REDWOOD CITY, CA, Leading online counseling and telepsychiatry service, today announces it has raised $5 million in Series A financing.
), the leading online counseling and telepsychiatry service, today announces it has raised $5 million in Series A financing. The Social+Capital Partnership ('Social Capital') led the round with participation from First Round Capital and Great Oaks Venture Capital.
Breakthrough combines modern telehealth technology with evidence-based healthcare practices. Patients can search detailed profiles of the company's licensed therapists, watch therapist video introductions, book online appointments, and get live care via HD videoconferencing from anywhere with Internet access, including the patient's home.
Breakthrough's biggest distinction is that it accepts insurance. Other online therapy services require patients to pay out-of-pocket, but Breakthrough covers over two million members of health plans such as Blue Shield of California and Magellan. This is the largest coverage of any telepsychiatry service.
'We are passionate about helping people through the biggest challenges in their lives,' said Mark Goldenson, CEO of Breakthrough. 'Mental illness is devastating, but treatable. We want to make treatment affordable and available for everyone.'
According to the National Institute of Mental Health, over 67 million Americans need mental health care, but only a third receive minimally adequate care, while the rest receive insufficient or no care at all. Reasons for this gap include the stigma of seeking therapy, the cost of treatment, lost time from work and travel, and the lack of available specialists in rural areas or for populations such as veterans and Medicaid members. Live video therapy helps remove these barriers by helping people find, book, receive, and pay for their treatment online.
'Breakthrough is revolutionizing how people get mental health care. They are making it possible to receive treatment from home or anywhere, without sacrificing quality of care,' said Ted Maidenberg, General Partner at The Social+Capital Partnership. 'Breakthrough is solving major issues for patients, providers, and insurers.'
Research from institutions such as the National Institute of Mental Health, Johns Hopkins University, and the Department of Veterans Affairs show that telehealth has equivalent effectiveness to in-person care. A landmark 2012 study showed that live video treatment of 98,000 veterans with mental illnesses reduced hospitalization rates and duration of hospital stays by 25 percent.
Breakthrough's team includes:
Mark Goldenson (CEO), a PayPal and Stanford psychology alum who has led startups for 15 years
Julian Cohen (COO), former CEO of Cigna Behavioral and CMO of United Behavioral Health with 30 years of mental health executive experience
Andy Neuschatz (VP of Engineering), founding lead engineer of BabyCenter who has won three Webby Awards
Dr. Mark Levine (Chief Medical Information Officer), founder of the largest psychiatric practice in Northern California and a board-certified psychiatrist with 31 years of experience
'We love investing in early leaders of inevitable markets,' said Rob Hayes, Partner at First Round Capital. 'Breakthrough is leading a market that is going to become mainstream. We're very excited to help them build a strong business that can also do a lot of good.'
Breakthrough's investors also include Keith Rabois (former COO of Square), Kapor Capital, Morado Ventures, and Matt Douglass (co-founder of Practice Fusion).
The company plans to use the funds to scale its engineering, sales, and marketing teams, as well as to expand its network of credentialed psychiatrists and therapists. Breakthrough also plans to advocate for mental health awareness and telemedicine's growing role in American healthcare.
About The Social+Capital Partnership
The Social+Capital Partnership ('Social Capital') is a partnership of philanthropists, technologists and capitalists utilizing venture capital as a force to create value and change on a global scale. The Partnership is based in Palo Alto, California.
About First Round Capital
First Round Capital is one of the most respected early-stage venture capital firms. Known for innovative ways of supporting their companies, First Round's portfolio includes Square, Path, Uber, and TaskRabbit. First Round Capital invests nationally and has offices in San Francisco, New York, and Philadelphia.
Breakthrough is the leading online counseling and psychiatry service, helping people find, book, and talk to licensed mental health providers from almost anywhere. Breakthrough currently covers two million members of health plans such as Blue Shield of California and Magellan. Breakthrough is headquartered in Redwood City, California and available at www.breakthrough.com