The behavioral health industry is undergoing a remarkable transformation fueled by advances in technology, innovative treatment models, and an increasing focus on personalized, accessible care. Recent virtual behavioral health funding rounds reveal growing investor confidence in virtual and hybrid mental health providers who are redefining how treatment is delivered. From specialized eating disorder programs to virtual reality therapies, these companies exemplify the future of mental and physical wellness.
In this blog, we explore four standout companies — Arise, Being Health, LifeGuides, and XRHealth — each carving out unique spaces in behavioral health through significant capital raises and innovative care approaches.
Arise Raises $6.5 Million to Expand Personalized Virtual Eating Disorder Treatment
Founded less than two years ago, New York-based Arise has quickly become a notable player in virtual care by focusing exclusively on eating disorder treatment. The startup recently announced it has raised approximately $6.5 million in funding, following an earlier $4 million raise, according to an SEC filing.
This latest virtual behavioral health funding is a strong signal of investor confidence in specialized, personalized care models. Eating disorders are complex and deeply personal conditions, requiring sensitive and tailored approaches. Arise’s model prioritizes personalization and inclusivity, recognizing that a one-size-fits-all treatment does not serve the diverse population struggling with these disorders.
A core pillar of Arise’s approach is its commitment to cultural competence. The company actively recruits providers from diverse backgrounds so that patients can be matched with clinicians who share similar demographics or life experiences. This model aims to build trust, improve communication, and ultimately enhance treatment outcomes.
Beyond one-on-one therapy, Arise also offers peer support groups, providing patients with community connections that are often critical to recovery. By fostering a holistic support environment, the company helps combat the isolation many individuals with eating disorders face.
Joan Zhang, Arise’s Chief Product Officer and co-founder, succinctly captured the company’s philosophy in a prior interview with Behavioral Health Business (BHB):
“We believe that by centering the individual’s experiences and the individual’s voice, we can actually create a more effective treatment [long] term.”
Importantly, Arise accepts a variety of insurance plans—including major commercial insurers such as Optum, Cigna, UnitedHealthcare, and Aetna—plus Medicare and Medicaid. This broad insurance acceptance aims to reduce barriers to access and make high-quality eating disorder treatment available to more people.
Being Health Secures $5.4 Million to Pioneer a Hybrid Model of Mental Health Care
Founded in 2023, Being Health represents a fresh take on mental health care through its hybrid care model, blending the convenience of virtual services with the depth of in-person treatment. Based in New York City, the company recently raised $5.4 million in capital from investors 18 Park and HDS Capital.
This round of virtual behavioral health funding highlights the growing appeal of hybrid models, which provide patients with flexible options without compromising care quality.
Being Health’s offering is notably comprehensive. Their clinical services span psychiatry, psychotherapy, functional medicine, novel treatments, and wellness services. Patients can access care virtually or visit the Manhattan clinic for face-to-face appointments, creating flexibility that caters to varying preferences and needs.
Haim Dabah, founder of HDS Capital and lead investor in the round, lauded Being Health’s integrated approach:
“Being Health’s integrated model of care leveraging traditional and novel treatments is positioned to play a leading role in transforming mental health care as we know it. By expanding the mental health toolkit and building a team of best-in-class clinicians coupled with gold-standard safety protocols, Being Health can serve as a bridge to bring innovative treatments to patients in a safe, clinical environment.”
Their vision includes offering diverse therapeutic modalities under one roof, aiming to eliminate the fragmented care many patients face. By uniting different approaches—whether traditional psychotherapy or cutting-edge treatments—Being Health hopes to increase efficacy and patient satisfaction.
LifeGuides Raises $16.5 Million to Support Employee Wellness Through Personalized Coaching
Mental health and wellness aren’t confined to clinical treatment; workplace well-being is now a central focus for many employers. Enter LifeGuides, an employee wellness company that recently closed a $16.5 million funding round, according to SEC disclosures.
This substantial round of virtual behavioral health funding reflects the increasing recognition of proactive mental wellness strategies, especially in work environments.
LifeGuides connects users with dedicated “life guides,” who offer coaching on a broad spectrum of life challenges. These include emotional well-being, stress management, work-life balance, proactive wellness, chronic disease management, identity issues, community building, and relationships.
One of LifeGuides’ strengths is its matching process, which pairs users with guides who share similar experiences, backgrounds, or challenges. This fosters meaningful connections and increases the likelihood of sustained engagement. Support can be delivered flexibly through video sessions or ongoing messaging, accommodating busy schedules and varied preferences.
Their client roster features prominent organizations such as Mattel, Heartland, Kaiser Permanente, and the Better Business Bureau (BBB), highlighting a growing demand among employers for comprehensive mental health and wellness solutions.
XRHealth Raises $6 Million to Advance Virtual Reality Solutions in Behavioral and Physical Health
Virtual reality (VR) is emerging as a powerful tool in health care, offering immersive therapy experiences that were once unimaginable. VR platform XRHealth recently secured $6 million in a new funding round led by Asabys Partners, with participation from NOVA Prime and existing investors. This latest raise follows a $10 million round two years ago, demonstrating sustained investor belief in the company’s growth trajectory.
XRHealth’s platform is recognized as the largest virtual and augmented reality solution supporting both physical and mental health. Its services encompass VR occupational therapy, VR mental health therapy, and online physical therapy, targeting a range of conditions from anxiety and stress to autism spectrum disorder, fibromyalgia, chronic pain, and neurological issues.
Eran Orr, XRHealth’s CEO, emphasized the company’s ambitions in a recent statement:
“The funding is intended to support the growth of our platform… We are also very excited to announce that we are working on an AI clinician in spatial computing, which will reduce the burden from the clinical staff and improve access to healthcare to millions of patients around the world.”
This integration of artificial intelligence with spatial computing aims to streamline clinician workloads while enhancing patient care. Additionally, XRHealth recently merged with Amelia Virtual Care, expanding its ability to deliver cutting-edge treatments and extend its reach.
VR therapy offers unique advantages by providing controlled, engaging environments for patients to practice coping skills, manage pain, or rehabilitate motor function, making it a promising complement to traditional treatment modalities.
What These Funding Rounds Mean for the Future of Behavioral Health
Together, these rounds of virtual behavioral health funding highlight several important trends shaping behavioral health today:
- Personalized and culturally competent care is gaining priority, as seen with Arise’s diverse provider network and matching platforms like LifeGuides. This reflects a growing understanding that mental health treatment must account for individual identity and experience to be effective.
- Hybrid care models are emerging as a practical solution to increase access without sacrificing the quality of in-person services, illustrated by Being Health’s integrated offerings.
- Technological innovation — particularly in virtual reality and AI — is enabling new treatment possibilities that address both mental and physical health, as XRHealth demonstrates.
- The focus on employee wellness and preventative care through coaching platforms like LifeGuides underscores a shift toward holistic approaches that engage individuals before crisis points.
As the behavioral health sector continues to innovate, these companies are leading the charge in creating more accessible, effective, and compassionate care. Patients stand to benefit from an expanding toolkit of treatment options tailored to their unique needs and lifestyles, while providers can leverage technology to scale impact.
Looking Ahead
With mental health and wellness demands growing, these virtual and hybrid care providers offer promising pathways forward. Whether through personalized eating disorder treatment, hybrid psychiatric care, workplace coaching, or immersive VR therapy, the future of behavioral health is more connected, inclusive, and technology-enabled than ever before.
The recent rounds of virtual behavioral health funding will fuel innovation, increase access, and improve outcomes for millions of people worldwide.
