How Much Did Pelago Raise? Funding & Key Investors

Pelago has successfully navigated seven funding rounds, attracting investment from notable venture capital firms such as Kinnevik, Octopus Ventures, and Atomico. The virtual clinic specializes in providing personalized, digital-first support for managing substance use, including tobacco, alcohol, opioid, and cannabis use.

With a focus on evidence-based tools and live clinical support, Pelago aims to reduce healthcare costs for organizations while offering stigma-free care to its members. Keep reading to explore the intricacies of Pelago's fundraising journey and the investors backing this innovative platform.

What Is Pelago?

Pelago, based in New York, New York, is a virtual clinic specializing in substance use management. The company operates in the healthcare, medical, mHealth, rehabilitation, and wellness industries, providing personalized, evidence-based support for managing tobacco, alcohol, opioid, and cannabis use.

With an employee count ranging from 101 to 250, Pelago offers a range of services, including digital tools, live counseling, and medication-assisted treatment. The company aims to reduce healthcare costs and improve productivity for employers and health plans while supporting individuals in achieving their personal goals related to substance use.

How Much Funding Has Pelago Raised?

1. Series Unknown
   • Amount Raised: Not publicly disclosed
   • Date: January 2017
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To establish initial operations and develop the platform.
2. Non-Equity Assistance
   • Amount Raised: Not publicly disclosed
   • Date: September 2017
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To support early-stage development and operational costs.
3. Seed
   • Amount Raised: USD 2,600,000
   • Date: May 2018
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand the team and enhance the platform's capabilities.
4. Series A
   • Amount Raised: USD 12,000,000
   • Date: March 2020
   • Lead Investors: Octopus Ventures
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand into opioid and alcohol addiction treatment.
5. Series B
   • Amount Raised: USD 64,000,000
   • Date: July 2021
   • Lead Investors: Atomico, Kinnevik
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand services and adapt to increased demand for telehealth solutions.
6. Series B
   • Amount Raised: USD 15,000,000
   • Date: July 2022
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To further develop the platform and expand market reach.
7. Series C
   • Amount Raised: USD 58,000,000
   • Date: March 2024
   • Lead Investors: Atomico
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To accelerate product roadmap, extend continuum of care, and advance clinical research efforts.

Total Amount Raised: USD 151,600,000. Current Valuation: Not publicly disclosed.

Key Investors

• Atomico
  • Details: Atomico is a leading venture capital firm that invests in innovative technology companies. Founded by Skype co-founder Niklas Zennström, Atomico focuses on helping disruptive technology startups scale globally.
  • Investment Focus Areas: Technology, software, digital health.
  • Notable Investments: Klarna, Lilium, Pipedrive.
• Kinnevik AB
  • Details: Kinnevik AB is a Swedish investment company focused on building digital consumer businesses. It has a long history of investing in transformative companies that drive innovation and improve people's lives.
  • Investment Focus Areas: E-commerce, financial services, healthcare, telecommunications.
  • Notable Investments: Zalando, Tele2, Babylon Health.
• Octopus Ventures
  • Details: Octopus Ventures is a venture capital firm that invests in early-stage companies. The firm is known for its hands-on approach and extensive network, which helps startups grow and succeed.
  • Investment Focus Areas: Health, fintech, deep tech, consumer.
  • Notable Investments: Depop, Cazoo, Secret Escapes.
• Y Combinator
  • Details: Y Combinator is a startup accelerator that provides seed funding and mentorship to early-stage startups. It has a strong track record of nurturing successful companies from their inception.
  • Investment Focus Areas: Technology startups across various sectors.
  • Notable Investments: Airbnb, Dropbox, Stripe.
• Eight Roads
  • Details: Eight Roads is a global venture capital firm backed by Fidelity. The firm invests in high-growth companies and provides strategic support to help them scale.
  • Investment Focus Areas: Technology, healthcare, consumer.
  • Notable Investments: Alibaba, Made.com, Neo4j.

What's Next for Pelago?

Pelago stands at the cusp of significant growth opportunities, driven by its recent $58 million Series C funding. The company plans to expand its product offerings, enhance its clinical research, and integrate more deeply with health plans and wellness platforms. This expansion is poised to meet the increasing demand for digital health solutions, particularly in substance use management.

Future fundraising opportunities appear promising as Pelago continues to demonstrate substantial growth and market impact. The company has already seen a tenfold increase in revenue and eligible lives since its Series B round, indicating strong investor confidence and market demand. This momentum could attract further investment to support its ambitious expansion plans.

However, Pelago may face challenges such as competition from other digital health platforms, regulatory hurdles, and the need to maintain high levels of care and user satisfaction. Navigating these challenges will be crucial for sustaining its growth and achieving its long-term vision of providing accessible, stigma-free substance use support.

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