Talkiatry Secures $130 Mn Series C Funding to Expand Telepsychiatry Services

The Series C funding round was led by Andreessen Horowitz, with Perceptive Advisors participating and debt financing provided by Banc of California.

US-based Talkiatry, a telepsychiatry provider, announced a new equity and debt financing round of $130 million to expand its value-based virtual behavioral care model.

The Series C funding round was led by Andreessen Horowitz, with Perceptive Advisors participating and debt financing provided by Banc of California.

However, the startup did not disclose the proportion of equity to debt in this round.

Funds Utilization

Talkiatry partners with payer and provider networks, having in-network agreements with over 60 health plans, HCA Healthcare, and other undisclosed providers.

Robert Krayn, CEO and cofounder, Talkiatry noted that the new funding would enable Talkiatry to secure more value-based contracts with health plans. To date, the company has raised $245 million.

The platform connects patients to over 300 board-certified psychiatrists for virtual visits, typically scheduled within five days after an online assessment. This system aims to provide timely psychiatric care, reducing the need for emergency room visits and hospitalizations.

Additionally, Talkiatry emphasizes improved outcomes and reduced higher-cost care utilization for partner organizations. The startup provides healthcare providers with system integration services, allowing for seamless patient referrals within electronic health records.

Sharing insights, Scott Kupor, managing partner at Andreessen Horowitz, said, "Talkiatry has mainstreamed outcomes-based psychiatric healthcare and risk-based payment models. The startup has built a reputation for providing affordable, high-quality treatment for psychiatric patients while creating robust partnerships with a continually-expanding payer network."

Clinical Outcomes

A recent matched cohort analysis conducted by a national health plan revealed that patients receiving care from Talkiatry’s telepsychiatrists had significantly better outcomes.

It said, compared to similar patients treated by other in-network providers, those using Talkiatry’s services had a 68% lower rate of hospitalization, 32% fewer emergency room visits, and approximately $700 lower monthly care costs.

Talkiatry has also published research in the Journal of Medical Internet Research, indicating significant improvements in depression and anxiety symptoms among its patients.

"Over the past few years we’ve built one of the country’s largest and highest-quality in-network psychiatric practices, while proving with real-world data that we deliver superior health outcomes and cost savings. We’re thrilled to be part of the a16z family as we continue to bring more health plans into value-based contracts and expand to reach more Americans in need," CEO Krayn added.

Since its launch in 2020, Talkiatry has facilitated over a million patient visits. The recent funding follows a $75 million Series B round that closed last September.

By leveraging technology and strategic partnerships, the startup aims to enhance the quality of mental health services and improve patient outcomes.