Backpack Healthcare (formerly Youme Healthcare), an online pediatric mental healthcare provider, announced that it raised a $14 million Series A funding round led by PACE Healthcare Capital with participation from ECMC, Techstars, Collab Capital, Bridge Builders Collaborative, Portland Seed Fund, Hopelab, Rethink Education, Genius Guild, and Unlikely Collaborators and notable angel investors such as Maya Ghosn Bichara and Jeffrey Walker.
Founded by CEO Hafeezah Muhammad, Backpack Healthcare utilizes AI to transform pediatric mental health care and address the escalating youth mental health crisis, with a particular focus on Medicaid-enrolled youth.
Over 40 million children in the U.S. depend on Medicaid or CHIP for health plans. However, only 14% of mental health clinicians accept Medicaid as insurance, emphasizing the urgent need for accessible solutions. To address this issue, Backpack Healthcare is developing inclusive solutions with its AI-powered app and teletherapy services to support all young individuals navigating mental health challenges. The company also strategically works with insurance providers that accept Medicaid, bridging the gap between the limited number of Medicaid-accepting providers and those in need.
Backpack Healthcare’s AI-powered app utilizes advanced algorithms to monitor user emotions and match them with specialized therapists for tailored treatment plans. The app offers an engaging experience through interactive tools and activities that make therapy enjoyable and encourage active participation. Plus, Backpack Healthcare provides individual pediatric and family therapy and medication management through telemedicine and also provides live parent training sessions on topics such as cyberbullying and substance abuse.
The funding raised in this round will enhance Backpack Healthcare’s technology platform, expand its reach to more communities, and further develop its teletherapy services. With operations in Maryland and Virginia, and plans to expand to more states, Backpack Healthcare is committed to making its innovative solutions accessible to a wider audience. Plus, the company aims to continue its research and development efforts to ensure that its solutions remain at the cutting edge of AI innovation while forging partnerships with healthcare companies, government agencies, and schools to deliver high-quality care to those in need.
Along with this funding round, Robert Johnson, ESQ, Chief Equity Officer at Bezos Academy, is joining Backpack Healthcare’s Board of advisors, bringing a wealth of experience as the former Chief Economic Inclusion Officer and General Counsel for YWCA Metropolitan Chicago, alongside corporate experience at McDonald’s Corporation. His leadership will be instrumental in guiding Backpack Healthcare’s initiatives towards greater inclusivity and equity.
KEY QUOTES:
“The funding we have raised underscores the U.S. healthcare system’s need for more inclusive, tech-enabled solutions to tackle the growing pediatric mental health crisis. This milestone will help us deliver on our commitment to breaking down barriers and ensuring equitable access to mental health support for all children, regardless of their socioeconomic status.”
- Hafeezah Muhammad, Founder & CEO of Backpack Healthcare
“Investing in pediatric mental health is a truly unique opportunity: it is not just about driving returns, it is about nurturing brighter futures for millions of underserved children and investing in the resilience of our society tomorrow. We could not be more thrilled to lead Backpack Healthcare’s Series A. We have so much conviction in Hafeezah Muhammad as a CEO; and no team is better suited to deliver quality, accessible, culturally competent mental health services for children like Backpack Healthcare.”
- Julia Monfrini Peev, Managing Partner, PACE Healthcare Capital
