Behavioral health tech company Eleos Health raised $60 million in series C funding to build out more artificial-intelligence-based tools for behavioral health providers.
Eleos is working to improve behavioral health care with a suite of clinical documentation AI tools. The company also announced Eleos Compliance, a new product that instantly reviews clinical notes and provides suggestions to fix errors before a claim is submitted.
The preemptive series C round was led by Greenfield Partners, and existing investors F-Prime Capital, Eight Roads, Menlo Ventures and ION also participated. New investors also joined the round, including the Michael & Susan Dell Foundation, Union Tech Ventures and Centerstone.
Eleos Health was founded in 2020. The company touts having the largest data set of real-world treatment sessions that fuels its proprietary AI. It also says it's the only behavioral health tech company to use a multimodal large language model. The startup's AI platform streamlines documentation to ease the operational burden on behavioral health care providers.
In each successive year of the company’s existence, its annual revenue has at least doubled, and, in some years, it tripled, according to executives.
In a preliminary randomized controlled trial done in conjunction with the Joplin, Missouri-based Ozark Center, Eleos studied 47 patients with anxiety and depression over their first two months of therapy. Half the group had providers who used Eleos Documentation and the other half used traditional documentation methods. Treatment group patients attended 67% more visits than the control group; and, the treatment group reported an average of 17.5% greater reduction in symptoms than the control group on standard self assessment forms, according to a study published in the Journal of Medical Internet Research.
The company also announced the launch of Eleos Compliance, another AI-enabled solution that relies on the company’s trove of behavioral health encounter data. The compliance technology will assess behavioral health providers’ notes for therapeutic recommendations and point out potential billing errors that would cause the claim to be rejected by insurance.
“Eleos Compliance flags potential documentation errors before they can trigger costly fines or payment clawbacks,” the company said in a statement. “This proactive approach simplifies the appeals process and supports ongoing accreditation efforts.”
The company raised $40 million in its series B round in September 2023. The series C raise doubles the company’s total funding, which now totals $120 million.
Eleos attributes its success, in part, to its focus on the behavioral health market. The company notes in a press release that behavioral health is an $11 billion industry that has been largely ignored by investors.
Eleos says with the fresh capital it will focus on expanding its product to the substance use disorder market. The company told Fierce Healthcare it also plans to add new features to its products that will benefit substance use disorder customers and other behavioral health care providers as well.
The company also plans to hire additional employees.
“We’re proud to back the phenomenal team at Eleos as they revolutionize the behavioral health space—a market of immense importance and scale which is facing severe challenges,” Shay Grinfeld, managing partner at Greenfield Partners, said in a statement. “Their transformative product alleviates the overwhelming administrative burden faced by providers, empowering them to focus on delivering exceptional care. Eleos’ innovative use of AI is reshaping the way behavioral healthcare is provided, and we are excited to be part of their journey.”