Joon Care Acquired by Handspring Health: A Strategic Merger in Youth Mental Healthcare
In a significant development for the digital mental health landscape, Seattle-based startup Joon Care has been acquired by New York’s Handspring Health. Announced by Handspring CEO Sahil Choudhry on December 11, 2025, the acquisition represents a strategic consolidation in the increasingly important youth and family mental healthcare sector. While specific financial terms weren’t disclosed, the merger brings together two companies with complementary approaches to addressing mental health challenges among young people. For Joon Care, which emerged from Seattle’s vibrant startup ecosystem in 2019, the acquisition marks a new chapter after several years of growth and expansion across multiple states. The company, led by CEO Emily Pesce (a finalist for Startup CEO of the Year at the 2023 GeekWire Awards), had previously secured $9.5 million in funding to support its innovative approach to mental healthcare for teens and young adults.
The foundation of Joon Care’s service model has been its specialized focus on the 13-26 age demographic, a critical period when many mental health challenges first emerge. The company developed a comprehensive therapeutic approach combining digital tools with virtual therapy sessions, designed to address a spectrum of issues including anxiety, depression, disordered eating, sexual and gender identity questions, and academic problems. What distinguished Joon’s methodology was its commitment to evidence-based care strategies and regular patient assessments to measure therapeutic progress. Their standard treatment protocol typically spans 16 weeks, providing structured support during what can be tumultuous developmental years. This focus on measurable outcomes and evidence-based approaches made the company particularly attractive to insurance providers, with Joon successfully securing coverage agreements with 16 insurers, including major players like Aetna and UnitedHealthcare.
Handspring Health, founded more recently in 2021, brings its own strengths to the merger. Having raised $18.2 million according to PitchBook data, Handspring has been building a parallel but complementary service, targeting a slightly broader age range of 8-29 years. In announcing the acquisition, Choudhry emphasized that the combined entity aims to create “the most clinically rigorous and digitally engaging platform for youth and family mental healthcare in the country.” This suggests that the merger isn’t merely about market consolidation, but rather about leveraging the technological and clinical expertise of both organizations to enhance service quality and reach. The integration appears focused on creating a more comprehensive continuum of care that can support young people throughout their developmental journey, from childhood through early adulthood – periods when early intervention and consistent support can have profound long-term benefits.
Both companies have established multi-state operations, with Joon licensed in Washington, Oregon, California, Texas, New York, Delaware, and Pennsylvania. This geographic diversity provides the merged entity with a substantial footprint across major U.S. markets and diverse regulatory environments. Beyond its commercial operations, Joon Care had also demonstrated a commitment to community service through its 2023 partnership with the City of Seattle, providing free care to clients referred through municipal human services programs. Handspring has confirmed that these existing contracts with government agencies will be maintained, preserving important access pathways for vulnerable populations who might otherwise struggle to obtain quality mental healthcare. This continuation of public service commitments suggests that the merged company intends to balance commercial growth with social responsibility.
The acquisition occurs against the backdrop of growing recognition of the youth mental health crisis in America. Even before the pandemic exacerbated conditions, teenagers and young adults were experiencing rising rates of anxiety, depression, and other mental health challenges. The digital-first approach pioneered by companies like Joon and Handspring has proven particularly effective in reaching younger populations who are often more comfortable with technology-mediated interactions. By combining forces, these companies appear positioned to refine their clinical approaches while potentially achieving economies of scale that could make their services more accessible and affordable. While Handspring announced it would be integrating the companies’ “expert teams,” it remains unclear whether all of Joon’s approximately 50 employees will be retained in the new organization, raising questions about potential consolidation of operations.
The merger of Joon Care and Handspring Health reflects broader trends in the healthcare industry toward digital transformation and specialized care models. As mental healthcare increasingly moves beyond traditional office-based practices, companies that can effectively combine clinical excellence with technological innovation stand to reshape how services are delivered. For the families and young people who rely on these services, the hope is that this acquisition will translate into expanded access, improved quality, and greater continuity of care during critical developmental periods. While the full integration of these companies will likely take time to implement, their shared focus on evidence-based approaches and measurable outcomes provides a promising foundation. In an era when mental health support for young people has never been more crucial, this merger represents not just a business transaction but potentially a meaningful advancement in addressing one of society’s most pressing health challenges.
