Healthtech startup Kantoko has successfully secured $3.5 million in a seed funding round to enhance its ADHD assessment and treatment platform. The investment was led by Side Stage Ventures and Andrew Forrest’s Tenmile, with participation from Go1 founders Vu Tran and Andrew Barnes. Founded by serial entrepreneur Zac Altman, Kantoko aims to streamline the complex process of receiving ADHD care, making it more accessible and affordable for Australians.
A Founder's Mission to Simplify Care
Zac Altman’s motivation for creating Kantoko stems from his own challenging experiences with the Australian healthcare system. After being diagnosed with ADHD in the United States, he faced significant hurdles when trying to continue his treatment upon returning to Australia. This frustrating process highlighted major inefficiencies and inspired him to develop a more streamlined solution for others facing similar obstacles.
Altman, who previously sold his startup LoungeBuddy to American Express, questioned the high costs and lengthy delays associated with ADHD care in the country. Even from a position of privilege, he found the system to be broken, prompting him to leverage his entrepreneurial background. His personal journey became the catalyst for building a platform designed to address these systemic flaws directly.
Addressing a Surge in Demand
Kantoko enters the market at a critical time, as demand for ADHD services in Australia has seen a dramatic increase. According to data from UNSW, the number of Australians filling prescriptions for ADHD medication has surged by over 600 percent since 2017. This rapid growth has placed immense strain on existing healthcare infrastructure, leading to prolonged wait times for diagnosis and treatment.
The company specifically aims to reduce barriers for individuals in rural and remote areas, who often wait a year or more for specialist appointments. By offering a telehealth-based model, Kantoko provides a more immediate and convenient alternative to traditional care pathways. This approach is crucial for improving equity and access for underserved populations across the nation.
An Innovative Model Backed by Investors
The startup operates on a subscription basis, charging patients $100 per month for access to its team of clinicians via telehealth appointments. Altman founded the company in 2023, initially bootstrapping the venture with support from his LoungeBuddy co-founder, Tyler Dikman. Since its inception, Kantoko has built its platform, hired engineers, and established a dedicated clinical team to serve thousands of patients.
Investor confidence in this model is strong, with Tenmile managing director Steve Burnell highlighting the platform's potential. He noted that hundreds of thousands of adults wait years for a diagnosis, which comes at a significant personal and economic cost. Burnell expressed pride in backing Kantoko’s innovative approach, which directly addresses the greatest barriers within the ADHD care space.
Fuelling Growth and Future Development
The newly acquired $3.5 million in seed funding will be instrumental in scaling Kantoko's operations and enhancing its service offerings. The capital is earmarked for expanding the company's roster of clinicians to meet growing patient demand. Additionally, the funds will support the continued development of its software to create a more connected and seamless user experience.
This venture marks Altman's third entrepreneurial endeavor, following the successful sales of Taxi Pro and LoungeBuddy. Despite a brief period considering a role as an advisor, his passion for building solutions to complex challenges drew him back to founding a company. He describes Kantoko as the most exciting project he has worked on, driven by the opportunity to tackle a significant problem in healthcare.
With this significant seed investment, Kantoko is well-positioned to advance its mission of transforming ADHD care in Australia. The funding will enable the company to reach more individuals, refine its platform, and build a comprehensive support system for long-term patient needs. As the demand for mental health services continues to grow, Kantoko's accessible and technology-driven approach marks a promising development in the healthtech sector.
Source: Forbes