This mental health crisis is especially impacting low-income children, adolescents, and young adults on Medicaid, despite the $175B in funding dedicated to this population.

We’re excited to have you here! Explore our mission and see how you can make a real impact on an underserved population while channeling your passion for mental health. This is your chance to drive meaningful change and prosper from your investment, both personally and financially.

As part of your investment in Esteem Health, you'll have a chance to become an official Esteem Health Community Advisor with exclusive access to the management team and an opportunity to channel your passion for mental health when you invest at the rewards level.

Traditional healthcare models fail to serve Medicaid populations effectively due to provider shortages, long wait times, and barriers to accessing care.

With over 53 million Medicaid enrollees aged 5 to 30 years, there is a significant unmet need for accessible mental health services.

Nearly 80% of mental health providers do not accept Medicaid, creating a massive barrier to access for millions of individuals.

This shortage is particularly detrimental to low-income families who rely on Medicaid as their primary healthcare coverage.

This delay worsens mental health conditions, increases healthcare costs, and leads to long wait times and inadequate care, ultimately failing to meet the needs of the most vulnerable.

Delayed Care

Teens with depression often wait months for appointments, worsening symptoms and leading to dropout, self-harm, or ER visits.

Untreated Mental Health Issues

Contribute to school dropout, unemployment, homelessness, and criminal justice involvement, burdening communities and public systems.

Among Medicaid recipients, these disorders significantly drive the $607 billion annual Medicaid expenditure, leading to higher long-term costs and lost productivity due to delayed intervention.

Our Vision

We see a future where every Medicaid enrollee can access high-quality, data-driven mental health support without barriers like cost, location, or provider availability.

Our Approach

Esteem Health’s unique service and technology model bridges critical gaps in mental health care for Medicaid populations, offering immediate psychiatric support and culturally responsive care tailored to low-income populations.

Our approach integrates innovative solutions, such as early intervention, personalized care pathways, and a technology-driven platform, resulting in more effective, accessible, and sustainable mental health outcomes.

We are delivering immediate, equitable, and culturally appropriate mental health services through our proprietary psychiatric telehealth platform.

Esteem Health focuses on individuals aged 5 to 30 years within the Medicaid system, a demographic that includes children, adolescents, and young adults at high risk of developing mental health disorders.

This group is particularly vulnerable due to the challenges of navigating the complexities of Medicaid, provider shortages, and barriers to accessing timely care.

Direct Feedback

Patients frequently report high levels of satisfaction with the ease of accessing services, the quality of care, and the support provided by Esteem’s team.

Community Impact

Esteem’s services not only improve individual health but also contribute to stronger communities by supporting students, reducing behavioral issues, and enabling individuals to better manage their mental health.

Esteem Health offers same-day mental health care, reducing emergency room visits by addressing acute needs quickly.

Our diverse workforce provides culturally appropriate care that respects patients’ cultural, social, and linguistic needs, enhancing trust and treatment outcomes.

With a concierge approach, we deliver personalized scheduling, care coordination, and follow-up, ensuring Medicaid members receive high-quality, supportive service.

Immediate and Equitable Access

Esteem Health’s ability to provide same-day service sets it apart from most Medicaid providers who have long wait times and limited appointment availability.

This access is crucial for patients experiencing acute mental health needs, reducing the likelihood of emergency room visits and hospitalizations.

Culturally Appropriate Care

Esteem prioritizes culturally relevant care by recruiting a diverse workforce and offering services that respect the cultural, social, and linguistic needs of its patients.

This approach enhances patient trust, adherence to treatment, and overall satisfaction with care.

Concierge Approach

Esteem’s consumer-first approach treats Medicaid members with the same high level of service typically reserved for private-pay patients.

This includes personalized appointment scheduling, care coordination, and follow-up support, ensuring a seamless and supportive experience.

Meet Esteem Orbit Platform

At our core, we are a technology company which developed the Esteem Orbit Platform—our exclusive and proprietary system that powers Esteem Health’s service delivery.

This platform allows us to introduce much-needed digital health innovation at the patient level and serves as a competitive advantage, bringing cutting-edge solutions to mental health care while enabling rapid scaling without compromising quality.

Our platform’s efficiency in managing patient data, streamlining appointments, and supporting provider workflows positions Esteem for swift, scalable growth.

Digital Health Tools and Interventions

Our primary goal is to deliver services that promote life-changing health outcomes.

