Google Ventures leads $40M round in behavioral health startup Quartet

By Bernie Monegain
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Quartet Health, the behavioral health startup backed by former Congressman Patrick Kennedy, has raised $40 million in a second round of funding.

GV – formerly Google Ventures – led the funding with participation from existing investors Oak HC/FT Partners, F-Prime Capital Partners, and Polaris Partners.

Krishna Yeshwant, general partner at GV, will join Quartet’s board of directors.

Quartet will use the capital to scale its platform to more major markets across the country and to expand its team of technologists, data scientists and clinicians, said CEO and founder Arun Gupta.

He said the company plans to hire 100 people over the next year to add to its 60-member team.

“This issue resonates with people,” Gupta said. “Everyone’s been touched by it. People really want to work on this problem. You can’t think about health without thinking about mental health. There’s a role that behavioral health plays in the overall health of our nation and our community. It’s just so entangled.”

One organization moving on it is Lahey Health. Quartet announced on April 11 that Lahey, which provides care in Massachusetts and New Hampshire, would employ Quartet's technology-enabled model of mental healthcare to support better patient outcomes and lower costs.

Besides the investment, Gupta said the addition of Yeshwant to the Quartet board is a boon. Yeshwant is a practicing internal medicine doctor at Brigham and Women’s Hospital in Boston.

“He really gets both healthcare and technology,” Gupta said.

Studies show that individuals with behavioral health conditions account for between 51 and 62 percent of total healthcare costs in the United States. Most also have attendant physical illnesses, one-third of patients in need of behavioral care go untreated in any given year.

With a platform powered by advanced data science algorithms that identify patients and physicians, Quartet helps primary care providers and behavioral health specialists by matching the right patients with the right healthcare professionals, which frees capacity to meet the needs of a greater number of patients. Quartet also monitors the efficacy of the treatments initiated.

The company partners with payers and provider systems to make accessible behavioral care more convenient, effective, and integrated.

Gupta and Quartet Chairman Steve Shulman, formerly CEO of behavioral health managed care company Magellan Health, founded Quartet in 2014.

The company raised a $7 million Series A in January 2015 led by Annie Lamont at Oak HC/FT, who previously backed companies including athenahealth and Health Dialog.