New York-based mental health platform Headway announced it had secured $100 million in Series D funding, more than doubling its valuation to $2.3 billion.
The round was led by Spark Capital, with participation from existing investors a16z, Thrive Capital and Accel, as well as new investor Forerunner Ventures.
The company also announced plans to expand its services to individuals with Medicare Advantage, Medicaid and other commercial plans.
What it does
Through Headway’s platform, users enter their health insurance information and search for in-network therapists and those in private practice.
The platform connects therapists to insurance panels and assists with bookings, billing, and other back-end tasks.
Headway will use the funding to accelerate product development that streamlines clinicians’ private practice operations, including building tools to accelerate Medicare and Medicaid eligibility timelines and compliance obligations.
“The company is uniquely positioned to bring together providers, patients and payers to unify a fragmented system, and Spark Capital is pleased to further support its mission and growth,” Will Reed, general partner at Spark Capital and a director at Headway, said in a statement.
Market Snapshot
according to According to Rock Health’s Digital Health Funding Report for the First Half of 2024, released earlier this month, mental health topped the list of most-funded clinical indications within the digital health sector in the first half of the year, raising $682 million.
Headway’s latest funding comes just a year after the company closed its first fundraising round. It raised $125 million in a Series C round, achieving unicorn status.
The company In 2021, six months after raising $26 million in a Series A round, the company raised $70 million in a Series B round.
In December, Headway announced it was expanding to all 50 states and the District of Columbia in collaboration with Evernorth Health Services, Blue Cross Blue Shield of Massachusetts and Blue Cross Blue Shield of Texas.
Other companies offering virtual mental health services include online therapy companies. BetterHelp, pediatric virtual behavioral health company Brightline, telemedicine company Talkspace and virtual mental health care provider Iris Telehealth.
