| The moolah
Pediatric mental health startup Handspring picked up $19 million in Series B funding this week. The round was led by RPS Ventures, with participation from other funds including Angelini Ventures, Cobalt Ventures, NextView Ventures, nvp capital, Hyde Park Angels and Cornucopian Capital. Handspring has now raised a total of $37 million since its founding in 2022. The model
Handspring delivers evidence-based mental health care that families typically find through their pediatrician, school counselor or health plan. The startup has a payer footprint in nine states: California, Connecticut, Florida, Georgia, New Jersey, New York, North Carolina, Pennsylvania and Washington. One aspect that helps Handspring stand out from other pediatric mental health care providers is that it treats the full spectrum of acuity, Handspring CEO Sahil Choudhry said. “Most behavioral health jumps straight from low acuity weekly one-hour therapy to the emergency room or an intensive outpatient program which often includes 12+ hours a week for 12+ weeks, and is group-based and expensive. There's almost nothing in between for a child whose depression or anxiety escalates to something like self-harm but who doesn't need inpatient or emergency care,” he explained. He believes Handspring’s Complex Care program fills that "missing middle.” Under the program, patients receive roughly 3-6 hours of outpatient care per week combining cognitive behavioral therapy, dialectical behavior therapy, parent coaching and medication management. Plans for growth
As it continues to grow, the startup plans to establish more partnerships with payers. Choudhry thinks Handspring's model will be attractive to insurers because it aligns cost with clinical need. “First, our whole model is built to give youth real skills so they can graduate from care rather than stay in therapy indefinitely. Care that ends when a child is better is good for families and for payers. Second, because we treat the full range of acuity, we match each child to the right level of care instead of defaulting to the most intensive, most expensive option – and Complex Care in particular keeps youth out of costly ER visits and IOPs they don't actually need,” he remarked. — By Katie Adams |
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