NOCD, a Chicago-based telehealth startup that specializes in the treatment of obsessive compulsive disorder (OCD), announced this week it closed on a $12 million Series A round led by Health Enterprise Partners.
OCD, a mental disorder that results in obsessive and intrusive thoughts and tics, is among the top 20 causes of illness-related disability worldwide, according to the World Health Organization. It affects about one in 40 adults in the United States, including NOCD founder and CEO Stephen Smith.
The platform is meant to be a resource to people with OCD, providing cognitive behavioral therapy techniques to help treat its users. The app allows users to have virtual visits with therapists who specialize in OCD right on their smartphone. Between sessions there are exercises patients can do to reinforce what they’re learning in therapy. It also provides a space where people with OCD can connect with each other and chat.
Like other healthtech startups, NOCD claims to have seen a surge in use amid the pandemic. Similarly, major telemedicine providers like Teladoc and Amwell are raising millions and snapping up teletherapy companies as mental-health management goes virtual. Mental-health benefits provider Lyra Health hit a billion-dollar valuation in August.
“OCD is not just about excessive hand washing or flipping light switches. It’s a severe, yet often overlooked mental-health issue that debilitates the lives of millions of people in the U.S., and the pressures and uncertainties of COVID-19 certainly haven’t helped,” Smith said in a statement. “Today is an exciting step in the maturation of our company for our many collaborators, investors and health plans, but most importantly the people we are humbled to provide respite to everyday.”
This latest round brings NOCD’s total funding raised to $17 million, according to Crunchbase data. The company plans to use the fresh cash to expand its services to all 50 states.
“The months ahead for the NOCD team look bright,” Smith said. “We can’t wait to continue our growth, expand our technology capabilities and play a critical role in transforming many lives.”
