Paediatric mental health platform raises US$14m in Series A funding

The US paediatric mental health platform Backpack Healthcare has secured US$14m in funding to support children and adolescents.

Backpack Healthcare is a tech company that aims to “revolutionise” paediatric mental healthcare and make a positive impact on the lives of children and adolescents struggling with mental health challenges.

The company offers an app and teletherapy services designed to provide accessible and inclusive mental health support for young individuals, with a particular focus on medicaid-enrolled youth.

Over 40 million children in the US rely on Medicaid or CHIP for healthcare coverage, yet only 14 per cent of mental health clinicians accept Medicaid as insurance.

Backpack Healthcare’s app uses AI to monitor user emotions to match them with specialised therapists.

The platform also provides individual paediatric and family therapy and medication management through telemedicine, and offers live parent training sessions on topics, such as cyberbullying and substance abuse.

The company works with insurance providers that accept Medicaid, bridging the gap between the limited number of Medicaid-accepting providers and those in need.

The funding round, led by PACE Healthcare Capital, is hoped to help Backpack Healthcare improve its platform, expand its reach and further develop its services.

“The funding we have raised underscores the US healthcare system’s need for more inclusive, tech-enabled solutions to tackle the growing paediatric mental health crisis,” said Hafeezah Muhammad, founder and 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.”

Julia Monfrini Peev, managing partner at PACE Healthcare Capital, said: “Investing in paediatric 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.”

She added: “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”.