Talkspace, the global leader in online therapy, today announced it has closed $31 million in new financing. Qumra Capital, Israel's most active growth stage fund, led the Series C round with participation from existing investors including Norwest Venture Partners, Spark Capital, SoftBank, Compound Ventures and FirstTime. Erez Shachar, a Managing Partner at Qumra Capital, will join the Talkspace board of directors.
Talkspace will use the investment to accelerate the company's growth as it continues to erase the barriers for those seeking treatment and attract new clients to its innovative 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.
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."
Talkspace raised its Series A round in 2015 and Series B round in 2016. The company has now raised a total of $60 million in funding.
Talkspace connects people with licensed therapists through its web and mobile apps. As the leading online therapy company, Talkspace revolutionized mental health care access by bringing the dialogue between therapists and their clients into the digital age. Founded with a mission to eliminate the stigmas associated with mental illness and make therapy more available to millions of people, Talkspace's flagship product, Unlimited Messaging Therapy™, has already been used by more than 500,000 people to contact a therapist. For more information, please visit https://www.talkspace.com. To learn more about online therapy, please visit https://www.talkspace.com/online-therapy/.
About Qumra Capital
Qumra Capital is an Israeli late-stage venture fund, focused on investments in the rapid growth of technology companies, aiming at transforming start-ups into global leaders in their fields. Qumra was founded by Erez Shachar, Boaz Dinate and Sivan Shimri-Dahan. In the last two years Qumra invested in Fiverr, Jfrog, Riskified, EyeView, Signals, Sweet-Inn and Minute Media. For more information, visit www.qumracapital.com.