Philadelphia-based mental health startup NeuroFlow has raised a $25 million growth round to build on a year in which it has rapidly increased employee headcount.
The round was led by Wayne-based SemCap Health, which is being brought on as a "strategic partner and investor" for the startup. The funding will help NeuroFlow make greater investments in research and development, expand its technology platform and increase headcount. The round follows NeuroFlow's $20 million Series B in January and brings its total funding to date to $57 million.
Founded in 2017 by COO Adam Pardes and CEO Christopher Molaro, the startup's platform can track patients' moods, pain levels and sleep through self-assessment. Health care providers can use it to identify behavioral health conditions and integrate it into a care plan. It helps patients connect with the right level of care with the intention of ultimately lowering costs associated with mental health treatments.
Pardes said the company has been "deliberate about growth" since its founding. It wasn't seeking to raise when Semcap came to them, so the extra cash will go directly to growth. Pardes said the team "would never rule out more funding, but right now we're heads-down in execution mode."
"This funding helps us go from startup to scale-up," Pardes said. "We're no longer a couple guys in the garage building this."
NeuroFlow moved into a 16,000-square-foot office at 1601 Market St. last month and has doubled its headcount over the past year to about 100. The company intends to add to the team, but Pardes didn't have a goal in mind for how many new hires it will look to bring on.
NeuroFlow is also set to more than double its revenue year over year, including more than seven figures worth of deals in September alone, Pardes said. Over the past year, NeuroFlow's platform jumped from supporting 2 million people to 15 million — either directly through payors or indirectly through health care systems.
"NeuroFlow is the definitive leader in behavioral health integration because its technology effectively connects mental and physical health and supports integrated care models at scale," SemCap Health's Executive Chairman Ralph Muller said in a statement.
He added that NeuroFlow is "helping healthcare organizations do more with less — clinicians use technology to engage millions of in-need patients to improve outcomes and reduce encounters in expensive, supply-constrained medical settings.”
NeuroFlow counts Fortune 500 companies like Aflac and Prudential among its clients, as well as institutions like the Department of Defense and local health care giant Jefferson Health.
