InStride Health, a Boston-area virtual specialty provider delivering evidence-based anxiety and OCD treatment for kids, teens, and young adults ages 7-24, has raised $30M in Series C funding led by Echo Health Ventures and FMZ Ventures. The model pairs patients with a dedicated three-person care team including a therapist, exposure coach, and psychiatrist for real-world practice sessions. The capital will accelerate state expansion and payer partnerships across the East Coast.
Specialist Model Gains Traction
The timing aligns with surging demand for targeted pediatric mental health services. Brightline raised over $212M including a Series C at $705M valuation in 2022, while Charlie Health secured roughly $300M in its largest round during 2024-2025. InStride differentiates through narrow focus on anxiety and OCD with in-vivo exposure coaching, rather than broad condition coverage.
Youth Anxiety Rates Climb Sharply
Anxiety diagnoses among children aged 3-17 rose from 7.1% in 2016 to 10.6% in 2022, a nearly 50% increase. OCD affects roughly 3% of youth and often co-occurs with anxiety disorders. Twenty percent of adolescents report unmet mental health needs, and wait times for specialty OCD care can exceed six months.
Exposure Coaching Model Stands Apart
InStride's 4-8 month program combines CBT and exposure therapy delivered partly in patients' actual environments like schools and stores via text, phone, and video. This contrasts with typical video-only telehealth approaches from competitors. The company reports 97% of graduates experience clinical improvement based on 3,604 episodes of care.
As co-founders Dr. Mona Potter and Dr. Kathryn Boger noted in recent coverage:
"Treatment isn't meant to last forever — but it should lead to lasting change."
Mission Investors Signal Payer Focus
Echo Health Ventures and FMZ Ventures led the round with participation from Valtruis, .406 Ventures, General Catalyst, and Mass General Brigham Ventures. Total funding now stands at $86M. The investor mix brings health plan expertise that aligns with InStride's in-network status with major insurers including Aetna, Anthem, BCBS, Cigna, UnitedHealthcare, Oscar, and Optum.
Pediatric Behavioral Health Market Expands
The pediatric behavioral health market is projected to grow from $450.1B in 2026 to $907.5B by 2035 at a 5.5% CAGR. Telehealth for pediatric mental health is expanding even faster at 29.7% CAGR through 2034. InStride's outcomes transparency and time-bound program position it for value-based contracts as payers prioritize measurable results.
Founders Bring McLean Clinical Expertise
Co-founders Dr. Mona Potter and Dr. Kathryn Boger previously developed the McLean Anxiety Mastery Program at Harvard-affiliated McLean Hospital. CEO John Voith previously spent nearly seven years at athenahealth leading interoperability initiatives and co-founded a teledentistry company. This combination of clinical specialization and health tech scaling experience underpins the company's approach.
Expansion Plans Target East Coast States
InStride announced state expansion across the East Coast alongside its third annual outcomes report. The company now operates in 17 states and has treated over 5,000 patients with an average wait time under three days.