Teladoc Raises $50 Million Series C To Expand Its Telehealth Platform

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Dallas, TX-based Teladoc announces a $50 million Series C round led by Jafco Ventures.  Additional capital was invested in the round by a large group of VC firms, including: FLAG Capital Management, Greenspring Associates, Mellon and QuestMark Partners, and returning investors Cardinal Partners, HLM Venture Partners, Kleiner Perkins Caufield and Byers, New Capital Partners, and Trident Capital. Teladoc’s previous round closed for $15 million just a year ago. Combined with all of its previous fundraising efforts, the new round brings the company’s total funds raised to $74 million, since its 2002 launch.

With the cost of healthcare rising, employers, payers, and now some health systems are actively looking for new care delivery methods that will allow them to effectively treat patients, but in the cheapest possible care setting, which may now be the patient’s own home. Teladoc provides telephone and video teleconferences to address routine health issues that might otherwise be treated in an ER or urgent care center. Patient’s are evaluated by a health professional, and if a referral or prescription is needed, they can be arranged for during the call.

In a recent SEC filing announcing the investment round, Teladoc reported its income at between $25 million and $100 million per year, an increase over its 2013 earnings of $20 million. Teladoc has been aggressive in the telehealth space in its effort to claim market leader. In 2013, the company acquired Consult A Doctor for an undisclosed sum. Consult A Doctor was carrying $5 million in VC-backed investments, and was acquired just days after Teladoc closed its $15 million Series B in September 2013.

“Teladoc has experienced phenomenal growth. After doubling revenue in each of the last two years, we look to accelerate this trend. This sizeable investment will allow us to quickly develop new products and services that deliver additional value for our customers while simultaneously expanding into new markets and distribution channels. Our goal is to extend our significant lead in the industry such that Teladoc is the de facto brand in Telehealth.” – Jason Gorevic, CEO of Teladoc.

Telehealth services have a seemingly firm place in the future of care delivery, and VC funding is reacting accordingly. Just last month, Doctor on Demand, a competing telehealth startup, raised a $21 million Series A led by Venrock and with contributions from notable entrepreneurs Sir Richard Branson. In January, MDLive raised a $23 million investment round to launch its telehealth platform, bringing its total raised to $50 million.


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