Behavioral health-focused virtual reality (VR) companies BehaVR and OxfordVR have officially merged, forming a single, more powerful entity that will continue operations under the BehaVR name. The merger, announced Tuesday, is backed by a $13 million Series B funding round led by Optum Ventures and Oxford Science Enterprises, with participation from Accenture Ventures, Confluent Health, Chrysalis Ventures, and Thornton Capital. This union signals a major step forward in the emerging field of VR therapy for mental health.
Both BehaVR and OxfordVR operate in the growing digital therapeutics (DTx) space, which delivers evidence-based treatments via software interventions. Their VR programs are designed to provide immersive, multi-sensory experiences that help patients manage and treat a variety of mental health conditions. BehaVR, founded in 2016 in Elizabethtown, Kentucky, has raised $8.2 million over three funding rounds and specializes in VR programs aimed at anxiety regulation, maternal health, pain management, and addiction recovery. OxfordVR, also founded in 2016 in Oxford, England, attracted $17.2 million in venture funding prior to the merger and has been recognized for its innovative VR therapy gameChange, which recently earned FDA breakthrough designation for treating schizophrenia spectrum disorders through virtual cognitive behavioral therapy (CBT).
Aaron Gani, founder and CEO of BehaVR, will continue to lead the merged company. In a statement to Behavioral Health Business, Gani highlighted the momentum generated by the merger. “BehaVR was already pursuing FDA clearance for two products addressing social anxiety and opioid use, and now we add OxfordVR’s product for addressing negative symptoms of schizophrenia,” he said. The company plans to leverage the new funding to advance its pipeline, enhance platform interoperability, and commercialize a suite of VR therapy for mental health solutions that can be deployed individually or collectively to meet the needs of a broad patient population.
The Growing Role of VR in Behavioral Health
The BehaVR-OxfordVR merger reflects a broader trend in behavioral health: more providers and innovators are turning to virtual reality to create new therapeutic options. Early this year, AppliedVR secured FDA De Novo clearance for its EaseVRx system, which uses VR-based cognitive behavioral therapy and mindfulness techniques to address chronic lower back pain. While initially focused on a physical health condition, AppliedVR has plans to expand into anxiety and depression treatment, highlighting the versatility of VR therapy for mental health.
XRHealth, which raised $10 million earlier this year, leverages VR to treat conditions such as anxiety, depression, ADHD, and speech-language disorders. Similarly, Pear Therapeutics, widely recognized for its digital therapeutics for addiction treatment, acquired two VR-based pain relief therapies from Firsthand Technology in 2020. These examples underscore the growing investment in VR therapy for mental health as a complement to traditional therapy and pharmacological approaches.
“The DTx industry’s expanding depth and breadth has meant increasing options to improve clinical outcomes using technologies that patients already have access to and are familiar with,” a spokesperson from the Digital Therapeutics Alliance told Behavioral Health Business. “This is especially true in the virtual reality space, where these immersive therapeutics – a subset of digital therapeutics – are demonstrating meaningful results and offering patients a high-quality, evidence-based treatment to address their mental health concerns as well as other areas of extraordinary need.”
How VR-Based Treatments Work
One of the unique advantages of VR therapy for mental health is its ability to create controlled, immersive experiences that simulate real-life situations. This is particularly valuable in mental health treatment, where exposure therapy, stress management, and cognitive behavioral interventions are often more effective when experienced in a realistic, controlled environment. VR allows clinicians to tailor interventions to each patient’s needs, providing experiences that engage multiple senses and promote emotional and cognitive processing in ways traditional therapy alone cannot.
Gani explains, “VR is uniquely immersive because it gives us the ability to create and control multi-sensory experiences that the brain processes as real. This allows for uniquely powerful interventions tailored to address many mental and behavioral health needs, things like anxiety, depression, chronic pain, PTSD, and substance use disorder.” By combining VR technology with evidence-based therapeutic protocols, BehaVR and OxfordVR are at the forefront of VR therapy for mental health, delivering innovative, research-backed solutions for patients and clinicians alike.
Looking Ahead: Expanding Access and Impact
With the merger, BehaVR is poised to accelerate the development and commercialization of VR therapy for mental health solutions across the acuity spectrum. The company envisions a future where its products can be deployed via healthcare enterprises as either individual treatments or as part of a broader suite to address the needs of a larger patient population.
The potential impact of this merger goes beyond individual treatment, as VR therapy for mental health also offers opportunities for healthcare systems to improve patient outcomes at scale. By providing immersive, evidence-based interventions that are easily accessible and engaging, these technologies can complement traditional care models and expand access to behavioral health services for populations that may have been underserved or unable to access in-person treatment.
Conclusion
The merger of BehaVR and OxfordVR represents a significant milestone in the digital therapeutics landscape, highlighting the growing role of VR therapy for mental health. With new funding, a strong leadership team, and a combined portfolio of innovative VR therapies, the joint company is well-positioned to deliver scalable, evidence-based solutions for patients and healthcare providers alike.
As VR continues to gain traction in mental health care, companies like BehaVR are paving the way for a future where immersive digital therapies are a standard part of treatment, helping patients manage anxiety, depression, schizophrenia, substance use disorders, and other behavioral health challenges in powerful, engaging, and clinically proven ways.
