Mental Health Startup Headway Closes $125 million Series C, Propelling Valuation to $1 billion

Headway is rewiring a new mental healthcare system for access and affordability.

Oct 6, 2023

Healthcare tech startup Headway, led by CEO Andrew Adams, has raised $125 million in Series C funding, pushing its valuation to $1 billion. The financing round was spearheaded by Spark Capital, a venture capital firm, and garnered support from existing investors such as Thrive Capital, Accel, and Andreessen Horowitz. Notably, Health Care Service Corporation, an insurance company, also participated in this strategic funding initiative.

Headway distinguishes itself with its unique provider-first approach, offering a platform that seamlessly connects patients with therapists and psychiatrists while ensuring that the care provided is covered by insurance. Furthermore, the company provides billing and claims software to streamline administrative processes for healthcare providers. This innovative model has unlocked opportunities for therapist entrepreneurs by simplifying insurance acceptance, thereby attracting a growing patient base. The influx of $125 million in funding will be directed towards expanding Headway's network and intensifying marketing efforts to support providers in acquiring more patients. Presently, Headway boasts one of the largest networks of therapists and psychiatrists in the United States, with 26,000 providers in-network, serving 19 different insurance plans. This strategic funding comes as the mental health sector experiences substantial growth, driven by increased demand due to the pandemic and a surge in venture capital investments.