San Francisco-based Daybreak Health has raised $10 million in Series A funding to expand its school-based youth mental health services, a timely move as the country faces a growing crisis in adolescent mental health. The startup, which launched in early 2020, focuses on providing virtual therapy for youth ages 11 to 19, delivered through partnerships with schools and pediatric providers. This funding round, announced Tuesday, positions Daybreak to build on its momentum and reach more students at a time when support is urgently needed.
Building a Youth-Focused Mental Health System
CEO and Co-founder Alex Alvarado emphasized the company’s mission in a statement, saying the funds will be used to build out their team and deepen the model they’re creating. “We’re building the first mental health system designed specifically for youth,” he said. “We’re reinventing both the care programs and the access model.” These school-based youth mental health services are designed to remove the common barriers to care by meeting students where they are—digitally and through school systems they already trust.
Expanding Partnerships and Reach
Daybreak has already formed partnerships with 100 schools across California and works with pediatricians who refer families when a need is identified. The platform currently gives more than 200,000 students access to a suite of digital tools, including one-on-one therapy, emotional learning modules, and a universal mental health screener. The company’s emphasis on culturally competent care is reflected in its staff of more than 60 clinicians, many of whom identify as BIPOC or LGBTQ+ and can provide therapy in six different languages. This inclusive approach enhances the effectiveness of school-based youth mental health services by ensuring young people feel seen and understood.
Personalized Care and Family Involvement
What sets Daybreak apart is its personalized approach. After an initial free consultation, students are matched with a therapist based on their specific needs, communication style, and personal preferences. The goal is to foster strong, trusting relationships between students and counselors. Parents remain actively involved through monthly check-ins with therapists, keeping them informed and engaged. Daybreak’s platform is accessible via mobile and web applications, making these school-based youth mental health services easy to use for students at home or in school.
Making Mental Health Care Affordable
Affordability is another key component of Daybreak’s model. Over 60% of its users currently receive care at no out-of-pocket cost. The company is actively working to increase that number to over 90%, aiming to make school-based youth mental health services accessible to students regardless of their family’s income or insurance status. By integrating services directly into school environments, Daybreak eliminates many logistical and financial barriers that traditionally prevent youth from getting the help they need.
Strong Investor Support and Industry Trends
The Series A round was led by Lightspeed Venture Partners, with additional backing from Maven Ventures and individual investors including BetterUp’s Alexi Robichaux, Remind’s Brian Grey, and GSV’s Deborah Quazzo. This vote of confidence from prominent investors reflects the increasing recognition of the value and scalability of school-based youth mental health services. It also follows a trend of investor interest in the pediatric behavioral health space—Brightline, another startup in the sector, recently raised $72 million and expanded its offerings to include autism care.
Addressing an Urgent Need
The need for solutions like Daybreak’s is urgent. A 2018 report by the American Academy of Child and Adolescent Psychiatry found that only 20% of children with behavioral health needs were receiving care. Since the COVID-19 pandemic, that gap has only widened. Today, more than 30% of American parents report a decline in their children’s emotional well-being. School-based youth mental health services offer a proactive way to reverse this trend by providing early intervention in a familiar setting.
Looking Ahead
By positioning itself at the intersection of technology, education, and healthcare, Daybreak Health is reimagining what mental health support for adolescents can look like. The company’s model is not only scalable but also deeply personalized, making it a standout in the crowded mental health startup space. Alvarado summed it up best: “We’re excited to bring this new system for youth mental healthcare nationwide and continue to push the boundaries of how mental health support can be delivered and made accessible to youth of all backgrounds.”
With this fresh round of funding, Daybreak is set to expand its reach, further solidifying the importance of school-based youth mental health services in building a healthier, more emotionally resilient generation. As more schools and providers embrace these models, the potential for systemic change in how mental health care is delivered to young people becomes even more tangible.
