Behavioral health AI leader Eleos Health raises $40M Series B round to expand CareOps Automation footprint
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• Led by Menlo Ventures, this funding will help accelerate growth through additional investment in product development and strategic partnerships, which will speed the adoption of AI across behavioral health.
• Eleos grew revenue 3X each of the last three years while developing three new CareOps Automation solutions for group therapy sessions, compliance automation and field-based care.
BOSTON and TEL AVIV, Israel, November 8, 2023-- Eleos Health, the leader in AI for behavioral health, today announced a $40M Series B funding round led by Menlo Ventures, with participation from F-Prime Capital, Eight Roads, Arkin Digital Health, SamsungNEXT and ION. Along with funding from existing investors aMoon and lool ventures, this round brings Eleos Health's total funding to $68M.
In addition to fueling the company's product development plans — which include new and enhanced AI solutions for group therapy sessions, compliance automation, case management, concurrent documentation and value-based care support — this investment will accelerate Eleos Health's hiring efforts, expand its reach to serve more behavioral health providers and segments, and bolster strategic partnership development to bring more EHRs and industry associations into the Eleos ecosystem. The company plans to hire more than 50 people by the end of 2024.
"Experts have documented an urgent and critical need for behavioral health services in the US," said Steve Sloane, partner at Menlo Ventures. "But unfortunately, many people still struggle to access the care they need. Clinician shortages, unsustainable caseloads and administrative burdens make it difficult for providers to meet demand. 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. Their goal is noble: Drive better patient outcomes. And the data shows they are already doing just that!"
Since launching in 2020, Eleos Health — a CareOps Automation platform that leverages specialized AI models to turn behavioral health conversations into automated documentation and clinical insights — has charted an impressive growth path. In the lead-up to the Series B announcement, Eleos:
• Achieved 3x year-over-year revenue growth and is on track to do the same this year.
• More than doubled its customer base, quadrupling the number of providers using an Eleos solution and expanding to serve 23 states.
• Analyzed more than 3 million minutes of therapy sessions year-to-date in 2023, saving more than 300 days of documentation time across all providers and organizations.
• Expanded the product offering to support field-based providers in case management and community outreach, compliance management and group therapy.
• Published two major peer-reviewed research studies, including a randomized controlled trial that linked usage of the Eleos platform to improved outcomes for patients diagnosed with anxiety and depression.
• Grew overall headcount to 95, an increase of 56% year-over-year. Today, women comprise 51% of all team members and 40% of the leadership team at Eleos.
"At Eleos, we believe client-centered care can't happen without a human provider at the center of the therapeutic relationship, which is why we focus on augmenting — not replacing — their ability to engage with and help clients effectively and efficiently," said Eleos CEO and Co-founder Alon Joffe. "We started Eleos after personally witnessing the immense administrative barriers facing clinicians — through our own experiences and those of our loved ones. The providers will always be the heroes of the care story — we're just here to help them write it better and faster."
Dixie Casford, LPC, MBA, MLS, is the Co-CEO of Mental Health Partners, which rolled out Eleos earlier this year. "When we started working with Eleos, they made it clear from the very beginning that our team is important, our experience is important, and improved outcomes for clients and providers is important," Casford said. "They understand that strong relationships are key to transformation, and now that they have the resources to build more of those relationships, they can propel more behavioral health organizations to the cutting edge in client care. This will be crucial as changing attitudes around behavioral health encourage more people to confidently seek the care they need. Innovative tools like Eleos can help providers not only meet this growing demand, but also continue setting a high bar for care quality."
Former VA Secretary and current Eleos board member Dr. David Shulkin believes smart tech innovation is crucial to the overall sustainability of the U.S. healthcare system and the long-term health and wellbeing of providers and consumers alike. "Healthcare has changed so much over the last few decades — more regulations, more compliance requirements and more system complexity — but the quality of the provider-client relationship is still at the core of effective care, especially in a field like behavioral health," Dr. Shulkin said. "And to deliver the most effective care, those providers need the space to focus on the human in front of them — which is why solutions like Eleos are so critical. By alleviating the administrative burden weighing down on providers day after day, these technologies lay the foundation for better care environments, better care experiences and ultimately, better care outcomes."
To learn more about Eleos Health and current career opportunities, visit eleos.health.
About Eleos Health
Eleos Health turns behavioral health conversations into documentation and intelligence that drives better care. Leveraging proprietary, behavioral health-specific large language models (LLMs) created with treatment data and clinical expertise unmatched by any other platform on the market, Eleos accurately interprets, analyzes and documents behavioral health conversations, reducing the operational burden on providers while unlocking objective insights into evidence-based care and the therapeutic alliance. Leadership teams can scale supervision and training while gaining unprecedented visibility into staff activity, caseloads and performance as well as population health. Eleos is the only technology of its kind that embeds seamlessly into electronic health records (EHRs), telehealth tools and existing provider workflows. With Eleos CareOps Automation, behavioral health providers and health plans are setting a new standard for care. Learn more at www.eleos.health.
About Menlo Ventures
Menlo Ventures is a venture capital firm that strives to have a positive impact on everything we do. That's why we support businesses including Carta, Chime, Harness, Poshmark, Pillpack, Pinecone, Roku, Rover, Uber and Warby Parker that are reimagining life and work for the better. Over 47 years, we've grown a portfolio that includes more than 80 public companies, over 165 mergers and acquisitions, and currently have $5.6 billion under management. We invest at every stage and in every sector, with expertise in Consumer, Enterprise and Healthcare. From developing market strategies to creating communities, we provide real impact where entrepreneurs need it most. When we're in, we're ALL IN. Learn more at www.menlovc.com.