The funding positions the company to increase
access to and enhance its innovative app and teletherapy services
for children and adolescents struggling with mental health
challenges
ELKRIDGE, Md., May 7, 2024
/PRNewswire/ -- Backpack Healthcare (formerly Youme
Healthcare), an online pediatric mental healthcare provider,
announced today that it has 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, along with notable angel investors including
Maya Ghosn Bichara and Jeffrey Walker. The pioneering health technology
company, led by Founder & CEO Hafeezah
Muhammad, is utilizing cutting-edge 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. rely on Medicaid or CHIP
for healthcare coverage, yet only 14% of mental health clinicians
accept Medicaid as insurance, highlighting the urgent need for
accessible solutions. In response to this pressing issue, Backpack
Healthcare is developing innovative and inclusive solutions with
its AI-powered app and teletherapy services to provide
indispensable support to all young individuals navigating mental
health challenges. The company strategically works with insurance
providers that accept Medicaid, bridging the gap between the
limited number of Medicaid-accepting providers and those in
need.
"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," said Hafeezah Muhammad, Founder & CEO of Backpack
Healthcare. "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."
Backpack Healthcare's AI-powered app uses advanced
algorithms to monitor user emotions to match them with specialized
therapists for tailored treatment plans. The app provides an
engaging experience through interactive tools and activities that
make therapy enjoyable, encouraging active participation.
Additionally, 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 capital raised in this round will be used to enhance
Backpack Healthcare's technology platform, expand its reach to more
communities, and further develop its teletherapy services. With
current operations in Maryland and
Virginia, and plans for expansion
to additional states on the horizon, Backpack Healthcare is
committed to making its innovative solutions accessible to a wider
audience. Additionally, 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.
"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," said
Julia Monfrini Peev, Managing
Partner, PACE Healthcare Capital. "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".
In addition to 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.
About Backpack Healthcare
Backpack Healthcare is a pioneering technology company dedicated
to revolutionizing pediatric mental health care. Formerly known as
Youme Healthcare, the company offers an innovative app and
teletherapy services designed to provide accessible, inclusive, and
comprehensive mental health support for young individuals. Led by
Founder & CEO Hafeezah Muhammad,
Backpack Healthcare is committed to making a positive impact on the
lives of children and adolescents struggling with mental health
challenges. To learn more about Backpack Healthcare and its
innovative solutions for pediatric mental health care,
visit www.hellobackpack.com.
About PACE Healthcare Capital
Founded in 2020 and based in Chicago,
IL, PACE Healthcare Capital is an early-stage venture
capital firm focused on investing in companies that have developed
high-impact solutions to critical healthcare challenges. With
decades of combined experience and $1B+ of capital raised and
deployed in healthcare, PACE applies institutional-grade investment
processes to identify the best entrepreneurs and deploy financial
and human capital to help them grow their business. PACE is a 100%
women and/or diverse-owned investment firm.
Media Contact for Backpack Healthcare:
Sylvia Mugo
sylvia.mugo@hellobackpack.com
443-776-1203
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SOURCE Backpack Healthcare ( Formerly Youme Healthcare)