Eleos doubles in value as it raises $60 million to disrupt behavioral healthcare
Eleos doubles in value as it raises $60 million to disrupt behavioral healthcare
The new funding will help the Israeli startup scale its innovative AI tools to transform the mental health industry.
Israeli startup Eleos Health has raised $60 million in a Series C round led by Greenfield Partners. Existing investors, including F-Prime Capital, Eight Roads, Lool Ventures, Menlo Ventures, and ION, participated, along with new investors such as the Michael & Susan Dell Foundation, Union Tech Ventures, and Centerstone. This new funding round brings Eleos' total investments to over $120 million. According to the company's CEO and one of its founders, Alon Joffe, the company's value has at least doubled in this round.
Eleos was founded in 2020 by Joffe, Dror Zaide, and Alon Rabinovich. The company's headquarters are located in Boston and Tel Aviv, where approximately 160 people are currently employed. Joffe is a major in the IDF reserves and served with his unit, 669, which is the Israeli Air Force's combat search and rescue extraction unit, for over three months following the October 7 attacks.
Eleos uses the largest dataset of real-world treatment sessions to power proprietary behavioral health AI technology. It is the first behavioral healthcare company to leverage multimodal large language models (MM-LLMs) to process multiple data input types simultaneously. According to the company, a recent randomized controlled trial (RCT) found that Eleos improved progress note submission times by more than 80%, while doubling client engagement and improving care outcomes by a factor of 3-4x compared to treatment as usual (TAU).
The company plans to use the fresh capital to expand its offerings, grow its commercial team, and push into underserved segments of behavioral healthcare — particularly substance use disorder (SUD) treatment centers. Post-acute behavioral healthcare, an $11B market historically underfunded by health tech, is a core focus of Eleos’ growth strategy.
“We serve all the markets outside of hospitals. These are massive markets, particularly in the U.S.,” Joffe told Calcalist. “In the past year, 15,000-20,000 therapists and hundreds of thousands of patients have used our product. We sell to organizations that employ therapists. One of our products operates in the background during conversations, providing clinical insights and summarizing meeting outcomes. A second product reviews all the summaries to ensure they comply with regulations, enabling those companies to receive insurance reimbursements. We work with non-profit organizations in the U.S. that primarily serve populations unable to afford private therapists. Therefore, being able to account for government reimbursements is critical.”
The company reported that it tripled its annual revenue during each of its first three years in business and doubled its revenue in 2024. “We are on track to generate tens of millions of dollars in revenue this year,” Joffe said. “Our goal is to continue doubling our revenue and expanding into additional markets with more products.”
The Series C announcement coincides with the company’s launch of a new clinical documentation improvement (CDI) product, Eleos Compliance. Developed with guidance from legal and regulatory experts retained by the National Council for Mental Wellbeing, Eleos Compliance gives behavioral health organizations near-instant review of every submitted progress note. Leveraging agentic AI — the next generation of AI that proactively surfaces insights — Eleos Compliance flags potential documentation errors before they can trigger costly fines or payment clawbacks.
