In one of the largest raises of the year in the digital health space, telehealth company Teladoc says today it has raised $50 million from Jafco Ventures and others.
The funding was made public in a regulatory filing on September 18, in which Teladoc also reported that its revenues are between $25 million and $100 million a year.
The large investment underscores the eagerness of startups and investors to grab mindshare as virtual doctor visits move mainstream for both consumers and healthcare providers.
In fact, telemedicine may be one of the healthcare system’s most powerful tools for cutting costs and promoting wellness as more payors begin using value-based reimbursement models. The might eliminate unnecessary face-to-face doctor visits, as well as allow caregivers to keep better tabs on at-risk patients.
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Teladoc contracts with insurers and large employers to provide video doctor visits for members and employees, who get 24/7 access to a network of doctors for non-emergency medical issues. The doctor visits can happen via phone, online video, mobile app, or through TelaHealth’s HealthSpot kiosks.
TelaHealth has just signed up Blue Cross Blue Shield of California and Rent-a-Center as customers, for example.
The company, which was founded back in 2002, believes it’s the nation’s largest telehealth provider, with 8 million members and more than 250,000 consults annually.
Teladoc CEO Jason Gorevic says his company aims to use the new money to further accelerate revenue growth in coming years. Teladoc says it has doubled its revenue in each of the past two years.
“This sizeable investment will allow us to quickly develop new products and services that deliver additional value for our customers while simultaneously expanding into new markets and distribution channels,” Gorevic says in a statement. “Our goal is to extend our significant lead in the industry such that Teladoc is the de facto brand in Telehealth.”
Teledoc has plenty of competition. Doctor on Demand raised $21 million in August. Another telehealth startup, HealthTap added video doctor visits to its mobile health platform at the end of July.
Other investors in Teladoc’s new funding round include FLAG Capital Management, Greenspring Associates, Mellon and QuestMark Partners, as well as its current investors Cardinal Partners, HLM Venture Partners, Kleiner Perkins Caufield and Byers, New Capital Partners, and Trident Capital.
Teladoc has now raised a total of $96.6 million in venture funding.
