Brave Health, a virtual behavioral health provider aimed at people on Medicaid, raised $10 million in Series B funding, the company announced Tuesday.
City Light Capital, Union Square Ventures and Able Partners led the funding round. The company has brought in nearly $21 million in total financing since its founding in 2017.
Brave Health plans to use the money to expand its operations. The company has grown quickly since launching two years ago. It serves more than 65 million covered lives in 10 states: Alabama, Florida, Georgia, Illinois, Kentucky, Michigan, New York, North Carolina, Ohio and Texas.
"As demand for behavioral health care continues to grow, the gap between people who need services and those who are receiving services has continued to widen, especially for those with Medicaid," Brave Health CEO and co-founder Anna Lindow said in a news release.
The company aims to lower healthcare costs by getting patients more involved in their care and working with Medicaid case managers, providers and Medicaid plans. Brave Health received more than 11,000 referrals from case managers, primary care providers and hospitals during the first 10 months of the year. Two in three patients chose to get behavioral care from Brave Health, the company claimed in a news release.
"One large, national managed behavioral health organization reported that patients who had at least one encounter with Brave Health had 90% fewer readmissions and 66% lower costs in approximately a one-year period," the news release said.
Josh Cohen, managing partner and co-founder of City Light Capital, has joined Brave Health's board of directors as a strategic advisor.
Investors have flocked to digital health companies that provide mental and behavioral health services to people on Medicaid.
Workit Health raised $118 million in Series C funding for its telehealth addiction program, the company announced last week.
In addition, CityBlock Health hauled in $400 million in Serie D funding during the third quarter, making it one of the largest digital health investments by venture capital this year, according to data from Digital Health Business & Technology. The company provides people in lower-income communities with primary care, behavioral health and other services.