SUD Treatment Platform Workit Health Raises $118M in Series C Round

Workit Health, a digital provider of substance use disorder (SUD) treatment, has raised $118 million in Series C funding.

The Ann Arbor, Michigan-based company announced Thursday the results of the round, which was led by Insight Partners. Additional participants in the round included CVS Health Ventures, FirstMark Capital, BCBS Venture Fund and 3L Capital.

Founded in 2015, Workit Health provides clinical services for individuals struggling with SUD and co-occurring conditions.

“We’re establishing a new model for addiction care in America, and proud to be working with partners at the cutting edge of high growth in health care and technology.” Workit Health Co-Founder and Co-CEO Robin McIntosh said in a press release regarding the funding round.

Users can sign up to Workit to receive SUD treatment, along with help for other behavioral conditions such as disordered eating, gambling problems and sex addcition. The platform also provides medication-assisted treatment (MAT) drugs like suboxone and naltrexone for opioid use disorder (OUD), as well as naltrexone and acamprosate for alcohol use disorder (AUD).

Workit therapists additionally provide care for users dealing with stress, anxiety and depression. The platform also provides primary health care for co-occurring physical conditions such as HIV and hepatitis C.

Licensed clinical support for SUD and co-occurring conditions is available to Workit users in Alaska, California, Florida, Michigan, Minnesota, New Jersey, Ohio, Oregon, Washington and Texas. The company’s clinical and counseling services provide coverage to 93 million insured individuals, with coaching services also available.

According to the company, 84% of Workit users stick with treatment for over 30 days, compared to an industry average of 33%. Workit also says that its users have reported a decrease in addictive behaviors and anxiety, with 41% of members continuing their recovery through the platform more than 12 months after starting.

The company’s funding round comes a week after the Centers for Disease Control and Prevention (CDC) released provisional data showing SUD overdose deaths establishing new records during the pandemic.

Between March 2020 and March 2021, more than 96,000 Americans died from overdoses, marking an increase of nearly 30% over the time span. The tally was the highest ever for a 12-month period, and could potentially increase given that the final data count has not yet been completed.

Last December, Workit raised $12 million in Series B funding led by FirstMark Capital — which was the company’s most recent round before its Series C haul. Workit said that it planned to use its latest funding to facilitate its growth into new markets and expand its primary and psychiatric care offerings.

The company also said it hopes to make its services available nationally by 2023.

“Workit is at the forefront of massive acceleration in telemedicine adoption, which is key to solving the overdose crisis that was exacerbated by COVID-19,” Workit Co-Founder and Co-CEO Lisa McLaughlin said in the press release. “The risk factors associated with substance use have dramatically increased. This latest funding round helps us grow our relationship-based, telehealth-first, value-based approach into new regions that are in desperate need of simple and trusted solutions like Workit.”

McLaughlin and McIntosh met in the late 2000s while being treated for AUD by Alcoholics Anonymous. The two, at different times, previously attended the University of Michigan as undergraduates.

In addition to AUD, McIntosh was treated for an eating disorder as a teenager.

“We lost a record-breaking 90,000 people to overdose deaths last year due to an outdated treatment system,” McIntosh said in the press release. “Thousands of inpatient programs shuttered, leaving patients nationwide stranded and cut off from access to care. With Workit, starting on the journey to recovery is as simple as downloading an app.”

Workit also announced that Nicole Shimer, who is a vice president at Insight Partners, is joining its board of directors.

“Insight’s investment in Workit Health speaks to their outcomes and impact—they’re leading the revolution to modernize addiction care,” Shimer said in the press release. “We’re looking forward to supporting Workit’s long term vision to help more people across the United States break free of drug and alcohol addiction.”