Digital autism provider AnswersNow has closed its $11 million Series A funding round.
The Applied Behavior Analysis (ABA) provider plans to use the new funding to expand its services to more states and expand its team of doctoral and masters level clinicians. We will also use our capital to improve the user experience on our virtual platform.
This funding comes at a time when autism rates are rising and demand for services is high. One in 44 of her children is diagnosed with an autism spectrum disorder (ASD), according to the CDC.
This has created a huge demand for ABA services, a type of one-on-one therapy focused on improving specific behaviors that has become the gold standard in autism treatment. BCBA) has only 58,345 people.
“One of the most serious issues facing families of individuals with autism, ADHD, and other developmental disorders is access to quality care. AnswersNow is committed to changing that with our approach and virtual platform. ,” said Jeff Beck, CEO and co-founder of AnswersNow, in a statement. “This latest funding round will allow us to impact the lives of more families, many of whom have been on waiting lists for months or do not have a single board-certified clinician. I live in the area.”
Based in Richmond, Virginia, the startup was launched in 2017. Its business model focuses on matching families and clinicians for virtual ABA therapy on its platform. AnswersNow currently works with major insurers such as Medicaid, UnitedHealthcare, Aetna, Cigna, Anthem and Blue Cross Blue Shield.
Lane Capital led its Series A funding round with participation from American Family Institute for Social Impact, Blue Heron Capital, Difference Partners and former Kadiant CEO Lani Frits.
2022 has been a turbulent year for ABA providers despite the growing demand for autism services.
Venture-backed digital autism provider Elemy announced its fourth round of layoffs in December. The cut was part of the company’s plan to evolve from a technology-backed autism service provider to a mostly pure software company.
But digital autism companies aren’t the only ones facing headwinds in 2022. Last summer, several autism providers backed by Private His Equity announced layoffs, including The Centers for Autism and Related Disorders (CARD) and 360 Behavioral Health. In November, CARD closed operations in 10 of his states.
Over the past few years, ABA providers have prioritized rapidly expanding their footprints to gain market share and leverage in rate negotiations. Throughout 2022, some companies have had to scale back operations and limit reimbursement increases to match the economic realities of their local job markets.
Many autism providers have been forced to cut back, but there seems to be still venture interest in this area.
For example, Soar Health, which provides autism-related treatments, raised $16 million in equity investments late last year. Additionally, pediatric virtual behavioral health provider Brightline announced an additional $10 million in funding for him in July, bringing the total raised just short of his $220 million.
