Regroup Therapy has had a whirlwind of a year.
The Chicago-based startup, which uses video technology to deliver mental health services to underserved areas, announced on Thursday that it has raised a $6 million Series A round of funding led by OSF Ventures.
Regroup Therapy, which raised a $1.8 million seed round last spring, has seen its annual recurring revenues grow by nearly 4,000 percent over the past year.
“We were aiming for half a million dollars annual revenues last year, but we’re on track to book more than $4 million,” said founder and CEO David Cohn. “Our seed funding allowed us to invest in more people. When we got away from trying to do three or four times more than is humanly possible, we discovered that our processes were actually really good — we just needed more people out there.”
Although he is excited about his company’s growth, Cohn said Regroup Therapy’s primary focus remains on its mission to improve access to mental health care services.
“The big issue we’re trying to solve is that there’s a real shortage of mental health providers in the right place at the right time,” said Cohn. “We want to make sure we can get the right clinicians to the right patients faster, and with a higher quality.”
Regroup Therapy does so by hiring psychiatrists, advanced psychiatric nurses, therapists and social workers who deliver mental health services through its HIPAA-compliant video platform. These behavioral health experts serve as a virtual staff for healthcare providers who don’t have those resources available locally.
Cohn said appointments are currently delivered by a mixture of part-time contractors and full-time employees, but that the percentage of full-time employees has steadily grown alongside the demand for the company’s services.
Cohn said expansion beyond traditional healthcare systems and into new underserved settings like correctional facilities and Native American healthcare services have been a major catalyst for Regroup Therapy’s growth.
“We feel like we’re still barely scratching the surface, and that a lot of people are still struggling to get access to good services,” he said. “That’s horrible for those people and their families, but it’s also really bad for the economy. And we believe this is the best way to solve that problem.”
With 15 full-time employees to date, Cohn expects to double his company’s headcount this year. The bulk of hiring will be in sales and business development, but the company will also be hiring software engineers, physicians, physician recruiters and account managers.
Lead investor OSF Ventures is part of the OSF HealthCare system. Hyde Park Angels, OCA Ventures, HLM Venture Partners, Furthur Fund and Impact Engine also participated in the round.
Image via Regroup Therapy.
Read more at BuiltinChicago