Through our patient app and digital health platform, Esteem Health connects directly with patients, making it easy to schedule appointments, access care, and track progress.

These tools also allow Esteem to gather valuable data on patient needs, preferences, and outcomes, further refining its approach.

We believe we are the first telepsychiatric platform whose care model includes digital health innovations that have long been out of reach for Medicaid patients.

By breaking down these barriers, we’re not just transforming care delivery—we’re ensuring that every Medicaid enrollee can benefit from the latest advancements in digital health, leading to better health outcomes across the board.

Future Innovations

Esteem is continuously developing new digital health solutions to enhance patient engagement and expand service offerings, keeping the company at the forefront of Medicaid mental health innovation.

The successful rollout of services in two counties—Fresno and Madera—demonstrated the effectiveness of Esteem’s service model, establishing a strong foundation for broader state and national expansion.

Scalability Proven

From a small pilot, Esteem quickly scaled to serve hundreds of Medicaid enrollees, demonstrating the ability to replicate its model across diverse communities and healthcare environments.

We have successfully negotiated and contracted with 14 Medi-Cal MCOs, representing 52 counties and covering over 6 million lives.

Rapid Patient Growth

Esteem Health has experienced significant patient growth, expanding from initial service offerings to now providing care in over 52 California counties.

The company’s ability to rapidly onboard patients highlights both the demand for its services and the efficiency of its psychiatric telehealth platform.

Proven Model Ready to Scale

Esteem Health has validated its model in California, demonstrating successful patient engagement, provider recruitment, and favorable MCO contracts. The next phase involves expanding into additional states, including Texas, Florida, Colorado and Ohio, where similar unmet needs and funding opportunities exist.

Recognized as an Innovation Leader

The California Department of Health Care Services (DHCS) was pleased to award a grant of $1,114,488.90 to Esteem Health.

Receiving this grant from the California Department of Health Care Services is a significant recognition of Esteem Health’s innovation and commitment to addressing critical mental health needs.

This award underscores the importance of our work in providing accessible, equitable, and effective care for underserved populations, highlighting our role as a leader in transforming mental health services for Medicaid recipients.

Revenue Growth Trajectory

Esteem Health is on track to grow from $2.3 million in Year 1 to over $54 million by Year 5, reflecting its ability to scale operations, expand into new markets, and capture a significant share of the Medicaid mental health market.

Fee-for-Service Model

Esteem Health operates primarily on a fee-for-service (FFS) model, receiving payments from Managed Care Organizations (MCOs) based on negotiated rates per service provided.

This includes evaluations, therapy sessions, medication management, and other psychiatric services.

Enhanced Reimbursement Rates

Through strategic negotiations, Esteem secures reimbursement rates significantly above standard Medicaid levels, ranging from 135% to 250% of typical Medi-Cal rates.

This financial structure ensures that services are both accessible to patients and financially sustainable for Esteem.

Managed Care Organization (MCO) Contracts

Partnerships with MCOs: Esteem Health’s partnerships with MCOs are central to its revenue model.

By providing services that align with MCO performance metrics, such as reducing emergency room visits and improving patient outcomes, Esteem Health demonstrates value that justifies higher reimbursement rates.

Expanding Contracts

As Esteem scales, it continues to secure additional MCO contracts in new regions, broadening its revenue base and ensuring consistent, scalable income streams as the company expands into new states.

Rising Market Demand:

The demand for mental health services is rapidly increasing, particularly among Medicaid populations who have been historically underserved.

Esteem Health’s proactive approach to filling this gap makes it a timely and strategic investment.

Government Commitment

Regardless of political changes, mental health funding within Medicaid is projected to increase over the coming decade as policymakers continue to prioritize mental and behavioral health.

This creates a stable and growing market environment for Esteem Health to thrive.

Proven Leadership and Execution Capability

Esteem Health is led by a team of experienced professionals with a track record of scaling healthcare businesses and driving innovation.

The company’s successful pilot in California and clear expansion strategy underscore its readiness to seize this market opportunity.

Invest $1,500 or more and join our exclusive Community Advisor Team. As a Community Advisor, you’ll have direct access to our leadership, share your insights, and be on the inside track of Esteem Health’s growth.

Your voice will help shape the future of mental health care, making a tangible difference alongside our team.

Financial Opportunity

Revenue Growth Potential

With an average lifetime value (LTV) of $2,920 per patient, Esteem Health has significant earning potential. The company’s high gross margins (between 55% and 70%) further enhance its financial viability and attractiveness to investors.

