Virtual visit company Teladoc raises $50 million

By Aditi Pai
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teladocacquisitonDallas, Texas-based virtual visits company Teladoc raised $50 million, according to an SEC filing. The round was led by Jafco Ventures with additional funding from FLAG Capital Management, Greenspring Associates, Mellon, and QuestMark Partners. This brings the company's total funding to about $96.6 million.

Existing investors who also contributed to this round include Kleiner Perkins Caufield & Byers (KPCB), Cardinal Partners, HLM Venture Partners, Trident Capital, and New Capital Partners.

In the filing, Teladoc disclosed that its revenues range between $25 million and $100 million. This indicates at least a small increase in revenue from the company's 2013 total, $20.5 million, which was published in a recent Inc Magazine list of the 5,000 fastest growing private companies. Teladoc also told Inc that they had added 35 jobs since 2010 and that the company now employs 80 people. 

Teladoc offers patients an alternative to a standard doctor's visit. When a patient needs a doctor but doesn’t want to make an appointment, he or she can call Teladoc to schedule a virtual visit. The visit includes a one-on-one consultation with a doctor over phone or via video chat. The doctor can (sometimes) access a patient’s EHR and send prescriptions for most medications to the patient’s pharmacy of choice -- if allowed by the patient's state's laws.

“Teladoc has experienced phenomenal growth. After doubling revenue in each of the last two years, we look to accelerate this trend,” Teladoc CEO Jason Gorevic said in a statement. “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. Our goal is to extend our significant lead in the industry such that Teladoc is the de facto brand in telehealth.”

Some of the company's customers include Blue Shield of California, Cash America, Gallup, Highmark, Ignite Restaurants, Rent-A-Center, and T-Mobile. The company aims to set record growth in January 2015 "on the heels of its strongest selling season ever", it said in a release.

Earlier this summer, Teladoc partnered with price transparency company Castlight. The deal made it easier for employees whose companies are customers of both companies by integrating Teladoc’s virtual visits services into Castlight’s platform. The Teladoc deal was part of the Castlight Connect program, which includes more than 30 integrations with telehealth companies, on-site clinic providers, expert opinion services, and wellness offerings.

Last year, Teladoc acquired Miami Beach, Florida-based Consult A Doctor. At the time the company said the acquisition would allow small- and medium-sized companies access to Teladoc’s patient-physician consult services.

This article, originally based on an SEC filing, has since been updated with information from the company.