Virtual reality (VR) behavioral therapy platform Floreo closed a $10 million Series A funding round led by Tenfore Holdings with participation from Autism Impact Fund, Disability Opportunity Fund and Felton Group. 

The funding comes on the heels of a Category III Current Procedural Terminology Code (CPT) from the American Medical Association for the use of VR technology to assist with therapy. CPT III codes are temporary codes used to report emerging technologies, procedures and services.

The CPT III code (0770T) will go into effect in January 2023, allowing qualified healthcare professionals to report their use of VR as part of therapy as a practice expense. 

Additionally, Floreo and national managed care organization CareSource entered into a pilot program with the Arkansas Support Network to further explore the benefits of using VR for individuals receiving home and community-based services. 

WHAT THEY DO

Floreo's VR platform teaches individuals with autism, ADHD, anxiety and other conditions independent living skills as well as communication, social and emotional regulation. 

"Floreo's vision is a world that is open and accessible for every neurodiverse person, and this new funding round led by Tenfore Holdings will enable us to further scale our platform to reach more individuals and families who can benefit from our technology," Vijay Ravindran, Floreo's founder and CEO, said in a statement. "In addition, the CPT code from the American Medical Association, together with our pilot with CareSource, a major national health plan, are evidence of the viable reimbursement pathways of our virtual reality system for a wide range of learners." 

MARKET SNAPSHOT

Virtual reality use in the healthcare sector extends beyond autism, including treating patients with phobias and helping therapists conduct rehabilitation for stroke patients.

New Zealand-based cognitive behavioral therapy VR platform oVRcome provides an app-based platform to treat 12 phobias, including fear of flying, heights, dogs, needles and spiders.

Medical device company Penumbra made its way into VR in 2019 by developing the REAL System, designed to help clinicians address patients' individual needs in a rehabilitation setting.

In 2021, Penumbra expanded its VR offerings with the REAL i-Series, bringing immersive, gaze-based experiences to care providers and mental health professionals. Earlier this year, it released its y-Series, focusing on physical and cognitive rehabilitation.