This post is by Russ Garland
from Venture Capital Dispatch
Quartet Health Inc., which uses its technology to improve access to behavioral health care and to integrate it with physical health care, has raised $40 million to expand its offering to markets across the U.S., Brian Gormley reports for VentureWire. New investor GV (formerly Google Ventures) is leading the Series B round, which also includes previous backers F-Prime Capital Partners, Oak HC/FT Partners and Polaris Partners. Quartet formed in 2014 and raised a $7 million Series A round last year. About one in five U.S. adults experiences a mental illness in a given year, according to the National Alliance on Mental Illness. Common behavioral-health conditions include depression, anxiety and drug and alcohol abuse. Patients can have difficulty gaining access to mental-health care because of a shortage of care providers and because physical and behavioral health care have typically been siloed instead of integrated, according to Quartet co-founder and Chief Executive Arun Gupta.
ALSO IN TODAY’S VENTUREWIRE (subscription required):
Cydan Development Inc., a venture-backed accelerator that creates drug companies targeting rare disorders, has launched its second startup with $31 million to develop a treatment for sickle cell disease.
Onfido Background Checks wants to help fintech companies and on-demand startups verify identities and complete background checks. The company raised $25 million to expand operations in the U.S. from Crunchfund, Idinvest Partners and Wellington Partners.
DigitalGenius Ltd. wants to use artificial intelligence to enhance the work that human customer-service agents do. The company announced it raised $4.1 million in funding.
Pharmacy startup PillPack Inc. is about to lose access to about a third of its customers. Express Scripts Holding, a company that manages pharmacy benefits for tens of millions of Americans on behalf of health insurers, expects to terminate PillPackfrom the Express Scripts network as of the end of April, the companies said.
(VentureWire is a daily newsletter with comprehensive analysis of all the investments, deals and personnel moves involving startups and their venture backers. For a two-week trial, visit http://on.wsj.com/DJPEVCNews, scroll to the bottom and click “try for free.”)
ELSEWHERE AROUND THE WEB:
Alibaba, Ant Financial to Jointly Invest $1.25 Billion in Ele.me. Chinese e-commerce giant Alibaba Group Holding, together with its financial affiliate, is placing a $1.25 billion bet on Chinese food-delivery app Ele.me, further fueling the battle to deliver offline services to Chinese consumers through mobile phones.
(Corrections and amplifications: A previous version of this article misspelled Idinvest Partners.)
Write to Russ Garland at email@example.com