Tech-enabled psychiatric care startup Talkiatry has wrapped up its $37 million Series A financing round.

The company announced it had raised $20 million in funding in July. Left Lane Capital, which also participated last year, contributed the additional $17 million.

Other investors in the mental health startup include CityMD founder Dr. Richard Park, Sikwoo Capital Partners and Relevance Ventures.

WHAT IT DOES

Patients interested in psychiatric care can complete an assessment, and an algorithm will match them to Talkiatry-employed mental healthcare providers. They can then book a virtual or in-person visit online. The company works with insurers so care can be offered in-network. 

WHAT IT'S FOR

At this time, Talkiatry only operates in New York – where it operates two offices – but it plans to expand. The startup said it will use the capital from its Series A to scale its services across the U.S. with more contracts with national payers.

"Talkiatry has been successful in demonstrating our value and commitment to our insurance partners who are rewarding our approach of high-quality and responsible healthcare with national insurance contracts that cover over 200 million lives," Cofounder and CEO Robert Krayn said in a statement. "Our team is focused on executing on the needs of our psychiatrists and insurance partners."

MARKET SNAPSHOT

Digital and virtual mental health offerings are a popular area for investment. A report by CB Insights found funding for mental health-and-wellness companies rose 139% year-over-year in 2021. Much of that funding was early-stage, leaving room for growth as the field expands. 

Other companies in the space include Lyra Health, an employer-focused digital mental health company that recently announced it had raised $235 million in a Series F round. In September, it revealed a suite of tools aimed at complex conditions like alcohol use disorder and suicidality.

Quartet Health also works to match patients to mental health providers based on their preferences, needs and insurance. It recently scored $60 million in funding and acquired virtual behavioral health provider InnovaTel Telepsychiatry.

Late last year, UpLift raised $8 million to add psychiatric care services to its offerings. The company allows for in-person or virtual appointments, and it's working to expand its geographic footprint this year.