dotcom therapy Raises $13M for Kids' Mental Health

DotCom Therapy Secures $13 Million in Series A Funding

DotCom Therapy, a company specializing in pediatric teletherapy, has recently finalized a $13 million Series A funding round. While numerous teletherapy companies are attracting venture capital within the burgeoning mental health technology sector, DotCom Therapy distinguishes itself through a concentrated focus on providing therapy services specifically for children.

Company Origins and Early Observations

The company was initially established in 2015 through the collaboration of Rachel Mack Robinson, a pediatric therapist practicing at a neurology clinic in Missouri, and Emily Purdom, a speech language pathologist. Purdom is no longer associated with the company’s operations.

Robinson and Purdom identified a significant disparity: approximately one in five children in the United States experiences a mental health condition, such as ADHD, anxiety, or depression. However, only around 20% of these children receive care from a qualified mental healthcare professional, as indicated by data from the CDC.

Teletherapy as a Solution to Access Gaps

DotCom Therapy’s core strategy centers on leveraging teletherapy to bridge this treatment gap.

In its early stages, Robinson proactively contacted school districts nationwide to propose pilot teletherapy programs. The first successful implementation occurred in a rural district in Alaska, combining both in-person and remote therapy delivery.

Current Services and Partnerships

Currently, the company delivers fully online speech, occupational, and behavioral therapy. A key aspect of their approach remains collaboration with schools and youth organizations, including providing mental health support for the Little League World Series Tournaments.

To date, DotCom Therapy has established partnerships with over 400 schools, spanning more than 100 districts across 38 states.

Expansion Plans and the Zesh Platform

The recent funding will facilitate expansion beyond school district partnerships, enabling the company to broaden its reach to children both within and outside of the educational system. This includes scaling their Zesh platform, an online therapy service that connects children with therapists, manages scheduling, and hosts video sessions.

“Our primary client base has been K-12 school districts, and we’ve successfully established a strong presence in the education market,” explains Robinson. “However, we are actively seeking to expand our footprint into health systems and offer services to private patients through various health insurance plans.”

Investment Details and Board Appointments

This Series A round was spearheaded by New Capital Partners, a firm with a proven track record in the telemedicine industry, having been early investors in Teladoc, which went public in 2015. Additional investment came from LRVHealth and OSF Ventures.

Will Cowen (LRVHealth), Stan Lynall (OSF Ventures), and James Outland (New Capital Partners) will be joining DotCom Therapy’s board of directors. The company’s total funding now amounts to $14 million.

The Impact of the Pandemic

Robinson believes that prior to the pandemic, the biggest challenge would have been convincing schools and families to adopt teletherapy. The COVID-19 pandemic has fundamentally altered this landscape.

The pandemic prompted the relaxation of restrictions regarding telehealth reimbursement and geographic limitations. Telehealth usage surged in April 2020, and while it has since stabilized, it remains approximately 38 times higher than pre-pandemic levels, according to a July 2021 McKinsey report.

Navigating a Competitive Landscape

As DotCom Therapy expands beyond school-based partnerships, it will encounter increased competition within the broader mental health and telehealth sectors, facing rivals such as established companies like TalkSpace and numerous other startups.

Robinson asserts that the company’s specialized focus on children’s telehealth, particularly in occupational and speech therapy, will be a key differentiator in this increasingly crowded market.

“Many of our competitors, such as Teladocs and Gingers, primarily target the adult population,” she notes.

Research and Validation of Teletherapy Effectiveness

DotCom Therapy benefits from research supporting the efficacy of online speech and occupational therapy for children. A systematic review of seven studies indicated that telehealth-delivered speech and language therapy yielded improvements in children’s language skills comparable to those achieved through in-person therapy, although further research is still needed.

A common criticism of other mental health telemedicine companies is a lack of platform-specific validation. DotCom Therapy has published white papers suggesting positive outcomes for children participating in their teletherapy program. However, Robinson did not disclose details of any ongoing validation studies specifically focused on the company’s services.

She did mention that the company collaborates with advisors Andrey Ostrovsky and Colleen Kraft to develop and monitor outcome metrics for each service.

“This will encompass DSM-5 cross-cutting measures, ASHA’s functional communication metrics, and proprietary occupational therapy outcomes generated by a team of occupational therapists with expertise ranging from master’s to doctoral levels,” says Robinson.

A Comprehensive Service Model

DotCom Therapy’s approach extends beyond simply providing a platform; it offers a comprehensive service, particularly within school districts. For example, if a school requires speech therapy for 150 students, DotCom Therapy will assess the necessary number of therapists.

“We utilize a proprietary calculator to determine the appropriate therapist allocation for each location,” Robinson explains. The company’s website states that matching therapists with students typically takes around 21 days.

DotCom Therapy also coordinates with school administrators, facilitating their presence during therapy sessions (a demonstration is available here), and manages all scheduling and session tracking.

Employee Retention and Future Growth

Currently, DotCom Therapy employs approximately 200 therapists, all classified as W-2 employees rather than independent contractors. The company reports a 97% employee retention rate and a 90% customer retention rate.

With the Series A funding, Robinson aims to expand operations to all 50 states by January and to develop services for private families.

“I feel a strong sense of urgency to grow rapidly, but in a measured way, ensuring we can meet the increasing demand without compromising the quality of our services. My primary concern is maintaining a healthy growth pace,” concludes Robinson.