Virtual opioid addiction treatment startup raises $5 million

Bicycle Health, a Boston-based startup that offers virtual treatment for opioid addiction, raised $5 million in new venture capital funding.

Why it matters: Telehealth can reduce the stigma that precludes many people with addiction from seeking care, in addition to its lower costs and higher convenience.

Details: Cobalt Ventures provided the investment, which is an extension to a Series B round that previously closed on $50 million.

• The Series B round's initial tranche, which Axios Pro scooped in June, was led by InterAlpen Partners. Other backers included Questa Capital, Frist Cressey Ventures and City Light Capital.

The bottom line: There is some skepticism that virtual opioid addiction treatment is as effective (or safe) as in-person care, but there is consensus that more treatment options are needed as addiction rates continue to rampage.