Scottsdale, Arizona-based evolvedMD has raised $34 million to boost its collaborative care model-centered clinical offering.

Announced Monday, the company’s Series B round was led by Sustainable Investing at Goldman Sachs Alternatives. Other existing investors — Conductive Ventures, FCA Venture Partners, Healthworx Ventures, Tectonic Ventures and Waterline Ventures — also joined the round.

“There were a few things that stood out to us as we evaluated the investment opportunity in evolvedMD, including the company’s commitment to care quality, their strong partnership with primary care physicians, and their ability to contract with and scale enterprise relationships,” Jason Slocum, managing director of sustainable investing at Goldman Sachs Alternatives, told Behavioral Health Business. “We were particularly focused on the company’s strong blue chip customer base and their ability to work effectively with very sophisticated primary care practices and health systems.”

The collaborative care model embeds behavioral health clinicians into primary care settings. The primary care clinician collaborates closely with patients and a behavioral health specialist, receiving less frequent support and oversight from a psychiatric provider. evolvedMD provides these clinicians plus technology to support the scaling and coordination of services.

The company has behavioral health providers embedded within more than 200 clinical locations in Arizona, Colorado, Florida, New Mexico and Utah. Some of its larger partners include Banner Health, HonorHealth, VillageMD, Evernorth, Ogden Clinic and Tampa General Hospital. In 2024, it provided services to over 36,000 patients on all types of health plans — including Medicaid, Medicare, and commercial insurance plans.

This model of care and operations is unique within the industry. However, following the adoption of billing codes and corresponding payments by the Centers for Medicare & Medicaid Services, the use of the model and such codes has seen explosive, exponential growth in recent years.

A study by Milliman found that Arizona, evolvedMD’s home state, had the highest or was among the states with the highest levels of adoption.

The centering of a unique clinical care model is a blessing and a burden when pitching investors, according to evolvedMD CEO and co-founder Erik Osland. One of the winning messages included telling investors about the broader shift at play across behavioral health characterized by consolidation, defeating clinical fragmentation and efforts to improve the tracking and coordinate care across physical and behavioral health care. 

“We’re moving from a fragmented, referral-based, outpatient model to one that is fully integrated into primary care — and that’s not a niche trend, it’s the future,” Osland said. “This follows broader trends that we are seeing around managing more conditions in primary care practices, including diabetes and cardiometabolic conditions.

“Investors who understood that macro shift — saw evolvedMD’s model as not just different, but inevitable. Our approach to [the collaborative care model] isn’t a bolt-on; it’s a fundamentally different operating model designed for integration from day one. That gave us a real edge.”

Speaking more broadly about the experience of sourcing this funding round, Osland noted that, while investors remain largely interested in behavioral health, evolvedMD faced “a mix of optimism and realism.”

He said that some investors want platforms that tackle access, care quality and scale challenges, while others have seen early-stage behavioral health companies struggle, prompting greater scrutiny of a potential investment target’s fundamentals. Still, the uniqueness of the collaborative care model required a lot of time educating investors on the model itself, its reimbursement models and operational flow.

The company has grown well over the last few years. It has made several consecutive Inc. 5000 lists of the fastest-growing companies in the U.S. It generated a 255% revenue increase from 2021 to 2023.

In April 2023, evolvedMD raised $10 million after disclosing that it raised a $5.4 million Series A round in May 2022.