Backpack Raises $14 Million in Series A Funding to Provide Virtual Mental Health Care for Children
Backpack, an AI-powered company that provides virtual mental health care to children, has secured $14 million in Series A funding, signaling a significant step forward in addressing the pediatric mental health crisis in the United States. CEO Hafeezah Muhammad expressed the company’s commitment to breaking down barriers and ensuring all children have access to mental health support, regardless of their socioeconomic status.
The funding round was led by Pace Healthcare Capital and included prominent investors such as Techstars, Collab Capital, and Jeff Bezos’s chief equity officer, Robert Johnson. Julia Monfrini Peev, Managing Partner at Pace Healthcare Capital, emphasized the importance of investing in pediatric mental health to nurture brighter futures for underserved children.
Backpack Healthcare’s innovative approach includes an AI-powered app and teletherapy services, aimed at providing accessible and culturally competent mental health services to children. The company strategically partners with insurance providers that accept Medicaid, bridging the gap between the limited number of Medicaid-accepting providers and those in need.
Utilizing generative AI software, Backpack aims to save therapists time and reduce burnout by streamlining treatment planning processes. The company’s ability to blend AI and healthcare has garnered recognition from the federal government, leading to its inclusion in the U.S. AI Safety Institute Consortium alongside tech giants like Google and Meta.
The investment in Backpack is not only a significant milestone for the company but also a notable achievement for Maryland, as it marks one of the largest venture capital rounds raised by a Black founder in the state. The additional capital will support Backpack in expanding its mobile application and launching in new states on the Midwest and East Coast, furthering its mission to provide essential mental health care to children nationwide.