Headway, a mental health platform, has successfully closed a $125 million Series C funding round, led by Spark Capital, which has propelled the company’s valuation to over $1 billion. Previous investors a16z, Accel, and Thrive participated in this funding round, along with new strategic investors led by Health Care Service Corporation. As part of the investment, Will Reed, General Partner at Spark Capital, will join Headway’s board of directors.
Headway’s platform serves as a bridge between patients and in-network therapists, as well as connecting private practice therapists to insurance companies. Users can input their health plan details into the platform’s free tool, enabling them to search for therapists who are in-network. The platform also assists therapists in connecting with insurance panels and facilitates booking, billing, and other administrative tasks.
This new funding will support Headway in advancing its technology and expanding the availability of its platform to all 50 U.S. states and the District of Columbia. The company also plans to introduce products that will enable providers to work across state lines by 2024.
Andrew Adams, Founder and CEO of Headway, expressed, “I founded Headway after I couldn’t find a therapist who accepted my insurance—a problem millions of Americans face each year. This funding will enable that nationwide expansion and allow us to further invest in the partnerships and tools that will help providers grow their practice.”
Headway had previously raised $70 million in Series B funding in 2021, following a $26 million Series A round just six months prior. The company operates in the tech-enabled mental health space alongside other firms such as Meru Health, Happify Health, Headspace Health, and Calm, which offer a range of mental health and well-being solutions.
