Teladoc lands $50M in venture funding
Teladoc, a telehealth provider, has secured a $50 million round of equity funding led by Jafco Ventures, a California technology venture capital firm. The Dallas-based company, chosen as one of Healthcare Informatics’ “Up and Coming” companies for 2014, provides 24/7 access to medical care for adults and children experiencing non-emergency medical issues via phone, secure online video, mobile app or a private, walk-in kiosk.
This year Teladoc claims it is on target to complete more than a quarter-million medical consults across the United States, while continuing to maintain an average physician call-back time of less than 16 minutes. The approximately 500 physicians who work for Teladoc are all independent contractors, who do the remote work as part of their overall practice. The company’s services are used by some of the country’s largest companies and health insurers including Blue Shield of California; Cash America; Gallup; Highmark Inc.; Ignite Restaurants, the holding company for Romano’s Macaroni Grill, Brick House Tavern + Tap and Joe’s Crab Shack; Rent-A-Center; and T-Mobile.
Earlier this year CEO Jason Gorevic told HCI that Teladoc has proven the growth model for its business. “Now we are looking for ways to invest to continue to expand the scope of our offerings,” he said.
In a prepared statement about the new funding, Gorevic said that Teledoc has doubled revenue each of the last two years. "This sizeable investment will allow us to quickly develop new products and services that deliver additional value for our customers while simultaneously expanding into new markets and distribution channels,” he said. “Our goal is to extend our significant lead in the industry such that Teladoc is the de facto brand in telehealth.”
Jafco was joined by other new investors, including FLAG Capital Management, Greenspring Associates, Mellon and QuestMark Partners, as well as its current investors Cardinal Partners, HLM Venture Partners, Kleiner Perkins Caufield and Byers, New Capital Partners and Trident Capital to complete Teladoc’s $50 million round of funding.
