Backpack Healthcare, formerly known as Youme Healthcare, has secured an investment of $14m in its Series A funding round for transforming paediatric mental healthcare.
The investment round was led by PACE Healthcare Capital and saw participation from several investors, including Bridge Builders Collaborative, Techstars, Genius Guild, ECMC, Collab Capital, Hopelab, Rethink Education, Unlikely Collaborators, and Portland Seed Fund.
Other notable angel investors were Maya Ghosn Bichara and Jeffrey Walker.
Backpack Healthcare, led by founder and CEO Hafeezah Muhammad, uses AI to enhance paediatric mental health care.
The company's AI-powered app is designed to monitor user emotions and match them with specialised therapists for customised treatment plans.
The app aims to make therapy engaging through interactive tools and activities, fostering active participation from young users.
Apart from the app, Backpack Healthcare also offers teletherapy services to help individual paediatric and families with enhanced accessibility to therapy, medication management through telemedicine as well as live parent training sessions on a range of topics, such as substance abuse.
Backpack will leverage the latest investment to further enhance its AI-powered app and teletherapy services, addressing the critical need for accessible mental health care for Medicaid-enrolled youth.
The new capital will also support the expansion of Backpack Healthcare's technology platform and services to more communities.
Currently operating in Maryland and Virginia, Backpack Healthcare has plans to extend its services to additional states.
The company is also focused on continuing its research and development work related to AI innovation in healthcare.
Following this funding round, Bezos Academy chief equity officer Robert Johnson will join Backpack Healthcare's board of advisors.
Muhammad said: “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.
“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.”
