Hopelab’s Investment in InStride Health

InStride raises $30 million in Series B funding to support increased access to specialty outpatient care for pediatric anxiety and OCD

Hopelab is excited to announce our investment in InStride Health’s $30 Million Series B financing round. InStride Health provides virtual outpatient care for moderate to severe pediatric anxiety and Obsessive Compulsive Disorder (OCD). With a model grounded in evidence-based treatments, including Cognitive Behavioral Therapy (CBT), Acceptance and Commitment Therapy(ACT), and Exposure and Response Prevention (ERP) for a mixed therapeutic style, InStride delivers real-time mental health treatment to pediatric populations (ages 7-22) via a dedicated care team of a psychiatrist, therapist, and exposure coach with support enhanced by the InStride mobile app.

The Series B funding supports continued investment in clinical quality and expansion to new markets while increasing access to outpatient care for youth seeking treatment for pediatric anxiety and OCD. General Catalyst led the funding round and was joined by previous investors, 406 Ventures, Valtruis, and Mass General Brigham Ventures.

The Market Need

The mental health technology sector is experiencing exponential growth. However, at present, most competitors in pediatric anxiety focus on high-functioning patients with low-to-moderate anxiety levels. While several companies address general behavioral health needs for teens and young adults, currently, there are few digital solutions tailored for moderate to severe anxiety and OCD.

With approximately one-third of adolescents in the United States facing anxiety disorders or OCD by age 18, the challenges for young individuals, families, and the healthcare system are profound. These conditions carry significant health implications and financial burdens, particularly for those with severe symptoms, exacerbated by a shortage of specialized care providers, waitlists over six months, and limited insurance coverage options.

Outcomes

InStride Health released its first outcomes report in October 2023, reporting clinically meaningful results of the coordinated care model. Ninety percent of InStride Health program graduates experienced a reduction in anxiety following two months of treatment, with an average symptom reduction of 46%. After three months, 82% of graduates reported reduced functional impairment and symptom severity.

Since Seed and Series A funding, InStride has expanded access beyond Massachusetts to patients living in New York, New Jersey, Connecticut, New Hampshire, Pennsylvania, and Rhode Island and is covered by most major insurance carriers in those states.

Mission Alignment

Hopelab invests in founders building scalable solutions that are intentionally inclusive of young people from underserved populations. InStride’s leadership team boasts a diverse clinical background, with representatives bringing deep expertise from McLean Hospital, the number one psychiatric hospital in the country.

Currently, fewer than 20% of mental health practices engage in Measurement Based Care (MBC), a practice where treatment goals and progress are measured to directly inform care. However, InStride Health is committed to transparency and employs MBC as an integral part of their outcomes strategy. This heavy emphasis on accountability and research-informed impact analysis is aligned with Hopelab’s goals of delivering evidence-based solutions that work.

InStride provides a solution that is accessible to underserved young people and their families, for whom traditional mental health care is expensive, hard to find, and rarely culturally responsive. InStride Health supports a community care model where parents, the school team, and pediatrician/primary care doctors are mobilized to help the child and family as they build skills that strengthen their ability to manage anxiety and/or OCD. Given the shortage of specialized providers, InStride offers timely assistance through its digital platform, at a lower cost than inpatient care, making it easier for rural and underserved populations to access care.

Hopelab first invested in InStride Health in 2022.