Headway, a software-enabled virtual national network of therapists, secured a $70 million Series B round of funding.
Andreessen Horowitz led the funding round with participation from Thrive, GV, and Accel. Including the latest funding round, Headway has raised $103 million to date at a valuation of $750 million.
Headway plans to use the new funds to expand its team and scale its network of therapists. Headway platform connects patients with therapists who accept insurance through its software-enabled network, helping providers expand their practices and individuals to find a therapist they can afford.
According to the company’s statement, nearly 70% of therapists do not accept insurance because of the administrative burden for solo practitioners, who comprise 85% of the mental healthcare market.
“We are breaking the vicious cycle and building a new mental healthcare system that will render inaccessibility an anachronism,” said CEO and co-founder Andrew Adams.
Andrew Adams added: “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.”
“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,” said Scott Kupor, Managing Partner at Andreessen Horowitz, who is also joining Headway’s Board of Directors.
Headway has built the software infrastructure to connect all parties. Through the Headway platform, 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 will owe with their in-network insurance plan.
For Therapists, the Headway platform handles the complete process to join an insurance panel, and its software offers full claim management support, payments, and scheduling. Insurance companies partner with Headway to unlock behavioral health access and quality for their patient networks. Patients can book an appointment directly with a therapist on Headway within five days, compared to the 30-day average with an insurance directory.
Telehealth companies raised $2.4 billion in Q1 2021 compared to $1.2 billion raised in Q4 2020, a 100% increase in QoQ. Year-over-year funding increased by 154% in Q1 2021 compared to $930 million raised in Q1 2020, according to the recently released Mercom’s Q1 2021 Digital Health Funding and M&A Report.