Digital alcohol use disorder treatment provider Ria Health has raised about $12.5 million as part of it Series B funding round
In January, the San Francisco-based startup disclosed that it has raised a $6 million debt and option round. On Feb. 25, it disclosed raising $6.5 million in an equity sale, according to public documents. This brings the company’s total funding to about $30.5 million.
The private equity firm Peloton Equity LLC led the round. Existing investors SV Health Investors, BPEA Private Equity and SOSV also joined the round. Those three latter firms also participated in Ria Health’s $18 million Series A funding round.
With the new funds, Ria Health will expand its clinical model, establish new payer partnerships and accelerate its sales and marketing, the company said in a statement.
Tom Nix, the CEO at that time of the Series A funding announcement, said the company was at the “beginning of a long marathon.” Bill Stapleton succeeded Nix as CEO in May 2023. Nix transitioned to chief strategy officer and then left the company at the end of that year. Ria Health was founded in 2016.
Ria Health uses a 100% online care model that connects patients with medications, prescribers, coaching and therapy services aimed at helping them stop drinking or drink less. Its telehealth platform integrates digital breathalyzers. It is in-network with major insurance plans, according to its website. It announced a deal with Highmark in 2021.
In April 2024, Ria Health joined a consortium of digital behavioral health providers organized by digital therapy giant Talkspace Inc. (Nasdaq: TALK).
Its services are available in all 50 states and has partnerships with 15 payers, the statement reads.
Digital behavioral health startups are a favorite among venture capitalists. According to a report by Rock Health, the industry topped the list of highest-funded clinical indications for the sixth year in a row in 2024, with $1.4 billion raised. Most of that funding went to larger, more established players, leaving little funding for smaller companies, creating a “David and Goliath” dynamic.
Today, organizations in this space have never felt more pressure to perform. Investors expect their portfolio companies to turn profits faster and be able to demonstrate sustainable services compared to the peak of funding in the space from 2020 to 2022.
Still, smaller and newer ventures are getting dollars to fuel their missions. BHB has tracked several this year so far.
Editor’s note (March 6, 2024): Today, Ria Health released a statement detailing what it now calls a Series B round. The story has been updated to reflect those new facts.
