Total amount raised
$151.6 Millions
Latest funding date
03/01/2024
Location
Pelago has successfully raised funds through multiple rounds, with the latest being a Series C round. The company is backed by 30 investors, including notable names like Kinnevik and Octopus Ventures.
Keep reading to explore the intricacies of Pelago's fundraising journey and the investors supporting this innovative virtual clinic for substance use management.
What Is Pelago?
Pelago, founded in April 2017, is a virtual clinic based in New York, New York, specializing in substance use care. The company was established by Maroof Ahmed, Sarim Siddiqui, and Yusuf Sherwani.
Pelago offers comprehensive virtual care for managing substance use, including tobacco, alcohol, opioids, and cannabis. Their approach integrates cognitive behavioral therapy (CBT) and medication-assisted treatment (MAT) to provide effective and accessible care.
With a team of 101-250 employees, Pelago aims to deliver personalized, stigma-free, and cost-effective substance use management solutions. Their services are designed to seamlessly integrate with health plans, pharmacy benefit managers, and wellness platforms.
How Much Funding Has Pelago Raised?
- Seed Round
- Amount Raised: $2.6M
- Date: May 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the initial operations and develop the core technology for their virtual clinic.
- Series A
- Amount Raised: $12M
- 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, broadening the scope of their services beyond tobacco addiction.
- Series B
- Amount Raised: $64M
- Date: July 2021
- Lead Investors: Atomico, Kinnevik
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Raised during the COVID pandemic to presumably expand and adapt to the increased demand for telehealth services.
- Series B
- Amount Raised: $15M
- Date: July 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further scale their operations and enhance their service offerings.
- Series C
- Amount Raised: $58M
- Date: March 2024
- Lead Investors: Atomico
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate Pelago's product roadmap, extend its continuum of care, and advance clinical research efforts.
Total Amount Raised: $151M. Current Valuation: Not publicly disclosed.
Key Investors
- Atomico
- Details: Atomico is a European venture capital firm founded by Niklas Zennström, co-founder of Skype. They focus on investing in technology companies at the growth stage.
- Investment Focus Areas: Technology, software, hardware, internet services.
- Notable Investments: Klarna, Supercell, Lilium.
- Kinnevik AB
- Details: Kinnevik AB is a Swedish investment company that focuses on building digital consumer businesses. They have a strong presence in the European market.
- Investment Focus Areas: E-commerce, financial services, healthcare, telecommunications.
- Notable Investments: Zalando, Tele2, Babylon Health.
- Octopus Ventures
- Details: Octopus Ventures is a UK-based venture capital firm that invests in early-stage and growth-stage companies. They are known for their diverse portfolio.
- Investment Focus Areas: Health, fintech, deep tech, consumer.
- Notable Investments: Zoopla, Secret Escapes, Depop.
- Y Combinator
- Details: Y Combinator is a startup accelerator based in Silicon Valley, known for its rigorous selection process and strong support network for early-stage startups.
- Investment Focus Areas: Early-stage startups across various sectors.
- Notable Investments: Airbnb, Dropbox, Stripe.
- Eight Roads
- Details: Eight Roads is a global venture capital firm that invests in technology, healthcare, and consumer sectors. They have a significant presence in both the U.S. and Asia.
- Investment Focus Areas: Technology, healthcare, consumer.
- Notable Investments: Alibaba, Appsflyer, Neo4j.
What's Next for Pelago?
Pelago stands at the cusp of significant growth opportunities, driven by the increasing demand for virtual substance use management solutions. With the recent $58 million Series C funding, the company is poised to expand its product offerings, advance clinical research, and integrate more deeply with health plans and wellness platforms. The market potential is vast, as substance use disorders cost over $35 billion annually in employer-sponsored insurance, and Pelago has already helped over 750,000 members.
Future fundraising opportunities appear promising, given the strong investor confidence and substantial market need. Pelago's impressive growth metrics, including an 11x revenue surge, suggest that additional investment rounds could be on the horizon to support further expansion and technological advancements. However, challenges such as competition from other digital health platforms, regulatory hurdles, and the need to maintain high-quality care while scaling operations remain. Addressing these challenges will be crucial for Pelago as it continues to innovate and lead in the substance use management space.
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