Headway raises $70 million
Headway, “creator of the first software-enabled national network of therapists,” secured $70 million in Series B funding. Led by Andreessen Horowitz, with participation from Thrive, GV and Accel, the investment comes six months after Headway’s Series A. The new capital brings total funding to date to $103 million and gives Headway a new valuation of $750 million.
Founded in 2017, Headway is on a mission to make mental healthcare accessible and affordable across the United States. The startup is tackling the challenge by providing free software that connects patients, therapists and insurance companies. According to Headway, nearly 70% of therapists do not accept insurance because of the administrative burden for solo practitioners, who comprise 85% of the mental healthcare market today. The time commitment required for processing claims and paperwork reduces the number of patients they can see and for the most part, reimbursement rates have yet to reflect the importance of behavioral care on one’s physical health.
Through Headway, prospective patients can search for a therapist who matches their preferences and book directly on Headway’s website, all while having a clear view into what they’ll owe with their in-network insurance plan. From there, the Headway team supports patients with questions along the way. For therapists, Headway handles the full process to join an insurance panel, and its free software offers full claim management support, payments and scheduling.
Since going live in April 2019, Headway enabled 3,000+ therapists, psychologists and psychiatrists to accept insurance, added more than 2,000 patients to the platform each month, and facilitated over 300k therapy appointments.
“We are breaking the vicious cycle and building a new mental healthcare system that will render inaccessibility an anachronism. We are proud of what we have built in just over a year, and humbled by the grateful responses we have received from patients, therapists and insurance companies. We have created a better way for accessing mental healthcare and are working tirelessly to bring quality care to every American that needs it. State by state, we are committed to offering our solution to help solve the mental health affordability crisis. We’re just getting started.” – CEO and cofounder Andrew Adams.
“By getting the mental health provider community on the same page with insurance companies for the first time, Headway unlocks affordable mental healthcare for millions of Americans. We’re incredibly excited to work alongside the Headway team.” – Scott Kupor, Managing Partner at Andreessen Horowitz.