hellohero Raises $7.7M Seed Round for Kids' Therapy Platform
A Growing Niche: Mental Health Support Specifically for Children
Within the expanding landscape of mental wellness – encompassing areas like text-based therapy, AI-powered chatbots, and guided meditation – a distinct trend is emerging. Several startups are concentrating their efforts on providing therapeutic services exclusively for children.
HelloHero Secures Seed Funding
HelloHero, a company specializing in teletherapy for individuals aged up to 21, with an average user age of 10, recently announced a $7.7 million seed funding round. This was supplemented by a $4.5 million line of credit from Silicon Valley Bank. Participation in this funding round included Silverton Partners, Correlation Ventures, Achieve Partners, and Service Provider Capital New England Fund.
From Enable My Child to HelloHero: A Rebranding and Data-Driven Focus
The funding follows a recent rebranding initiative for the company. HelloHero is now prioritizing a data-driven approach to teletherapy. The platform was initially established in 2018 under the name Enable My Child, founded by Syed Mohammed.
Mohammed’s personal experience with an undiagnosed learning disability – dyslexia – motivated him to create a teletherapy program accessible through schools or directly to families. He himself benefited from therapy later in life.
Impact and Reach to Date
To date, HelloHero has facilitated teletherapy sessions for 3,800 children. Approximately 1,800 of these children have received services during the current school year.
A Competitive Landscape
HelloHero is not alone in the teletherapy for children market. DotCom Therapy, founded in 2015 to deliver therapy within school districts, also secured $13 million in funding this year. While HelloHero shares similarities with other teletherapy providers – particularly in leveraging clinical expertise to reach schools lacking in-house resources – its core strategy is heavily reliant on technology.
Mohammed emphasizes the importance of technology in enhancing the therapeutic process and developing tools to connect schools, insurance providers, and families.
Building a Connected Healthcare System
“Our vision is to create a healthcare system that seamlessly integrates with payers, families, children, and therapists,” Mohammed explained to TechCrunch.
Data-Driven Treatment and Progress Tracking
Each child participating in HelloHero’s program begins with a personalized treatment plan developed by a qualified therapist. Following each therapy session, both therapists and parents are prompted to assess the child’s clinical progress.
This data is systematically collected by HelloHero’s platform and utilized to refine the treatment plan on a weekly basis. This iterative approach aims to improve outcomes and personalize care.
The Value of Outcomes-Linked Data
“We have fundamentally improved the way progress is monitored,” Mohammed asserts.
The systematic collection of session-level data, linking therapy to measurable clinical outcomes, has proven valuable for companies in this space. This data can be used to demonstrate efficacy and attract investment.
Lessons from ieso and the Power of Data Sets
On a larger scale, ieso, a U.K.-based text-therapy provider, secured a $53 million Series B round in November after collecting extensive data on therapeutic techniques and their corresponding clinical results. This data set led to published research and became a significant draw for investors.
HelloHero’s Future: Automated Tools and Real-Time Guidance
HelloHero is actively building its own outcomes-linked data set. The company intends to leverage this data to develop more automated therapeutic tools.
Mohammed envisions a data-informed tool that provides therapists with real-time guidance during sessions, offering suggestions based on previously successful (and unsuccessful) approaches.
Currently, advice is offered before or after sessions. However, the company aims to implement “on-screen intelligence” within the next year.
Robust Technology Infrastructure
Beyond on-screen intelligence, HelloHero has invested in its back-end infrastructure. The company has developed its own electronic medical record system and a payer platform that integrates with both private insurers and Medicaid.
“Our chief technology officer estimated the amount of code we’ve written is comparable to that of a regional bank,” Mohammed stated, highlighting the scale of their technological undertaking.
Two-Pronged Approach: Schools and Direct-to-Family Programs
HelloHero operates through two primary channels. The first involves direct collaborations with schools, with contracts currently in place with 500 school districts, and over 100 actively providing therapy.
The second is a direct-to-family program offering specialized courses for children and parents, addressing issues like screen time management and feeding difficulties. This direct-to-family segment currently accounts for approximately 8-10% of the business, but the company plans to expand its investment in this area.
Future Investment Areas
The newly acquired funding will be allocated to recruiting expertise in three key areas: insurance integration, child psychology, and technology.