belles — the former CEO of the higher education media outlet Inside Higher Ed and previous COO of the health care software Relias — will lead Behavioral Holdings as its chief executive. Meanwhile, Jason Parkman — the executive chairman of Austin, Texas-based corporate management software company Mitratech — is joining the new venture as board chairman.
Chelsea Stoner, a Battery Ventures general partner, will also join Behavioral Holdings’ board.
“The Covid-19 pandemic has accelerated the digital-transformation process at many health-focused companies, spurring them to upgrade technology to accommodate new trends like telehealth and mobile access to health records,” Stoner said in a press release announcing the news. “Behavioral Holdings, as well as our core partners Welligent and DATIS, are well-positioned to benefit from this trend, and can make a big difference in the services these companies can provide.”
Headquartered in Boston, Battery Ventures has held investments in over 300 companies since its founding in 1983. The firm most recently led the Series C funding round for mental health and wellness platform Modern Health, which recently became one of the few unicorns in the behavioral health space with its valuation of $1.17 billion.