Exclusive: NeuroFlow gathers $25M in SEMCAP-led growth capital
NeuroFlow, a Philadelphia-based provider of behavioral health integration technology, has collected $25 million in growth capital led by SEMCAP Health, the parties tell Axios.
Why it matters: NeuroFlow's technology empowers stakeholder collaboration to address gaps in care and improve care navigation created by behavioral health's massive supply-demand imbalance.
Details: The capital infusion will support growth across its sales and business development teams to build out its referral network; boost marketing spend; support investment into data privacy and security; and product development in Spanish and other languages.
How it works: NeuroFlow provides standardized behavioral health assessments to identify a broad range of behavioral health conditions, tracks progress and risk levels by utilizing patient engagement, and equips care teams with AI-driven clinical decision support for care navigation.
- Its enterprise workflow and care management software also aims to reduce administrative burdens for its payor, provider and government customers — and can plug into existing workflows and systems.
- Its referral network includes behavioral health companies including Array, LifeStance Health, Marvin, and Brightside Health and AbleTo.
- Customers include Magellan Health, Health First, Bozeman Health, the Department of Defense, among others.
By the numbers: The SEMCAP-led capital infusion brings NeuroFlow's total funding to date to $57 million.
- The company in January 2021 raised a $20 million Series B round led by Magellan.
- NeuroFlow over the last year has expanded its reach to 15 million supported lives, from 2 million.
What they're saying: "In this category and niche we've found, there's no reason we can't be ubiquitous across the ecosystem," COO and co-founder Adam Pardes says. "We are the glue that connects a lot of point solutions for different care providers."
Context: SEMCAP Health is an investment platform of SEMCAP, a Wayne, Pennsylvania-based growth equity investor focused on health care, education and food and nutrition.
State of play: This is the second behavioral health-related investment this week with a "niche" model aimed at a massive total addressable market.
- Brave Health, a virtual care startup dedicated to mental health care for Medicaid members, raked in $40 million in Series C funding led by Town Hall Ventures.
The bottom line: While digital health funding has taken a tumble, the money is still showing up for players with a vast growth trajectory and proven impact on the health care ecosystem.