Fundraising Fox

Daybreak Health

YC S20

San Francisco, US · Founded 2020 · 20 employees · 10 known investors

Daybreak Health provides mental health support services to schools, helping school districts build and manage student mental health programs serving over 1 million students across the U.S. The company supports school leaders in hiring clinicians, delivering care, and measuring impact in youth mental health.

Also known as Elemental Health · Daybreak

Founders & leadership· Y Combinator alumni (S20)

Daybreak Health was founded in 2020 by Alex Alvarado and Sid Cidambi.

AAAlex Alvarado
Alex AlvaradoinCo-founder · CEOAlex Alvarado graduated from Stanford in 2012 and has spent the past decade developing digital health products; he is now building a digital mental health clinic for young people at Daybreak Health.
SCSid Cidambi
Sid CidambiinCo-Founder & President

Investors · 10

Also in the syndicate · 1

Union Square Ventureslead

Funding

SEC filings, press & company announcements

Source: company announcements and press reports — follow each round's link for the claim.

Company profile

researched Aug 2026

Daybreak Health is a school-based youth mental health provider that partners with K-12 school districts to deliver evidence-based teletherapy, in-person therapy and universal mental health screeners for students. Its core program provides video-based 1:1 sessions of about 50 minutes held weekly with a matched therapist, with text-based messaging support between sessions; clinicians are available between 7am and 8pm on weekdays, on Saturdays and during school breaks, and sessions can occur at home or at school, inside or outside school hours. The standard treatment cycle runs 12+ weeks and is designed to continue until measurable symptomatic, functional and behavioral improvement, with the option to extend if the therapist and school counselor agree. Programs cover grades K-12, with family therapy for elementary-aged children and 1:1 work for students aged 10 and older; the company does not provide psychiatry or prescribe medication.

Students are matched with clinicians through a process that accounts for presenting need, cultural background, language, clinical style, personality and schedule. The company reports its clinicians specialize across 26 mental health conditions and 13 modalities of care, and that 74% identify as BIPOC and 14% as members of the LGBTQIA+ community. Specialized sub-programs target populations at higher risk of mental health challenges, including BIPOC, LGBTQIA+, low-income, rural and homeless youth. Beyond direct care, Daybreak offers mental health classes for school staff and families and early-identification tools for students who could benefit from support. Its platforms are described as compliant with federal and state privacy laws including FERPA and HIPAA, with student therapy records owned by students and parents and the public agency receiving a subset such as session attendance, intake and discharge.

At launch in 2020 the company worked with a team of ten clinicians and roughly 20 Bay Area schools and pediatric groups, initially focused on teens aged 13-19, with an hour-long intake consultation for both teen and parent, and additional "trained listener" support for less acute cases. It has since expanded nationally to work with school districts across the U.S.

Founding story

Co-founder and CEO Alex Alvarado's younger brother struggled with depression from age twelve through middle and high school; the family spent years unable to find affordable, accessible care, as schools then offered little mental health support and local therapists who accepted their insurance were hard to find. His brother experienced a crisis, attempted to take his own life, and ultimately dropped out of school. Alvarado, a Stanford '12 graduate who had spent about a decade building digital health products, founded Daybreak with Siddarth (Sid) Cidambi and Luke Mercado; Alvarado and Cidambi had both worked at consulting firm Oliver Wyman, and Alvarado and Mercado knew each other from the healthcare startup Jiff, later acquired by Castlight Health.

Business model

Daybreak contracts with school districts to operate or extend their student mental health programs, and bills covered sessions to health insurance. It states partnerships with more than 50 health plans so that children on Medicaid or commercial insurance are covered; in many district partnerships therapy is available to families at no cost, while in some cases families are responsible for an insurance co-pay. In certain district arrangements claims are not submitted to insurance at all. At launch, care was covered either through insurance or an $89 per-week fee.

Revenue comes from district partnership contracts combined with insurance reimbursement — claims submitted to Medicaid and commercial plans for covered teletherapy sessions — with some cases involving family co-pays. An early direct-pay option was priced at $89 per week.

Traction

The company reports district partnerships representing more than 1.5 million enrolled students and partnerships with over 50 health plans. In August 2023 it cited over 60 district partners in the U.S., and its story page cites support for the mental health programs of more than 60 school districts representing more than 1 million students. Reported outcomes include 81% of students improving on the GAD/PHQ (with 81% of students in the 2022-23 school year showing symptomatic and behavioral improvements), 80% of school staff reporting improvements in attendance, grades and behavior, 92% of families reporting behavioral improvements at home, and 90% of students reporting a good clinical match. Y Combinator lists a team size of 20.

Latest developments

In August 2023 Daybreak announced a $13 million Series B led by Union Square Ventures, with new investor Lux Capital and existing investors Lightspeed Venture Partners, Maven Ventures and Y Combinator, earmarked for geographic expansion and partnerships with additional school districts. The company was hiring for roles including school enablement and licensed therapist positions.

Full profile — market position, technology, go-to-market, geography, history

Market position

The company describes itself as the leading provider of school-based mental health services and as the only telehealth provider offering a hybrid model that combines teletherapy with onsite clinicians. Y Combinator characterizes it as the first digital mental health system for youth. Investors and the company frame the offering as an extension of school districts' mental health infrastructure, citing the gap between the recommended ratio of one school psychologist per 500 students and an estimated actual ratio of one per 1,211. Coverage at launch noted other online teen counseling services, such as TeenCounseling, in the market.

