AnswersNow, a startup that provides autism treatment to families, announced Wednesday it has raised $40 million in Series B funding.
The Richmond, Virginia-based company works with commercial insurance companies and Medicaid programs to connect families with board-certified behavior analysts for one-on-one virtual therapy sessions.
It uses applied behavior analysis, a common therapy for autism that involves systematically teaching skills and reducing challenging behavior by observing behavior, understanding how environmental factors influence behavior, and using positive reinforcement to encourage meaningful change. Its artificial intelligence platform creates personalized learning modules based on each child’s needs. Additionally, AnswersNow provides training for caregivers.
“We believe parents and/or caregivers have an important role to play in treatment,” said Jeff Baker, the company's CEO. “Our training courses empower caregivers to be effective therapeutic agents in their daily lives outside of formal therapy, increasing the impact of each clinical hour.”
AnswersNow's Series B funding round was led by HealthQuest Capital, with participation from Left Lane Capital and Owl Ventures. The company has raised a total of $66 million.
“The autism support system in the United States is broken, leaving families waiting months or longer for services at a cost that is prohibitive for insurance companies,” Sam Brasch, partner at HealthQuest Capital, said in a statement. “AnswersNow's virtual treatment model is designed to deliver results in less time and at a lower cost than traditional treatment. We are excited to work with them to help families and create a more sustainable model for our health care system.”
With the funding, AnswersNow will expand its platform by doubling its clinical staff, expanding its leadership team and launching new service offerings. Additionally, it will invest in advancing its artificial intelligence platform.
Approximately one in 31 children is diagnosed with autism. Baker said the ultimate goal of AnswersNow is to address two things: the lack of access to quality autism treatment and the high cost of care.
“Early in my career as a licensed social worker, I was in the field every day working with children with autism — often in the most disadvantaged communities,” he said. “Day after day, I see some incredible families who are not only ill-equipped to deal with this problem on their own, but unable to get the care they need. Since then, the problem has only gotten worse. Autism is the fastest-growing developmental disability in the United States today. … Traditional support services simply cannot keep up.”
He added that most autism treatment in the United States is delivered in-person with less trained staff, requiring families to commit 30 to 40 hours a week, endure long wait times and travel long distances. Private equity mergers and insurance company reimbursement rates have further contributed to making care more difficult to access.
“The result is an autism crisis where high-quality care becomes unachievable and financially unsustainable,” Baker said. “AnswersNow's mission is to reverse this care dynamic and make the world as accessible as possible for children with autism.”
Other startups serving people with autism include Cognoa, Positive Development and Frontera Health.
Photo: Topp_Yimgrimm, Getty Images
