Backpack Healthcare, a provider of online pediatric mental healthcare, has closed $14 million in Series A funding. The round was led by PACE Healthcare Capital and saw participation from ECMC, Techstars, and Collab Capital, among others.
The escalating youth mental health crisis in the United States has underscored the critical need for accessible mental health solutions. With over 40 million children relying on Medicaid or CHIP for healthcare coverage, but only 14% of mental health clinicians accepting Medicaid, there is an urgent demand for inclusive and innovative approaches to address this disparity. Backpack Healthcare aims to bridge this gap by leveraging AI technology to provide essential support to children and adolescents facing mental health challenges.
“Access to mental health support should be a fundamental right for all children, regardless of their socioeconomic status,” said Hafeezah Muhammad, Founder & CEO of Backpack Healthcare. “This funding marks a significant milestone in our journey to break down barriers and ensure equitable access to mental health care for every child in need.”
Backpack Healthcare’s AI-powered app utilizes advanced algorithms to monitor user emotions and match them with specialized therapists for personalized treatment plans. The app offers an interactive and engaging experience, making therapy enjoyable and encouraging active participation. Additionally, Backpack Healthcare provides individual pediatric and family therapy, medication management through telemedicine, and live parent training sessions on various topics such as cyberbullying and substance abuse.
The capital raised in this funding round will be allocated towards enhancing Backpack Healthcare’s technology platform, expanding its reach to more communities, and further developing its teletherapy services. Currently operational in Maryland and Virginia, Backpack Healthcare has plans for expansion into additional states, with a commitment to making its innovative solutions accessible to a broader audience.
“We are committed to nurturing brighter futures for millions of underserved children,” remarked Julia Monfrini Peev, Managing Partner at PACE Healthcare Capital. “Backpack Healthcare’s innovative approach and leadership team position it as a frontrunner in delivering quality, accessible, and culturally competent mental health services for children.”
