Telemedicine Startup Lands $1.3 Million (Regroup Therapy)
Featured on Crain’s Chicago Business
Regroup Therapy, a telemedicine startup for mental health treatment, has raised another $1.3 million from backers that include former Walgreens CEO Greg Wasson.
The funding was led by Hyde Park Angels and included OCA Ventures; Impact Engine; Lon Chow; Grubhub co-founder Mike Evans; Wasson Enterprise, the family investment office of Greg Wasson; his wife, Kim; and brother, Stewart Wasson, also a former Walgreens executive. New Stack Ventures and Mark Agnew, president of Lou Malnati’s, also invested.
Regroup, founded by David Cohn, makes software used to securely provide counseling over the internet from its network of more than 2,000 contract mental-health providers. The company started selling its services a year ago to customers that include Sinai Health System, OSF Healthcare and Oak Street Health.
The company, which got its start at health-tech incubator Matter in the Merchandise Mart and now is based in Ravenswood, previously raised $500,000.
It has grown to nine employees, up from three a year ago. The company has added workers in sales, engineering and product development, and will continue to hire. Cohn says he expects revenue of about $500,000 in the next 12 months.
Mental-health providers are in short supply, and it’s often difficult to deliver services to patients outside cities and towns where providers are located. But online videoconferencing solves that problem.
“People know this is the future,” Cohn says of telemedicine. “It provides them a lot more flexibility.”