Contract Negotiation Success

• Esteem has successfully negotiated enhanced reimbursement rates with Managed Care Organizations (MCOs), securing payments between 135% to 250% of standard Medi-Cal rates.
• This success highlights Esteem’s ability to not only deliver value but also optimize financial outcomes within the Medicaid ecosystem.

Financial Projections Overview

The combination of technology, partnerships, and proven market demand positions Esteem Health to scale nationally, capturing a larger share of the Medicaid mental health market over time.

Revenue Growth Trajectory

• Esteem Health is on track to grow from $2.3 million in Year 1 to over $54 million by Year 5, reflecting its ability to scale operations, expand into new markets, and capture a significant share of the Medicaid mental health market.

Financial Sustainability and Profitability

• High Gross Margins: Esteem Health operates with gross margins between 60% and 70%, driven by efficient service delivery, enhanced reimbursement rates, and strategic cost management.
• These margins provide a strong foundation for profitability even as the company invests in growth and expansion.

Cost-Effective Provider Recruitment

• By recruiting providers from the communities it serves, Esteem minimizes recruitment costs while enhancing service quality and cultural competence.
• The company’s ability to attract diverse, mission-driven providers supports both patient engagement and financial sustainability.

Revenue Projections and Scalability

• Projected Revenue Growth: Esteem’s revenue is projected to grow from $2.3 million in Year 1 to over $54 million by Year 5, reflecting rapid patient acquisition, expanding service lines, and new market penetration.
• This growth trajectory highlights the scalability of Esteem’s business model and the significant financial opportunity it represents.

Long-Term Scalability

• The combination of technology, partnerships, and proven market demand positions Esteem Health to scale nationally, capturing a larger share of the Medicaid mental health market over time.

Seed Round Investment

Esteem Health is currently raising a $1.2 million Seed Round to support its next phase of growth, focusing on scaling operations, expanding into new states, and enhancing its technology platform.

Investment Use

• Funds will be used to accelerate market entry in new states, optimize the Esteem Orbit platform, and expand provider recruitment and training programs to meet growing patient demand.

Pre-Money Valuation

• Approximately $12.4M million on an undiluted basis, excluding stock options, reflecting Esteem’s proven model, market traction, and significant growth potential.

While we cannot guarantee these returns, we are committed to diligently following proven strategies to achieve the milestones outlined below.

Investor ROI Projections with Significant Upside Potential

Early investors in Esteem Health have the potential to achieve substantial returns due to the company’s high-margin business model, rapid revenue growth, and strategic positioning within an underserved market.

Acquisition Scenario

• Potential ROI ranges from 3x to 100x the initial investment based on comparable acquisitions in the mental health and telehealth sectors.
• Valuations for similar companies have ranged from $100 million to over $500 million, depending on market size, scalability, and revenue growth.

IPO Scenario

• Projected ROI could exceed 300x as public market investors value Esteem’s unique position in the Medicaid mental health market, with significant upside driven by expansion and continued innovation.

Secondary Market Sales

• Estimated ROI of 3x to 10x for investors who choose to exit early through secondary markets, depending on the timing of the sale and company valuation at the time.

The Unique Opportunity to Invest

• With rising demand for mental health services, now is the time to invest and be part of a mission that prioritizes both impact and returns.
• Your support will expand access to life-changing mental health services, enhance technology, and help us lead in Medicaid mental health care through strategic partnerships.
• Investing in Esteem Health means more than financial gain—it’s about driving meaningful change.

On behalf of the rest of the Esteem Health team and the hundres to thousands of families we current and will in the future serve, thank you for taking the time to review our information.

If you have any questions please don't hesitate to reach out directly and I'll do my best to respond within 24 to 48 hours.

Best,

Austin Miller

CEO & Co-Founder

Esteem Health

805-464-1265

The appendix offers a deeper dive into key areas for your due diligence process. Below is a more detailed overview to support your evaluation. Should you have any questions, feel free to reach out to me directly at [email protected].

1. Revenue Structure

2. Limited Competition in the Medicaid Space:

3. Cost Management and Profitability

4. Investor ROI Projections

5. Primary Exit Strategies:

6. Market Comparables and Valuation Insights

7. Maximizing Exit Value

1. Revenue Structure

Fee-for-Service Model:

Esteem Health operates primarily on a fee-for-service (FFS) model, receiving payments from Managed Care Organizations (MCOs) based on negotiated rates per service provided. This includes evaluations, therapy sessions, medication management, and other psychiatric services.

