Substance use disorder (SUD) provider Eleanor Health has raised $22.23 million for its value-based care platform, according to an SEC filing.
This new infusion of capital brings the company’s total raise to roughly $104 million. According to the SEC filing, the Waltham, Massachusetts-based provider plans to sell up to $30 million in equity in this funding round.
Behavioral Health Business has reached out to Eleanor Health for comment.
Eleanor is a hybrid SUD and mental health care provider that uses a value-based care payment model. It provides virtual and in-person treatment for people living with addiction. Eleanor allows patients to access medication-assisted treatment (MAT), therapy and peer support. The provider has locations in Louisiana, Massachusetts, New Jersey, North Carolina, Ohio, Texas and Washington.
It currently has 17 value-based care contracts in seven state markets, including with three national payers.
In January, Eleanor named Sevita vet William McKinney its new CEO. This news came roughly five months after Eleanor’s co-founder and former CEO, Corbin Petro, announced her plans to step down.
But the leadership change isn’t the only recent development for Eleanor. It announced a new partnership with virtual mental health provider Spring Health in October. As part of the partnership, Spring Health’s patients can access SUD care at Eleanor.
The deal also gives us a hint of Eleanor’s direction in the future.
“We plan to enter into more partnerships like this one with Spring that will enable us to serve more communities and help people affected by addiction live amazing lives,” Nzinga Harrison, Eleanor Health co-founder and CMO, previously told BHB.
Eleanor has caught investors’ attention in the past. In 2022, it raised $50 million in a Series C funding round.
Still, it hasn’t been all smooth sailing for Eleanor over the past few years. In late 2022, the company reduced its staff by 18% to 20%.
This new funding round comes at a time when many digital health companies, including virtual behavioral health startups, are struggling to raise new capital. In 2023, digital health companies raised roughly $10.7 billion, the lowest level since 2019, according to Rock Health.
Despite this funding slump, several behavioral health startups have been able to raise new funds over the last year. For example, youth mental health provider Blackbird raised $17 million earlier this month, Headlight landed $18 million in January and ABA company Forta Health raised $55 million at the beginning of the year.
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