Vanna Health has raised $17 million in new funding to expand its technology-enabled care model for individuals living with serious mental illness, supporting growth into additional markets and further development of its clinical and technology infrastructure.
The financing round was co-led by a national health insurer and venture capital firm AlleyCorp, with participation from Health Velocity Capital. The funding will be used to broaden Vanna Health’s geographic footprint, increase clinical and operational capacity, and enhance the technology platform that supports its community-based care model.
The investment comes as healthcare organizations face growing pressure to improve outcomes for individuals living with serious mental illnesses, including schizophrenia, schizoaffective disorder and bipolar disorder. Approximately 14 million Americans are affected by these conditions, yet many continue to experience gaps in access to coordinated, evidence-based care despite decades of research demonstrating effective treatment approaches.
Vanna Health was founded to address those challenges through an integrated model that combines clinical care, chronic disease management, community support and technology. The company partners with health insurers and local organizations to provide coordinated services designed to address the medical, behavioral and social factors that influence long-term health outcomes.
Rather than relying solely on traditional clinic-based care, Vanna Health’s approach focuses on supporting patients within their communities through ongoing engagement and personalized care plans. The model is intended to help individuals achieve not only symptom stability but also broader recovery goals related to housing, employment, social connection and overall well-being.
The company currently operates in four states and plans to use the new capital to expand into additional markets. Management said the investment will support growth of both clinical and operational teams while allowing the company to scale its services without sacrificing the personalized approach that defines its model.
The funding reflects increasing investor interest in value-based healthcare models that target some of the most complex and costly patient populations. Serious mental illness is associated with significant healthcare expenditures, frequent hospitalizations and long-term challenges that can affect both quality of life and health system costs.
“AlleyCorp backs founders solving healthcare’s hardest problems, and Vanna Health is doing exactly that,” said Alexi Nazem of AlleyCorp. He noted that the company has demonstrated an ability to improve outcomes for patients while reducing overall system costs, a combination that has attracted attention from investors and healthcare stakeholders alike.
Health Velocity Capital, which focuses exclusively on healthcare software and services companies, cited Vanna Health’s ability to combine evidence-based care, community support and technology into a scalable model as a key factor behind its investment.
The company’s leadership views the funding as an opportunity to expand access to care for a population that has historically faced fragmented services and limited support. Executive Chairman and Co-Founder Giovanni Colella said the organization was built around a deeply personal mission inspired by his family’s experience caring for a loved one with serious mental illness.
Chief Executive Officer Dr. Liz Kwo said the investment reinforces the company’s belief that effective healthcare is rooted in connection, dignity and community support. She noted that technology plays an important role in scaling care delivery but should strengthen human relationships rather than replace them.
“This funding is a powerful affirmation that the future of healthcare is rooted in people, place, and purpose,” Kwo said. “We believe healing happens through connection, dignity, and belonging, supported by technology that strengthens rather than fragments human care.”
As healthcare systems and insurers continue searching for more effective ways to address behavioral health challenges, Vanna Health is positioning itself at the intersection of value-based care, mental health services and community-based support. The company believes its integrated model can improve outcomes for individuals living with serious mental illness while helping healthcare organizations better manage costs associated with complex patient populations.
With the new capital, Vanna Health plans to accelerate its expansion strategy and bring its recovery-focused care model to additional communities across the United States, aiming to increase access to coordinated, evidence-based support for one of healthcare’s most underserved populations.