Backpack Healthcare, formerly known as Youme Healthcare, has raised $14 million in Series A funding to revolutionize pediatric mental health care.
The funding round was led by PACE Healthcare Capital and included participation from ECMC, Techstars, Collab Capital, Bridge Builders Collaborative, Portland Seed Fund, Hopelab, Rethink Education, Genius Guild, and Unlikely Collaborators, along with notable angel investors such as Maya Ghosn Bichara and Jeffrey Walker. The company, led by Founder & CEO Hafeezah Muhammad, aims to address the escalating youth mental health crisis, particularly focusing on Medicaid-enrolled youth in the U.S.
With over 40 million children relying on Medicaid or CHIP for healthcare coverage and only 14% of mental health clinicians accepting Medicaid, there is an urgent need for accessible solutions. Backpack Healthcare utilizes cutting-edge AI technology to develop inclusive solutions through its AI-powered app and teletherapy services. By strategically working with insurance providers that accept Medicaid, the company bridges the gap between the limited number of Medicaid-accepting providers and those in need.
The AI-powered app monitors user emotions using advanced algorithms to match them with specialized therapists for tailored treatment plans. It offers an engaging experience through interactive tools and activities, encouraging active participation in therapy. Additionally, Backpack Healthcare provides individual pediatric and family therapy, medication management through telemedicine, and live parent training sessions on topics such as cyberbullying and substance abuse.
With operations in Maryland and Virginia and plans for expansion to additional states, the company is committed to making its innovative solutions accessible to a wider audience. Moreover, Backpack Healthcare aims to continue its research and development efforts to remain at the cutting edge of AI innovation and forge partnerships with healthcare companies, government agencies, and schools.
Julia Monfrini Peev, Managing Partner at PACE Healthcare Capital, expressed confidence in Backpack Healthcare’s mission, emphasizing the importance of investing in pediatric mental health to nurture brighter futures for underserved children. Additionally, Robert Johnson, ESQ, Chief Equity Officer at Bezos Academy, will join Backpack Healthcare’s Board of Advisors, bringing valuable experience to guide the company’s initiatives towards greater inclusivity and equity.