Stated differentiators include a full treatment cycle of 12+ weeks aimed at concrete improvement rather than short-term transitional care; a hybrid delivery model pairing teletherapy with onsite clinicians; culturally responsive clinician matching with a diverse clinical workforce; specialized sub-programs for higher-risk student groups; and integration with existing school-based teams for referrals and capacity expansion. The company also screens out students who do not need treatment, having turned away prospective customers at launch.

Technology

Daybreak delivers care over a video-based teletherapy platform with text messaging between sessions, plus a smart matching system that pairs students to clinicians on presenting need, clinical style, personality, language and schedule. It uses universal screeners for early identification and standardized instruments such as GAD/PHQ to measure symptom change, and reported developing a mobile app for communication and self-guided exercises intended to complement rather than replace therapist-led care. Platforms are stated to comply with FERPA and HIPAA and with district data privacy agreements.

Go-to-market

Sales are directed at school districts and school-based teams, with the school counselor or wellness coordinator as the main touchpoint; counselors and families submit student referrals. The company markets by reaching out to school counselors (it does not pay for referrals) and publishes district-facing content such as a State of Youth Mental Health report and a mental health needs assessment. Health plan contracting supports coverage and affordability for families.

Public and private K-12 school districts and schools, and, at launch, pediatric groups; end users are students in grades K-12 (ages 5-19) and their families, including sub-populations identified as higher-risk such as BIPOC, LGBTQIA+, low-income, rural, homeless and immigrant-household youth.

Geography

Headquartered in San Francisco, with operations beginning in Bay Area schools and pediatric groups and expanding to school districts across the United States, including Simi Valley Unified School District in California. Clinician roles are listed as remote, including California- and Kaiser-licensed therapist positions.

History

Daybreak Health was founded in 2020 and participated in Y Combinator's Summer 2020 batch. It launched publicly in July 2020 with ten clinicians serving about 20 Bay Area schools and pediatric groups, treating teens aged 13-19. It brought on Dr. Neha Chaudhary of Stanford's Brainstorm Lab as an advisor to help design its clinical program. The company later expanded to K-12 (ages 5-19) programs nationwide, added in-person therapy and universal screeners, and by August 2023 worked with more than 60 school districts. It raised a $13 million Series B in August 2023, bringing total capital raised to $25 million.

Compiled by commissioned research from 8 cited public sources — announcements, filings, and press listed under research sources below.

Key figures

latest reported
Clinicians at launchJul 202010 clinicians
Clinicians identifying as BIPOCJan 202574%
Clinicians identifying as LGBTQIA+Jan 202514%
Direct-pay price of care at launchJul 2020$89
Enrolled students represented by partner school districtsJan 2025more than 1.5 million
Families reporting behavioral improvementsJan 202592%
HeadcountAug 2026216
Health plan partnersJan 202550+
Mental health conditions covered by clinician specializationsJan 202526 conditions
Modalities of care offeredJan 202513 modalities
Partner schools and pediatric groups at launchJul 202020 schools and pediatric groups
School district partnersAug 202360 districts
School staff reporting improvements in attendance, grades and behaviorJan 202580%
Students improving on GAD/PHQJan 202581%
Students reporting they were matched to the right clinicianJan 202590%
Students showing symptomatic and behavioral improvements in 2022-23 school yearAug 202381%

Company-reported or press-reported figures, each dated to when it was claimed — not independently audited.

Competitors · 2

by search overlap

Companies competing with Daybreak Health for the same Google search keywords, organic and paid, via search-intersection analysis.

Timeline · 4

launches, deals, and filings
Aug 2023
Daybreak Health raises $13M Series B led by Union Square Ventures

Daybreak Health announced a $13 million Series B round led by Union Square Ventures with new investor Lux Capital and existing investors Lightspeed Venture Partners, Maven Ventures and Y Combinator, bringing total capital raised to $25 million. Proceeds were earmarked for geographic expansion and partnerships with more school districts.

$13M source ↗

Aug 2023
Partnership with Simi Valley Unified School District

Simi Valley Unified School District in California is cited as a district partner, with its superintendent describing the program's use by staff and students.

source ↗

Jul 2020
Daybreak Health launches online mental health therapy for teens

The Y Combinator-backed company launched a full-stack teletherapy program for teens aged 13-19, working with ten clinicians and about 20 Bay Area schools and pediatric groups, with care covered by insurance or an $89 per-week fee.

source ↗

Jan 2020
Participation in Y Combinator Summer 2020 batch

Daybreak Health was part of Y Combinator's Summer 2020 batch, with Aaron Epstein listed as primary partner.

source ↗

Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.

In the news

Research sources · 8

primary sources listed

8 public sources were cited for this profile; the first-party ones are listed here.

Frequently asked questions

What does Daybreak Health do?
Daybreak Health partners with K-12 school districts to deliver teletherapy and in-person mental health care to students.
Who founded Daybreak Health?
Daybreak Health was founded by Alex Alvarado, Sid Cidambi in 2020.
Who are Daybreak Health's investors?
Daybreak Health's investors include Atacama Ventures, Maven Ventures, Moxxie Ventures, Open Opportunity Fund, Union Square Ventures (USV), Y Combinator, Lightspeed Venture Partners, SignalRank and 1 more.
Where is Daybreak Health headquartered?
Daybreak Health is headquartered in San Francisco, US.