Headway Secures $70 Million for Its Software-Enabled Therapist Network

By McKenzie Carpenter Wednesday, May 5, 2021

Headway, a mental health startup company, announced it gained $70 million to expand its business.

Headway CEO and co-founder Andrew Adams.

What Is Headway?

With the mission of “building a new mental healthcare system,” Headway is a New York City-based startup company that created a software system that connects patients with licensed therapists who accept insurance. Founded in 2019, the business developed a system that not only helps therapists expand their mental health practices but also allows individuals to find affordable mental health professionals.

According to the startup company, one in four American adults have a treatable mental health condition but do not seek help due to high prices. In conjunction with that, the business claims 70% of therapists don’t accept insurance, making mental healthcare even harder to access and afford.

With more than 4,000 mental health professionals on the platform, Headway states it has facilitated over 346,000 appointments and served more than 25,000 patients. Patients are not billed from Headway until after their sessions are completed.

The startup company has partnered with a wide variety of insurance companies, such as Aetna, United Healthcare, Cigna, Blue Cross Blue Shield, and many others. In addition, services provided by the business are available in 11 states across the continental United States (US).

$70 Million Series B

Headway announced in a press release that it raised $70 million in a Series B financing round led by Andreessen Horowitz. Thrive Capital, GV, and Accel also participated in this funding round. To date, the startup company has raised $103 million. Additionally, the Series B round valued the business at $750 million.

CEO and co-founder of Headway, Andrew Adams, said in a statement, “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...”

In a blog post addressing the new financing, the Headway team stated that over the last year, the startup company has grown in net revenue nine times. Furthermore, the Headway team has increased five times to more than 75 members. With the new capital, the business plans to expand its team to more than 300 members. According to the company, Headway has more than 2,000 patients joining the platform each month.

The business is working toward the goal of scaling to full nationwide coverage. Moreover, the startup company would like to explore new relationships with insurance companies. The new funding will help Headway achieve all of these goals.

This Series B comes six months after Headway had already raised $26 million in a Series A financing round.

The Industry

Headway is just one startup that is attempting to positively impact the mental healthcare market. Other competitors to Headway in this space are startups like Ginger, Lyra Health, and Joon. Startup Savant reported on Joon, a teletherapy provider for teens and young adults, in December 2020.

Grand View Research reported the global behavioral healthcare software and services market size was valued at $2.1 billion in 2019 and is projected to grow at a CAGR of 11.1% from 2020 to 2027.

About the Author

Headshot for author McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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