Ophelia, a New York-based provider of virtual opioid use disorder (OUD) treatment services, has landed $15 million in Series A funding.
The round, which the company announced Thursday, was led by Menlo Ventures. Other investors include Y Combinator, General Catalyst and Refactor Capital, as well as the founders of Harry’s, Warby Parker, PillPack, Allbirds, Carbon Health, Flatiron Health and Lambda School.
By way of its technological platform, Ophelia provides medication-assisted treatment (MAT) to individuals battling OUD. Those who sign up for Ophelia’s services are provided with a care team consisting of a prescribing clinician, a nurse and a care coordinator.
The process starts with an initial virtual visit, where the physician lays out a proposed treatment plan, which includes a suboxone prescription. From there, Ophelia’s users can speak with their clinician by video or phone on a weekly, bi-weekly or monthly basis, with services available mornings, afternoons and evenings seven days a week.
Ophelia memberships are $195 per month excluding the cost of medication, which most insurance plans usually cover.
Ophelia, which was founded in 2019, said that it plans to use the money raised in its latest funding round to continue building and expanding its services to patients nationwide. The company also said it will soon start accepting insurance, including Medicare and Medicaid.
“We’re extremely excited to take what we’ve built and expand it across the country,” Zack Gray, Ophelia’s co-founder and CEO, said in a press release announcing the funding. “Today, 80% of Americans with [OUD] don’t get medical treatment because of barriers related to stigma, cost, and work or family obligations that make going to rehab impossible. Instead, many find it easier to buy addiction medication on the street, even if it means spending a thousand dollars per month. With Ophelia, patients get safe and reliable access to lifesaving treatment that’s already covered by most insurance plans.”
Virtual providers like Ophelia have been advertising themselves as an alternative resource to brick-and-mortar operators, which can be harder for patients to access due to issues such as transportation and stigma, as well as the pandemic.
Ophelia’s recent fundraising comes as huge amounts of money have been poured into the virtual behavioral health space, which last year brought in record levels of funding, according to venture capital firm Rock Health. The increased funding coincided with the pandemic and the relaxation of federal regulations to allow for more telebehavioral health services to be rendered remotely.
Since then, data has shown that patients have made subsequently more use of tele-treatment options within the last year.
“Ophelia is helping lead the way to better healthcare solutions in areas of critical need for deeply underserved populations,” Greg Yap, a partner at Menlo Ventures, said in the press release. “I’m thrilled to be partnering with them in their fight against the opioid epidemic.”