Enhanced Reimbursement Rates:

Through strategic negotiations, Esteem secures reimbursement rates significantly above standard Medicaid levels, ranging from 135% to 250% of typical Medi-Cal rates. This financial structure ensures that services are both accessible to patients and financially sustainable for Esteem.

Managed Care Organization (MCO) Contracts:

Partnerships with MCOs: Esteem Health’s partnerships with MCOs are central to its revenue model. By providing services that align with MCO performance metrics, such as reducing emergency room visits and improving patient outcomes, Esteem Health demonstrates value that justifies higher reimbursement rates.

Expanding Contracts:

As Esteem scales, it continues to secure additional MCO contracts in new regions, broadening its revenue base and ensuring consistent, scalable income streams as the company expands into new states.

High Patient Satisfaction and Retention:

Esteem Health’s personalized, immediate access to care has resulted in high patient satisfaction rates. The company’s concierge approach, culturally relevant care, and ability to offer same-day appointments distinguish it from traditional Medicaid providers.

Retention Rates:

Esteem has achieved impressive patient retention rates, with many patients choosing to remain engaged with their mental health care long-term due to the accessible and supportive nature of Esteem’s services.Managed Care Organization (MCO) Contract Success

Favorable Reimbursement Rates:

Esteem Health has successfully negotiated contracts with key MCOs, securing reimbursement rates between 135% and 250% of standard Medi-Cal rates. These enhanced rates not only validate the value Esteem provides but also support the financial sustainability of the business model.

Proving Ground Markets:

Contracts with select MCOs have served as proving grounds for Esteem’s innovative, tech-enabled care model, demonstrating the effectiveness of telepsychiatry within the Medicaid ecosystem.Competitive Advantage

2. Limited Competition in the Medicaid Space:

Most mental health startups focus on private pay, employer-sponsored, or commercial insurance markets, leaving the Medicaid segment underdeveloped and underserved. Esteem Health is one of the few companies built from the ground up to serve the Medicaid population, giving it a significant first-mover advantage.

Proven Business Model:

Esteem Health has demonstrated success with its innovative telepsychiatry and workflow platforms, as well as its concierge-like approach that appeals to Medicaid members who typically experience poor service quality. This differentiation positions Esteem as a leader in the space with a replicable, scalable model.

Ability to Scale Quickly:

By leveraging its proprietary technology and efficient service delivery model, Esteem Health can rapidly scale across states, meeting the surging demand for mental health services in new regions.

Technological Integration:

With the rise of digital health, there is a growing push to incorporate telehealth solutions into the Medicaid ecosystem. Esteem Health is at the forefront of this movement, leveraging technology to overcome traditional barriers to care.

3. Cost Management and Profitability

Cost of Goods Sold (COGS):

Esteem Health maintains efficient service delivery with a projected COGS of $1.0 million in Year 1, growing to $18.9 million by Year 5, reflecting increased patient volumes and service scaling.

The incremental costs of adding new patients remain low due to the tech-enabled model, allowing Esteem to maintain strong margins as it grows.

Gross Margin Performance:

Gross margins are projected to improve from 55% in Year 1 to 65% by Year 5, driven by enhanced reimbursement rates, improved operational efficiencies, and economies of scale as Esteem expands.

Net Revenue and Margin Expansion:

Esteem Health’s net revenue is projected to grow significantly, from $1.3 million in Year 1 to $35.2 million by Year 5, reflecting successful scaling and strategic cost management.

Esteem’s revenue model and market expansion strategy position it to achieve $50 million in annual revenue within five years, with the potential for substantial returns for early investors.

Capturing Market Share:

Esteem Health is on track to become a leading provider of mental health services within the Medicaid ecosystem, capturing significant market share through its innovative, patient-centered approach.

Scalable Impact:

As Esteem continues to expand, it will not only drive financial growth but also set the standard for how mental health care is delivered to low-income populations nationwide.

4. Investor ROI Projections

Significant Upside Potential:

Early investors in Esteem Health have the potential to achieve substantial returns due to the company’s high-margin business model, rapid revenue growth, and strategic positioning within an underserved market.

