Handspring, a virtual mental health clinic focused on youth and families, has successfully closed a $19 million Series B funding round. Led by RPS Ventures with participation from new investor Angelini Ventures, the financing will fuel the company's nationwide expansion. This capital injection, bringing Handspring's total raised to $37 million, highlights growing confidence in its clinically rigorous and outcomes-driven model of care.
A New Model for Clinical Excellence
Handspring is challenging the industry standard by building its care model around clinicians, who are employed directly and deeply supported. Unlike platforms that rely on contractors, the company invests in comprehensive in-house training in evidence-based modalities like Cognitive Behavioral Therapy and Dialectical Behavior Therapy. This approach ensures a consistent standard of care and fosters professional growth, directly addressing clinician burnout.
CEO and co-founder Sahil Choudhry explained that this foundational insight was born from his experience on the payer side of healthcare. He noted that while access to therapy has improved, the quality and consistency of care remain a significant challenge across the industry. Handspring was created to bridge this gap by equipping well-meaning clinicians with the specialized training needed to produce reliable outcomes.
Addressing the Full Spectrum of Care
This investment in clinical expertise enables Handspring to treat a wide range of conditions, from mild anxiety to severe and complex cases. The company’s specialized Complex Care program is designed for high-risk youth who are often turned away from traditional outpatient services. This capability prevents unnecessary and costly escalations to emergency departments or intensive outpatient programs, a common issue in the current system.
By offering a continuum of care, patients can step up or down in intensity without having to switch providers or leave the platform. This integrated approach ensures that families are matched to the precise level of support a child needs, not just the most expensive option available. The model also incorporates parent coaching, viewing family involvement as an essential component of the therapeutic process.
Proven Growth and Technology-Driven Scale
The company's strategy has translated into remarkable growth, having served over 4,000 families and increased revenue more than tenfold in the last two years. This expansion is supported by a proprietary AI-enabled technology platform that streamlines the entire care journey for both families and clinicians. Co-founder and President Kwasi Kyei emphasized that this infrastructure is key to scaling high-quality care nationally.
Handspring’s effectiveness is validated by strong clinical data, with 81% of anxiety patients and 78% of depression patients showing meaningful improvement. Furthermore, the company maintains an exceptional Net Promoter Score of 81, reflecting high satisfaction and trust from the families it serves. These measurable outcomes are increasingly important as payers shift their focus from access to value-based care arrangements.
Future Plans and Strategic Expansion
The $19 million in new capital will be used to accelerate Handspring's expansion into new states and forge deeper value-based partnerships with health plans. The company also plans to enhance its technology platform, particularly by developing more tools to support parents between sessions. As part of the investment, Nancy Hilliker of RPS Ventures joins the board, with Sarah Fox of Angelini Ventures joining as an observer.
This Series B funding round positions Handspring to significantly scale its impact on youth mental health at a critical juncture for the industry. As the market matures, the company's focus on clinician development, evidence-based practices, and measurable outcomes provides a compelling solution for families and payers alike. The investment validates a model built not just for growth, but for delivering sustainable and effective care.