Talkspace Chats Up $31 Million Funding

NEW YORK — Talkspace, which connects users with therapists online, has closed $31 million in new financing. Qumra Capital of Israel led the Series C round with participation from existing investors Norwest Venture Partners, Spark Capital, SoftBank, Compound Ventures and FirstTime.

Talkspace raised its Series A round in 2015 and Series B round in 2016 and has now raised a total of $60 million in funding.

Talkspace will use the investment to erase the barriers for those seeking treatment and attract new clients to its online therapy platform. Since it was founded in 2012, Talkspace has introduced a more affordable and convenient way of accessing mental health care for over 500,000 people in the United States and created a national network of thousands of professional therapists. Approximately 70 percent of Talkspace’s clients have never previously had therapy.

Customers pay for therapy plans starting at $32 per week and can send messages or chat via video with their therapist 24 hours a day, 7 days a week.

Clinical research has established that online therapy can be better than face-to-face, and that Talkspace clients have higher satisfaction compared to traditional therapy in areas concerning convenience, affordability and getting help when needed. “This round comes at a time when Talkspace is experiencing dramatic growth,” said Oren Frank, CEO and Co-Founder of Talkspace. “More people than ever are using our platform for their mental health needs. The additional funding gives us the opportunity to build upon our momentum. We have built a consumer-grade Behavioral Health Platform and proven its efficacy and superior efficiency. We’re now ready to expand and scale our offering into the commercial health care markets. We appreciate the vote of confidence from our investors as we profoundly change the way mental health care is delivered.”

“With tens of thousands of clients every month, Talkspace has shown extraordinary innovation in an otherwise traditional market,” said Erez Shachar, Managing Partner at Qumra Capital. “Beyond Talkspace’s strong growth, we see a huge opportunity to prove that technology cannot only make our material needs more accessible, but is also an excellent fit to help far more complicated, emotional and personal needs. Roni and Oren Frank have successfully married technology with the very fundamental need of almost everyone for accessible and affordable professional behavioral care.”