Mental Health Startup Octave Health Group Lands Another $22 Million

San Francisco-based behavioral health provider Octave Health Group has raised $22 million in new capital, according to public documents.

This comes roughly two years after the provider closed a $20 million Series B funding round. The latest infusion of capital brings the company’s total funding amount to roughly $56.4 million, according to Crunchbase.

Founded in 2018 by Sandeep Acharya, who previously served as One Medical’s vice president of strategy, the company offers individual therapy, couples therapy, family therapy and workshops. It treats several behavioral health conditions, including depression, ADHD, bBipolar disorder, chronic insomnia, eating disorders and substance use disorders.

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Behavioral Health Business has reached out to Octave for a comment.

Octave operates in California, Connecticut, Florida, New Jersey, New York, Texas and Washington, D.C. Patients can access services in-person or virtually.

Octave works with several major insurers, including Aetna, Anthem and health net. While the company has not disclosed its most recent investors, its past investors include venture capital firms Greycroft, Obvious Ventures and Felicis Ventures.

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Behavioral health investment has begun to slow down from its peak in 2021, and this is particularly true in the digital behavioral health sector. In 2022, investors poured $2.1 billion into digital behavioral health startups, less than half of the $4.8 billion raised by startups in 2021, according to ​​Rock Health.

And 2023 is off to an even slower start than 2022. In the first quarter of the year digital health investment plummeted to pre-pandemic levels.

Still, the need for behavioral health services is at an all-time high, with rates of depression and anxiety skyrocketing in the wake of the COVID-19 pandemic.

Several behavioral health startups have been able to continue to raise capital. For example, in April, digital mental health company Spring Health raised $71 million in capital, which brought its valuation to $2.5 billion.
Additionally, pediatric behavioral health provider Bend raised $32 million in capital in March.

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