Hollywood often paints a picture of gloomy rooms filled with people sharing their struggles for addiction recovery. However, there are new tech-driven approaches and these are completely different than what is believed to be. The sector is attracting significant investment. Many people in treatment now use their smartphones to connect with care providers and the process is through messages and video chats. They also use apps to manage the prescriptions as well as monitor the progress. It is of course proving to be effective. It is also attracting substantial funding.
Several addiction-focused virtual care startups have lately received hundreds of millions of dollars in funding. The startups aim to provide scalable as well as accessible treatment options.
Oregon-based Boulder Care managed in raising $35 million lately. The startup provides long-term virtual care for those who are struggling with abuse disorders. It offers prescription medications and online support from opioid and alcohol addiction.
Nashville-based Wayspring offers clinical and support for people with substance use disorder. It recently secured an investment led by CVS Health Ventures. It has managed in raising over $116 million.
14 addiction treatment-focused startups have raised $810 million in recent funding rounds. New York-based digital clinic for substance abuse, Pelago, raised $58 million in March. Its total funding was thereafter raised to $137 million.
The rise in investments to such startups is basically due to increased demand for addiction treatment. National Council for Mental Wellbeing reveals more than 40% of Americans who need substance abuse treatment do not receive it. Many forgo care because they can’t access it or afford it. The scenario is more in rural areas and such cities which are having high rates of substance abuse.
