Talkspace is an app that helps people to connect people with mental health doctors and therapist for counseling via text messages and video chats. The app raised $50 million and collaborated with one of the biggest health insurers in the United States. This indicates that the market for psychological therapy has been growing.
On Wednesday, the New York-based startup said, “The investment round led by Revolution Growth brings the total amount it has raised so far to about $110 million. Its deal with Optum, a unit of UnitedHealth Group Inc., will make the Talkspace app available to about 2 million Optum customers.”
According to federal estimates, in 2017, nearly 57 million adults had conditions related to mental health and substance abuse, while 70% of them received no professional help and treatment.
Oren Frank, chief executive officer of Talkspace, said, “It’s what we would call a failed market.”
The app connects people with a network of 5,000 certified therapists and doctor. Users pay a fee starting at $49 a week and can leave a text, voice or video message with therapists who get in touch with them.
Talkspace offers low-cost, high-tech alternatives to in-person therapy visits. Its competitors include apps such as Ginger and BetterHelp, while larger companies such as Teladoc and MDLive offer remote mental health services and consultations for physical ailments.
Gurpreet Singh Dhillon, a consultant at PwC, said, “Health-care providers are trying to extend beyond their physical geographic reach to one that’s more a virtual geographic reach.”
According to PwC research, about three-quarters of doctors recommend a digital app to patients and a similar number of patients received in-person care that could have been delivered in remote areas.
The U.S. Food and Drug Administration (FDA) has approved prescription mobile apps that are intended to help people when it comes to treating substance-use disorders.
Talkspace’s business comes from retail customers who pay directly; however, Frank said the service is being packaged into employer benefit plans. With an agreement with Optum, it is expected that more than 5 million people will have access to Talkspace via health plans, educational organizations, and employee-assistance programs.
Frank said, “At any given period, the number of customers using Talkspace is in the high tens of thousands.” Dr. Neil Leibowitz, the chief medical officer at Talkspace, said, “We are building this body of evidence, publication by publication.”
