Vitalk has pioneered a “hybrid” approach that uses AI and automation to drastically lower the cost of traditional therapy by up to 5X. Our solution is just as effective for generalized anxiety, depression, stress and sleep disorders as traditional therapy, however it overcomes the barriers of cost and stigma. We currently sell our service as a B2B SaaS to employers and insurance companies in Brazil, though we are starting to get clients in other LatAm countries. Our goal is to be Latin America’s leading behavioral health player.
Current Status
40 person company, $1M revenue in 2020 — 70% above 2019, 17% month over month MRR growth, scientific study published, large multinational clients, nearly 3 million people impacted
Market
Mainly employers with 500+ employees now, though we are testing smaller clients too. Also, insurance companies reimburse our services and we are working to enter their networks. Eventually, we want our service as part of the public health system.
Problem or Opportunity
Mental health is a major unmet need in Brazil, and has been aggravated by COVID. Brazil is the most anxious country in the world. 20% of the population doesn’t have access to treatment due to cost. We’ve come up with a way to make therapy cheaper and therefore more accessible. Currently we sell a B2B SaaS model to enterprise (PMPM) who are trying to solve this problem but do not have large budget or know-how. We get reimbursed by insurance, which seeks cheaper therapy option. We have 20 clients, total of 150 thousand employees, and closed our first clients outside Brazil.
Solution (product or service)
We actually sell an end-to-end enterprise solution, ranging from: i) employee education, ii) mental health mapping, iii) text and video “hybrid therapy”, and iv) telemedicine for special situations such as maternal health, chronic diseases and more complex psychiatric conditions.
Competitors
Traditional therapy, teletherapy platforms, employee assistance programs, individual consultants or psychology clinics.
Advantages or differentiators
We are 3X cheaper than traditional therapy. We also offer an end-to-end solution to employers, which our competitors do not offer. Finally, as we get more users, our digital therapeutic becomes more effective and efficient over time, therefore making it cheaper and cheaper.
Finance
Our typical ticket is about R$2-5 ($0.5-$1 USD), per member per month; we charge for every employee in the company. Then we try to demonstrate high usage rates and cost savings due to productivity gains. We sell out therapy individually to insurance companies at R$17/session ($3 usd), which is at least a third of market rate.
Business model
We do inbound sales now, closed about 20 clients since launch in Jan/2020. Our MRR/employee has grown from R$1 to R$3, and we have the equivalent of 100K monetized employees. Our goal is to keep growing number of employer customers, growing average MRR by driving higher usage and perceived value, and expansion internationally (App is being translated to Spanish and English).
For our low-cost therapy solution l, our main metrics are time spent by therapist, time spent by patient, and retention rate.
Money will be spent on
Growth of Client base and MRR, improvement in personalization algorithms, setting us up for a larger series B we want to raise in 2022
