These innovative digital health startups are addressing the pediatric mental health crisis

The mental health crisis among children and adolescents in the United States has reached alarming rates. An estimated 20 million (or 1 in 5) children in the US struggle with mental health disorders*. However, the CDC estimates that only about 20% of children with mental, emotional, or behavioral disorders receive care from a specialized mental health care provider. There are a variety of socio-economic challenges to receiving traditional in-person care ranging from distance to a qualified provider, adequate insurance coverage, stigma related to mental health disorders, and language barriers. The combination of disease burden and access hurdles speaks to the urgent need for more accessible and efficient pediatric mental health solutions.  

The good news is that digital health can play an effective role in mitigating the pediatric mental health crisis. Gen Z and Gen Alpha are digital natives and expect healthcare to be accessible on their devices. They are an open-minded audience for tech-enabled solutions. Entrepreneurs and investors have recognized the opportunity to improve mental health for kids and teens, resulting in the formation of many innovative digital health companies. Rock Health reported that these companies have raised over $3 billion between 2021-2023 from venture capital firms.  

Digital health tools for children and adolescents need to be engaging and easily accessible in order to be effective. Many pediatric mental health companies offer traditional telehealth services while others have developed play-based interventions, AI chatbots, virtual reality games, and emotionally responsive robots. The commitment to creative and evidence-based interventions makes pediatric mental health an inspiring digital health vertical.  

In addition to the wide variety of care delivery mechanisms, companies are experimenting with business models to optimize access. The National Association of School Psychologists recommends one psychologist per 500 children, but the national average is closer to one per 1,127 with great variability based upon geographic location. Companies like Alongside and Daybreak Health distribute their products and services directly into schools, reaching children where they spend the majority of their time during the week. Other companies like Bend Health have brokered a wide variety of health insurance partnerships to keep costs low for families. BetterHelp offers financial aid to those who qualify.  

Take a look at some of the most innovative pediatric mental health companies:

CHATBOT: 

Alongside: Alongside offers an AI Chatbot, developed in collaboration between student advisors and professionals, and provides a space for kids to independently explore mental health challenges. The app can also connect users with a school counselor should a situation escalate. Alongside also includes features like a personal journal, mood tracker, and educational mental health videos.  

Funding: Alongside has raised $5.5 million (Seed, 2022) 

MEDITATION FOR KIDS:  

Headspace: Headspace, one of the original mental health companies, offers meditation programs for kids starting at age 3.  

Funding: Headspace has raised $321 million.  

PLAY-BASED TREATMENT:   

Mightier: With Mightier, children wear a bluetooth heart rate sensor while playing games on a tablet. The in-game emotion meter, the Gizmo, helps children visualize their heart rate when they become overexcited, frustrated, or stressed while playing and walks them through emotional regulation tactics.  

Funding: Mightier has raised $17 Million (Series B, 2021) 

TELEHEALTH: 

Equip: Equip treats children and adults with eating disorders ranging from anorexia to avoidant restrictive food intake.  

Funding: Equip has raised $58 million (Series B, 2022) 

Little Otter: Little Otter provides online mental health care for kids 0-14 and their families. 

Funding: Little Otter has raised $22 million (Series A, 2022) 

Ladder Health: Developed at Boston Children’s Hospital and currently only available in Massachusetts, Ladder Health provides virtual care for developmental delays and conditions with occupational therapists, physical therapists, as well as speech and language pathologists. 

Funding: Not public. 

VIRTUAL REALITY: 

Floreo: Floreo is an FDA breakthrough Virtual Reality device and educational program for neurodiverse learners of any age and ability to practice communication and social skills.  

Funding: Floreo has raised $10 million (Series A, 2022) 

WILDCARD:  

Moxie Robot by Embodied: Moxie is a robot for kids and can engage in a wide variety of activities with kids, from emotional coaching to reading practice. Moxie is cute and sized to fit on a desk or a table and its face makes appropriate facial expressions in response to conversations. 

Funding: Moxie has raised $19 million (Series unknown) 

*The term Mental health disorders is inclusive of mental and emotional disorders (ex: anxiety and depression), behavioral disorders (ex: ADHD), or developmental disorders (Autism spectrum disorder.) 

Katie D. McMillan, MPH is the CEO of Well Made Health, LLC, a business strategy consulting firm for health technology companies. She is also a curious researcher and writer focusing on digital health evidence, healthcare innovation, and women’s health. Katie can be reached at katie@wellmadehealth.com or LinkedIn.