Daybreak Health

daybreakhealth.com →

-39%

est. 2Y upside i

HealthcareSeries B

The first digital mental health system for youth

Rank

#1098

Sector

Digital Mental Health

Est. Liquidity

~4Y

Data Quality

Data: Medium

Daybreak Health operates in a rapidly expanding youth digital mental health market ($8.1B TAM, 8% YoY growth), with a specialized focus on K-12 schools and strong partnerships with health plans and Medicaid.

Last updated: March 10, 2026

Bull (35%)+250%

Daybreak Health leverages its deep K-12 integrations and 'no-cost to district' model, expanding rapidly across states with strong Medicaid partnerships like Medi-Cal. Revenue grows to $100M+ by 2028, justifying a $630M+ valuation at 6.3x revenue, driven by its specialized niche and efficient operating model.

Base (30%)+50%

Daybreak Health maintains its strong position in the school-based mental health market, growing steadily at ~30% YoY. Revenue reaches $50M by 2028, leading to a $270M valuation at 5.4x revenue, as it continues to navigate regulatory complexities and moderate competition.

Bear (35%)-60%

Larger digital health incumbents like Talkspace or Brightline aggressively enter the K-12 segment, commoditizing services and increasing pricing pressure. Daybreak's growth stalls, leading to a down round or acquisition at a significantly reduced valuation of $72M, wiping out most common stock value given the preference stack.

Est. time to liquidity~3.5 years

Preference Stack Risk

moderate

Investors hold $25M in liquidation preferences. In an exit at or below the current $180M valuation, common shareholders would still see value, but the preference stack represents a meaningful portion of the total valuation.

Dilution Risk

moderate

As a Series B company, Daybreak Health will likely require at least one more significant funding round (Series C) before a potential liquidity event, which will lead to further dilution for existing common shareholders.

Secondary Liquidity

none

There is no indication of active secondary markets or tender offers for Daybreak Health's equity at this stage.

View all 37 open roles at Daybreak Health →

Last updated: February 22, 2026

Questions to Ask at the Interview

Strategic questions based on Daybreak Health's data — designed to show you've done your homework.

  • 1

    “How is Daybreak Health planning to differentiate its offerings and maintain its competitive moat against larger digital health platforms like Talkspace and Brightline, especially as they potentially expand into the youth and school-based mental health space?”

  • 2

    “Given the estimated $25M in annual revenue and the significant market opportunity, what are the key strategic initiatives to accelerate growth beyond the current trajectory, particularly leveraging the recent Medi-Cal and 'no-cost to district' partnerships?”

  • 3

    “As a Series B company, what is the anticipated timeline and strategy for a liquidity event (e.g., IPO or acquisition), and how does the company plan to manage potential dilution for employees in future funding rounds?”

Community

Valuation Sentiment

Our model estimates -39% upside. What do you think?

Anonymous. Do not share material non-public information.

Community Discussion

Comments are reviewed before they appear publicly.

0/2000

Loading comments...

Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.