Autism Provider AnswersNow Raises $11M, Looks to Expand State Footprint

Digital autism provider AnswersNow has closed its $11 million Series A funding round.

The applied behavior analysis (ABA) provider plans to use the new funds to expand its services into more states and grow its team of PhD and master’s-level clinicians. It will also use the capital to improve its user experience on its virtual platform.

This funding comes when autism rates are rising, and demand for services is hot. About 1 in 44 children are diagnosed with autism spectrum disorder (ASD), according to the CDC.

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This has caused a great demand for ABA services, a type of one-on-one therapy focused on improving specific behaviors that has become the gold standard for treating autism. However, there are only 58,345 board-certified behavioral health analysts (BCBAs).

“One of the most significant pain points for families of individuals with autism, ADHD and other developmental disabilities is access to quality care. AnswersNow is changing that with our approach and our virtual platform,” Jeff Beck, CEO and co-founder of AnswersNow, said in a statement. “This latest round of funding enables us to impact the lives of more families, many of whom have been sitting on waitlists for months, or who live in areas where there’s not even one board-certified clinician.”

The Richmond, Virginia-based startup launched in 2017. Its business model is focused on matching families with clinicians for virtual ABA therapy on its platform. AnswersNow is currently working with major payers, including Medicaid, UnitedHealthcare, Aetna, Cigna, Anthem and Blue Cross Blue Shield.

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Left Lane Capital led the Series A funding round with participation from American Family Institute for Social Impact, Blue Heron Capital, Difference Partners and former Kadiant CEO Lani Fritts.

Although the demand for autism services is growing, ABA providers had a rocky 2022.

Venture-backed digital autism provider Elemy announced its fourth round of layoffs in December. The reductions were part of the company’s plans to evolve from a tech-backed autism service provider to a near-pure-play software company.

But it’s not only digital autism companies that have faced headwinds in 2022. Last summer, several private equity-backed autism providers, including The Centers for Autism and Related Disorders (CARD) and 360 Behavioral Health, announced layoffs. In November, CARD closed down operations in 10 states.

Over the last few years, ABA providers prioritized quickly growing their footprint in an attempt to gain market share and leverage in payer rate negotiations. Throughout 2022, some companies had to cut back operations to match economic realities in local employment markets and limited reimbursement increases.

While many autism providers have had to cut back, there still appears to be some venture interest in the space.

For example, Soar Health, a provider of autism-related therapies, raised $16 million in equity funding late last year. Additionally, pediatric virtual behavioral health provider Brightline announced an additional $10 million in funding in July, bringing its total raise to just under $220 million.

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