Talkspace, a digital therapy startup with a bevy of celebrity supporters, could soon be changing hands.
Bloomberg first reported the news Tuesday, citing “people with knowledge of the matter.” Those sources told the publication that the text-based therapy platform is working with advisers on a potential sale.
Headquartered in New York City, Talkspace is a subscription-based company that connects users to licensed therapists through online and mobile channels.
To date, it has raised more than $106 million, according to the fundraising tracker Crunchbase, with notable investors including Revolution Growth, Norwest Venture Partners, Qumra Capital and Spark Capital, among others. Plus, the company counts Demi Lovato and Michael Phelps among its celebrity supporters.
Amid the coronavirus, digital behavioral health providers like Talkspace have boomed. For example, in March, a spokesperson for the startup told Behavioral Health Business that user volume had increased 65% year-over-year and that B2B inquiries were up 150%.
While Talkspace CEO Oren Frank stopped short of confirming the sale rumors, he said increased demand has translated to increased interest in the purchase of the company.
“Interest in acquiring the company is not new — and as demand for telehealth services has grown dramatically over the months of the COVID-19 pandemic, that interest has grown with it,” Frank, who founded the company with his wife Roni back in 2012, said in a statement shared with BHB.
Meanwhile, sources told Bloomberg that Talkspace has drawn attention from special purpose acquisition companies (SPACs), as well as health care and technology firms. Additionally, they said the company could be valued at as much as $1 billion if a sale does occur.
However, there’s still a chance Talkspace may choose not to sell, sources said.