Behavioral health care provider Forge Health announced Monday the company has raised $11 million to expand services and grow value-based care partnerships.
New York state-based Forge Health landed the seven-figure growth investment in a fundraising round led by New York City-based venture capital firm HC9 Ventures. Forge Health aims to bring its blend of digital and in-person clinics to more people seeking outpatient mental health and substance use disorder treatment services.
Company Co-Founder and CEO Eric Frieman said in a statement that America’s current behavioral health care is “broken.”
“Care is extremely fragmented, emphasizes point solutions, and fails to properly address the whole person,” he said. “The need for accessible, affordable, and effective care is more important now than ever.”
His startup’s funding announcement comes on the heels of major investments nationwide in behavioral health point solutions and platforms. Digital mental health startups collectively raised $5.1 billion last year, creating billion-dollar mental health unicorns. So far in 2022, the record fundraising continues: earlier this week, Massachusetts-based addiction and mental health care provider Eleanor Health closed a $50 million Series C funding round.
Forge Health initially launched in 2016 with seed funding from San Francisco-based venture capital firm Montage Ventures, according to data from crunchbase.com.
Since then, Forge Health has formed partnerships with 30 private and public health plans and today serves 270,000 members under its value-based model, per the company’s Monday statement. Currently, it operates in-person clinics in New Jersey, New York, Pennsylvania, Massachusetts, New Hampshire, and Virginia.
With $11 million in new funding, Forge Health stated it plans to pursue more partnerships with health plans, health systems, private and public employers, and Accountable Care Organizations (ACOs).
HC9 Partner Richard Lungen said on Monday that his venture capital firm was “excited” to support Forge Health and accelerate the startup’s growth to, “not only drive enterprise value creation but, more importantly, positively impact the lives of many Americans who are in dire need of Forge’s whole-person care.”
Written By Sloane Airey
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