Headway hits $1-billion valuation after latest fundraise

Mental health startup Headway announced Thursday that it raised $125 million in a Series C funding round, pushing its valuation to $1 billion, in line with estimates that surfaced earlier this year. The New York-based company's platform connects patients with in-network therapists and psychiatrists who provide care covered by insurance.

CEO Andrew Adams said Headway stands out for its provider-first approach. "We've seen a whole class of entrepreneur therapists because we have unlocked the barriers to launch and grow your businesses," Adams remarked, adding that the startup has made it easier to accept insurance, "which means attracting way more patients."

The company, which also offers billing and claims software, said it powers more than 300,000 appointments per month, with over 26,000 providers delivering mental health care through its platform

The latest funding was led by Spark Capital with participation from existing backers Thrive Capital, Accel, and Andreessen Horowitz. New investor Health Care Service also contributed to the round. As part of the financing, Spark's general partner Will Reed will join Headway's board of directors.

The startup, which raised $70 million in Series B funding in 2021, will use the new capital to expand its network and increase marketing to help providers acquire new patients. Headway plans to soon make its platform available in all US states and will build products to help deliver care across state lines next year.

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