Cigna Ventures, Novo Holdings, Avidity Partners co-led round

Cigna Ventures, Novo Holdings and Avidity Partners co-led a $52 million Series C funding round for San Francisco-based digital behavioral health startup Octave, bringing the total raised to $86 million.

Existing investors Health Velocity Capital, Greycroft Partners, Felicis Ventures, Company Ventures and Obvious Ventures also participated in the round.

The fresh capital will fuel the virtual care provider’s expansion into all 50 states by 2024, according to the firm.

Led by CEO Sandeep Acharya, the company launched as a clinic-based company with brick-and-mortar locations in New York and California. But its capabilities quickly evolved to include virtual care and outcome tracking. Its provider network treats several behavioral health conditions, including depression, ADHD, bipolar disorder, chronic insomnia, eating disorders and substance use disorders.

While expansion is on the docket, the majority of the new capital will go toward investing in technology. The company looks to expand its services and partner with payers as a technology provider to help them better manage the effectiveness of the networks they have.

“Cigna Ventures collaborates with innovative, forward-thinking companies who have the ability to solve healthcare’s biggest challenges and improve health outcomes for many,” said Craig Cimini, Head of Cigna Ventures. “We’ve collaborated with Octave since 2021 and believe in what the company is doing to set a new standard for behavioral care delivery.”