Eleos Health has raised $40 million in its Series B round, giving the AI-focused startup a total of $68 million raised since its founding in 2020.
The company uses AI to quantify therapy sessions, converting live audio into documentation and care quality tracking data. Menlo Park, California-based venture capital firm Menlo Ventures led the funding round.
The new capital will pay for product development, staffing expansions and adding new electronic health records and industry associations to its system. Eleos said it will hire more than 50 people by the end of 2024.
It employs 95 people today and has offices in Boston and Tel Aviv.
“We started Eleos after personally witnessing the immense administrative barriers facing clinicians — through our own experiences and those of our loved ones,” Eleos Health CEO and co-founder Alon Joffe said in the release. “The providers will always be the heroes of the care story — we’re just here to help them write it better and faster.”
Eleos Health seeks to deliver objective care quality metrics and documentation automation to the typically tech-challenged behavioral health space. In doing so, Eleos hopes to win over providers with promises of diminished administrative burdens, a top contributor to burnout among mental health clinicians.
Eleos Health raised $20 million in its Series A in April 2022.
“Clinician shortages, unsustainable caseloads and administrative burdens make it difficult for providers to meet demand,” Steve Sloane, partner at Menlo Ventures, said in the release. “Eleos Health will close this gap with a platform that combines unparalleled clinical expertise and an advanced AI platform built on a foundation of LLMs specific to behavioral health.”
The use of AI to listen in on therapy sessions is not without controversy. Many critics fear that such tools violate the therapists’ ethics of privacy and trust. Others wonder at the unintended consequences of such tools.
Eleos Health had 3 million minutes of therapy sessions in 2023 alone. The company claims to have saved 300 days’ worth of documentation time across its client base.
Other behavioral health companies have recently announced funding rounds.
Near the end of October, video game-based group mental health support startup Hero Journey Club raised $14.6 million. At the beginning of last month, therapy and patient matching platform Headway raised $125 million.