Company Overview
About Daybreak Health
Daybreak Health is a San Francisco-based school-based teletherapy platform — backed by Y Combinator (W20) with $25 million in total funding including a $13 million Series B in August 2023 led by Union Square Ventures with Lux Capital, Lightspeed Venture Partners, Maven Ventures, and Y Combinator, following a $10 million Series A in 2022 and $1.8 million seed in 2021 — providing school districts with high-quality, affordable, and culturally competent virtual mental health therapy for students, partnering with 60+ school districts since 2019 to address the student mental health crisis through personalized counseling delivered by licensed therapists through telehealth. Founded in 2019, Daybreak positions as the leading school-based teletherapy provider focused on making mental health support accessible to all students regardless of socioeconomic status.
Business Model & Competitive Advantage
Daybreak Health's school-embedded teletherapy model addresses the student mental health access gap that has reached crisis proportions: 1 in 5 US students experiences a significant mental health condition, yet 80% receive no treatment — not because need is unrecognized but because school counselors are overwhelmed (average ratio: 1 counselor per 424 students versus the recommended 1:250), community mental health providers have 6-12 week waitlists, and family-initiated outpatient therapy is inaccessible to families without insurance, transportation, or time for regular appointments. Daybreak's school partnership model (embedding licensed therapists into the school benefit structure, enabling students to attend virtual sessions during the school day, billing through school Medicaid or LEA-funded contracts) removes the access barriers that prevent students in need from receiving consistent therapy — the school-funded model also reduces the stigma barrier that prevents adolescents from asking parents to take them to therapy.
Competitive Landscape 2025–2026
In 2025, Daybreak Health competes in the school-based mental health, pediatric teletherapy, and student wellness market with Hazel Health (school-based health, $51M raised), Charlie Health (virtual intensive outpatient, $60M raised), and Brightline (virtual pediatric behavioral health, $105M raised) for school district mental health service provider adoption and student mental health platform access. Union Square Ventures' Series B leadership (USV has deep education technology portfolio) reflects conviction in the school district distribution channel for student mental health. The 60+ school district partnerships represent contracted ARR with institutional purchase decisions rather than consumer churn risk. The 2025 strategy focuses on expanding the school district network beyond 60 to 200+ districts, building the crisis intervention protocol integration for school counselor coordination, and growing the Medicaid billing optimization for school-based mental health reimbursement.
Open Positions
Reddit Discussions
Key Differentiators
Strong Challenger
Daybreak Health is an established challenger with significant market presence and competitive offerings in Healthcare.
Frequently Asked Questions
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