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The Virtual Clinic Solving Substance Abuse

March 28, 2024
x min read

Can technology play a role in solving substance abuse? There’s a startup who believes it can.

What’s happening:

  • Y Combinator backed healthcare startup Pelago has raised $58M USD in a Series C financing round
  • The round was led by Atomico and saw participation from notable venture capital funds including Octopus Ventures, Eight Roads and GreyMatter Capital

The big idea:

  • Pelago has built a virtual technology platform to enable individuals struggling with substance abuse and opioid addiction to get seamless access to treatment options, physician support and licensed counsellors
  • Pelago’s healthcare app allows individuals to access digital cognitive behavioural therapy, digital therapeutics to deal with cravings and data insights into their recovery journey

By the numbers:

  • Pelago has raised $151M USD in venture capital funding since inception
  • In the first ever medical claims analysis on substance abuse management, Pelago demonstrated an average cost savings of more than $9K per patient which was largely attributed to lower medical spend
  • Pelago has seen 44% of their users on average quit tobacco within 12 months
  • On average, Pelago users have reduced their alcohol consumption by 62% within the first 30 days of getting access to their support network and technology

Going deeper:

  • Pelago’s virtual clinic technology is used by some of the largest companies in the United States, including Hewlett Packard, MetLife, General Mills, Philips, Live Nation and others

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