The mental health sector is witnessing a significant surge in behavioral health startups funding as investors increasingly support innovative solutions that improve access, treatment, and outcomes. Startups across the United States are raising millions to advance telehealth, integrate behavioral services into traditional healthcare settings, and develop AI tools to assist providers.
In this blog, we’ll explore four key companies that recently secured funding and are making notable impacts in the behavioral health space.
InSite Health: $2.9 Million to Expand Psychiatric Services in New Jersey
New Jersey-based InSite Health recently raised $2.9 million, according to an SEC filing, marking a key milestone in behavioral health startups funding. InSite offers psychiatric services for adults and children, specializing in medication management, psychiatric evaluations, behavioral threat assessments, and psychotherapy.
Their treatment covers a wide range of conditions, including anxiety disorders, PTSD, addiction, depression, ADHD, autism, and other behavioral disorders. Patients can access services through telehealth or at one of the three existing outpatient locations, with a fourth opening soon.
Notably, InSite also offers school-focused psychiatric services, providing schools with psychiatric care, medication management, therapy, IEP evaluations, and a technology platform to track behavioral health data over time. This integrated approach is a strong example of how behavioral health startups funding is being directed toward community-centered care models.
FamilyWell Health Closes $4.3 Million Seed Round for Perinatal Behavioral Health
Boston-based FamilyWell Health raised $4.3 million in seed funding, highlighting another wave of behavioral health startups funding focused on specialized populations. FamilyWell integrates behavioral health services like coaching, therapy, and psychiatry directly into OB/GYN practices.
Using the collaborative care model, FamilyWell offers virtual and in-person services for perinatal individuals, including mental health screenings, therapy, coaching, medication management, and on-demand texting with live coaches. Their mission aligns with growing recognition of the importance of perinatal mental health and reflects targeted investment in this vital area.
Octave Health Raises $5 Million to Scale Hybrid Behavioral Care
Virtual care company Octave Health has secured $5 million as part of a $10 million funding round, continuing to attract substantial behavioral health startups funding since its $52 million Series C last year. Octave’s hybrid model combines in-person and virtual care for behavioral health conditions like depression, ADHD, bipolar disorder, insomnia, eating disorders, and substance use disorders.
By leveraging data-driven outcome tracking, Octave supports value-based care contracts that reward effective treatment. This approach exemplifies how behavioral health startups funding is fueling innovation not only in access but also in care quality measurement.
Upheal Secures $3.25 Million to Streamline Mental Health Documentation
New York-based Upheal closed a $3.25 million seed round to further develop its AI-powered platform for behavioral health clinical documentation. This investment is a clear example of behavioral health startups funding targeting operational efficiency in mental health care.
Upheal’s platform supports therapists, psychiatrists, social workers, and coaches by automating note-taking, treatment plan creation, progress tracking, and integrating with tools like Google Calendar and Zoom. This allows providers to spend less time on paperwork and more time with patients, addressing a major pain point in behavioral health workflows.
Why Behavioral Health Startups Funding Matters More Than Ever
The increased flow of capital into behavioral health startups reflects a broader shift toward technology-enabled, patient-centered care. These investments help:
- Expand access through telehealth and hybrid models
- Integrate behavioral health into schools and medical practices
- Improve provider efficiency with AI and automation
- Support vulnerable populations with specialized services
In 2025, behavioral health startup funding continues to drive innovation that can transform mental health treatment and outcomes nationwide.