ROI Scenarios:

Acquisition Scenario: Potential ROI ranges from 5x to 10x the initial investment based on comparable acquisitions in the mental health and telehealth sectors. Valuations for similar companies have ranged from $100 million to over $500 million, depending on market size, scalability, and revenue growth.

IPO Scenario:

Projected ROI could exceed 10x as public market investors value Esteem’s unique position in the Medicaid mental health market, with significant upside driven by expansion and continued innovation.

Secondary Market Sales:

Estimated ROI of 3x to 5x for investors who choose to exit early through secondary markets, depending on the timing of the sale and company valuation at the time.

5. Primary Exit Strategies:

Acquisition by Larger Healthcare Companies:

Attractive Target for Health Tech and Virtual Clinics:

As a leading provider in the underserved Medicaid mental health market, Esteem Health is an attractive acquisition target for well-funded companies looking to expand their service offerings into this segment.

Potential Acquirers:

Non-Competing Virtual Clinics:

Companies like Spring Health and Headspace Health, which focus on employer-sponsored mental health services, could acquire Esteem to diversify into Medicaid without cannibalizing their existing market.

Telemedicine Giants:

Telehealth leaders such as Amwell and MDLIVE are expanding into specialized services, including mental health. Esteem Health’s Medicaid focus and existing provider network make it a valuable addition.

Large Retailers with Healthcare Strategies:

Companies like CVS, Walgreens, and Dollar General are investing heavily in healthcare services. An acquisition of Esteem Health would allow these retailers to offer comprehensive mental health solutions tailored to low-income populations.

- Initial Public Offering (IPO)

IPO Potential as a Scalable National Leader:

As Esteem Health scales nationally and captures a larger share of the Medicaid mental health market, it will position itself as a candidate for a public offering. The growth trajectory, market size, and recurring revenue streams make an IPO a viable and potentially lucrative exit.

IPO Timing:

Targeting an IPO in five to seven years as the company reaches critical mass in key states, demonstrating consistent growth, profitability, and market leadership.

- Secondary Market Liquidity

Pre-Exit Liquidity Options for Investors:

Investors may have the opportunity to sell their shares through secondary markets such as Forge Global, EquityZen, and EquityBee, providing a pathway to liquidity prior to a formal exit event.

Future Investment Rounds:

As Esteem Health continues to raise capital for expansion, secondary sales during new funding rounds can offer investors partial or full exits, allowing them to realize returns sooner.

- Alternative ROI Strategies

Strategic Partnerships and Joint Ventures:

Leveraging Partnerships for Strategic Buyouts:

Esteem Health’s strong relationships with Managed Care Organizations (MCOs) and other healthcare partners create opportunities for strategic buyouts. An MCO or healthcare network could acquire Esteem to vertically integrate mental health services, enhancing care coordination and reducing costs.

Joint Ventures with Health Systems:

Collaborating with large health systems or state Medicaid agencies on joint ventures can lead to buyout opportunities where Esteem becomes a core part of broader healthcare delivery strategies.

Dividends and Revenue Sharing:

Potential for Dividends in Mature Phases:

As Esteem Health’s revenue stabilizes and cash flow increases, the company may consider implementing dividend distributions or revenue-sharing agreements, providing ongoing returns to investors.

Profitability Milestones:

Dividends may be tied to reaching key profitability milestones, aligning investor returns with Esteem’s financial performance and long-term success.

6. Market Comparables and Valuation Insights

Comparable Company Analysis:

Companies like Brightline (valued at $212 million) and Little Otter (valued at $26 million) focus on pediatric mental health and have shown strong investor interest despite primarily serving private pay markets. Esteem’s focus on Medicaid represents a larger, more untapped opportunity.

Virtual mental health platforms targeting specific populations, such as Talkspace and Ginger, have achieved valuations exceeding $1 billion, underscoring the market potential for scalable mental health services.

7. Maximizing Exit Value

Strengthening Financial Metrics:

Esteem Health’s focus on enhancing gross margins, expanding MCO contracts, and maintaining high patient retention rates directly supports valuation growth. Consistent financial performance positions the company for higher valuations during exit negotiations.

Continuous Innovation:

Esteem’s ongoing development of digital health solutions and expansion into value-based care models will further enhance its attractiveness to potential acquirers and investors, driving exit value.

Brand Strength and Market Leadership:

By establishing itself as a trusted leader in Medicaid mental health care, Esteem builds brand equity that enhances exit valuations, attracting interest from strategic buyers and public market investors.