Brave Health, a Miami-based virtual behavioral health company, has raised $40 million in a Series C funding round led by Town Hall Ventures’ newly launched $350 million fund. This latest investment brings Brave Health’s total funding to $60 million and will be used to expand into new markets, pursue additional value-based care arrangements with payers, and strengthen the company’s technology and data infrastructure. These improvements are designed to enhance patient engagement, outcomes tracking, and care delivery, all essential to the company’s Medicaid behavioral health model.
Town Hall Ventures Leads Series C Funding
Town Hall Ventures’ investment is its first from its third fund and joins existing investors Union Square Ventures and City Light Capital. The venture capital firm was founded by former Biden and Obama healthcare leader Andy Slavitt. Town Hall Ventures Partner Anna Fagin said the investment was made because Brave Health is systematically improving Medicaid behavioral health delivery and supporting underserved populations. “In the last month, Brave Health has helped more than 4,000 people on Medicaid—at the most vulnerable point in their life—find a behavioral health resource when almost no one is there to help them,” Fagin said.
Partnerships with Providers and Payers
Brave Health’s approach centers on partnerships with local healthcare providers and health plans to ensure Medicaid patients get referred to mental health care as quickly as possible. The company also develops financial arrangements with payers that operate Medicaid managed care organizations. CEO and co-founder Anna Lindow highlighted that these value-based care arrangements allow Brave Health to measure meaningful outcomes while ensuring timely access to care. Currently, the company has three value-based care contracts, including its first with Molina Healthcare of Texas. Across all arrangements, speed to care and activation of care are primary measures of value.
Provider-First Model
Nearly 200 behavioral health professionals—including therapists, psychiatrists, peer support specialists, and nurse practitioners—work as employees rather than contractors. This model sets Brave Health apart from many digital behavioral health companies and ensures high-quality, consistent care for Medicaid behavioral health patients. Lindow emphasized the need for Medicaid-focused behavioral health services, noting that nearly 1 in 4 Americans rely on Medicaid, but access to providers is limited in many areas. Research from George Washington University shows that about 50% of U.S. counties lack a psychiatrist or addiction medicine specialist, and nearly 23% of behavioral health prescribers do not see any Medicaid patients.
Rapid Growth and Patient Referrals
Since partnering with health plans in 2019, Brave Health has experienced rapid growth. Year-to-date, it has received 23,000 referrals, reflecting its ability to reach more individuals in need of Medicaid behavioral health services. With over 200 health plan partnerships covering more than 65 million lives, Brave Health provides outpatient services that address critical behavioral health needs for medically vulnerable populations.
Investment in Technology Infrastructure
The new funding will also support building the company’s technology infrastructure to improve patient engagement and outcomes tracking. These systems are essential for measuring results and scaling value-based care contracts. Town Hall Ventures prioritizes investments in companies capable of taking accountability for health outcomes while maintaining financial and operational growth. According to Fagin, the infrastructure enables Brave Health to confidently measure results, take accountability, and scale its impact.
Value-Based Care Opportunities
Medicaid behavioral health patients often face more acute conditions and lower reimbursement rates, but value-based care arrangements allow companies like Brave Health to deliver meaningful outcomes while maintaining financial sustainability. “That is exactly what we’ve built and what we are going to continue to build,” Lindow said.
Future Outlook
With this Series C funding, Brave Health is well-positioned to expand its reach and deepen its impact on the behavioral health landscape. By combining technology, local partnerships, and a provider-first approach, the company continues to address gaps in access to Medicaid behavioral health care, ensuring vulnerable populations receive timely, high-quality services while driving innovation in value-based care.
