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$TDOC acquired BetterHelp in 2015 to provide online mentall counseling. The #1 competitor @talkspace is planning to go public via a SPAC $HEC https://www.bloomberg.com/news/articles/2021-01-11/talkspace-said-near-deal-to-go-public-via-doug-braunstein-s-spac
Talkspace has raised over $100M so far in funding. In 2020, thanks to Covid, revenues, membership and app downloads increased dramatically. The proposed valuation for Talkspace is $1.5B for a <$200M company (likely not profitable). *Revenue is estimate* https://blog.zencare.co/betterhelp-vs-talkspace/
Over 1.5 Million consumers have used TalkSpace and it counts about 5000 licensed therapists as providers. It is a marketplace - matching those needing mental health counseling to those who are licensed to provide it.
The online therapy market is about $500-$700M now, growing fast
The online therapy market is about $500-$700M now, growing fast
The NYT had a piece on TalkSpace, which was very critical about the company, its culture - prioiritizing growth over patient safety and privacy, and it feels like a gossipy read. https://www.nytimes.com/2020/08/07/technology/talkspace.html
The overall "Mental Health" market is large, over $15B in the US alone and there are multiple online providers including BetterHelp, ThriveTalk, BreakThrough and MDLive that offer similar services. https://askwonder.com/research/online-virtual-therapy-market-70odab0h9
TalkSpace makes money like a subscription business, with patients paying $49/month to $250 (unlimited chats) per month for "chat, video and phone" sessions with licensed therapists. TalkSpace acquired Lasting to get into Couple's therapy counselling https://www.businessinsider.com/talkspace-purchased-lasting-to-expand-offerings-consumer-base-2020-11
Talkspace was founded in 2012 by Roni and Oren Frank (wife and husband) after their experience with couple’s therapy. Company has raised $106+ Million from Norwest, Qumra Capital, Spark Capital and many other investors. https://www.crunchbase.com/organization/talkspace
In America over 40 Million people suffer from some form of mental health issues – depression, relationships, anxiety, etc.
Talkspace helps them message with, connect and seek help from the therapist online instead of in person. https://www.htfmarketreport.com/reports/2158515-global-online-therapy-services-market-1
Talkspace helps them message with, connect and seek help from the therapist online instead of in person. https://www.htfmarketreport.com/reports/2158515-global-online-therapy-services-market-1
Market segment by Type, the product can be split into
Cognitive Behavioral Therapy
Psychodynamic Therapy
Personal Centered Therapy
The United States tele-mental health market is projected to grow at a CAGR of 22.5% during the period 2016-2021.
Cognitive Behavioral Therapy
Psychodynamic Therapy
Personal Centered Therapy
The United States tele-mental health market is projected to grow at a CAGR of 22.5% during the period 2016-2021.
Amwell data thinks mental health services will see a sustained shift to virtual-only regardless of the pandemic's trajectory: 62% of consumers said they'd prefer a virtual visit for their mental health—even after it's safe to book an in-office appointment.
https://finalstepmarketing.com/wp-content/uploads/2017/05/Mental-Health-Services-Research.pdf
https://finalstepmarketing.com/wp-content/uploads/2017/05/Mental-Health-Services-Research.pdf
TalkSpace will still have to compete with telemedicine providers offering all-encompassing care. Some of the biggest names in telehealth—like Amwell and Teladoc offer these services as well. https://blog.zencare.co/betterhelp-vs-talkspace/
TalkSpace and others accept health insurance so there is support for mental health from the payees
How it works: 1) Typically a patient / consumer goes online, fills out an intake form (questionnaire).
2. TalkSpace matches them with a certified licensed provider
3. The consumer and therapist connect using the TalkSpace platform
2. TalkSpace matches them with a certified licensed provider
3. The consumer and therapist connect using the TalkSpace platform
There are benefits for patients and therapists in the form of asynchronous (real time messaging based) communication, but the benefits are not verified or proven. https://www.apa.org/monitor/2017/02/online-therapy
Where TalkSpace will see growth is signing up large companies - $GOOG is a customer. These large employers offer TalkSpace as a employee health benefit. Along with app subscriptions to Calm & Headspace (meditation) https://www.openpr.com/news/1875310/online-therapy-services-industry-2019-market-size-growth
Psychologist Todd Essig has criticized Talkspace in four different articles for conflicting business and clinical interests, making scientific claims about its effectiveness, violating patient confidentiality, and other issues
https://en.wikipedia.org/wiki/Talkspace
https://en.wikipedia.org/wiki/Talkspace
But for those of us who communicate with friends and family primarily using email, text message or Facebook, text-based therapy makes a lot of sense. https://www.wsj.com/articles/all-you-can-text-therapy-services-1413398763
According to Mental Health America’s report, over 44 million Americans have a mental health condition. Yet there’s still a stigma about mental illness. https://medium.com/authority-magazine/talkspace-founders-roni-and-oren-frank-if-we-all-shared-the-fact-that-we-struggle-from-time-to-e3aaa6b67698
TalkSpace has used celebrities such as Michael Phelps to talk about mental health and its importance as well.
Phelps is a shareholder and advisory board member of Talkspace https://health.usnews.com/wellness/mind/articles/2018-10-26/michael-phelps-gets-real-about-mental-illness
Phelps is a shareholder and advisory board member of Talkspace https://health.usnews.com/wellness/mind/articles/2018-10-26/michael-phelps-gets-real-about-mental-illness
TalkSpace also provides psychiatry services, including prescription fulfillment, adolescent therapy, and couples counseling. https://news.crunchbase.com/news/digital-therapy-startup-talkspace-raises-50m-in-revolution-led-series-d/
Mukund's analysis:
1. I want to see the revenue numbers and growth - most of the numbers I shared are estimates.
2. I hold $TDOC and am not sure I need both companies in my portfolio, but can be convinced otherwise
3. The company has a lot of negative press as well - concerning
1. I want to see the revenue numbers and growth - most of the numbers I shared are estimates.
2. I hold $TDOC and am not sure I need both companies in my portfolio, but can be convinced otherwise
3. The company has a lot of negative press as well - concerning
As I get more data on the company I will share.
You should assume I may take a small position and trade or quickly get in and out. Not yet convinced about holding this yet. https://askwonder.com/research/online-virtual-therapy-market-70odab0h9
You should assume I may take a small position and trade or quickly get in and out. Not yet convinced about holding this yet. https://askwonder.com/research/online-virtual-therapy-market-70odab0h9
