
Telehealth Solutions Provider Headway Raises $125 Million in Series C Round; Plans Continued Expansion in Mental Health
Headway, a U.S.-based healthcare tech startup in the mental health industry, has recently secured $125 million in Series C funding at a valuation of $1 billion. The company has an innovative approach in mental health for connecting patients with in-network therapists and psychiatrists. The funding round was led by Spark Capital, a prominent venture capital firm, and saw participation from Headway’s existing investors, including Thrive Capital, Accel, and Andreessen Horowitz and Health Care Service Corporation, an insurance company.
Headway, headquartered in New York has developed a platform that bridges the gap between patients in need of mental health services and therapists and psychiatrists who can provide this care under the umbrella of insurance coverage. Additionally, the startup offers billing and claims software solutions designed to streamline administrative processes for healthcare providers. The company has 26,000 providers that use its network across 19 insurance plans.
With this additional capital, Headway plans to further expand its network and intensify marketing efforts aimed at helping healthcare providers on its platform attract new patients. A recent study in the Journal of the American Medical Association that looked at 12,828 mental health treatment facilities found that 88% of facilities offered telehealth options in 2022 compared to 39% in 2019 showing the pandemic’s impact on care trends.