According to Reuters, Headway, a healthcare software business that links clients with nearby therapists, has acquired $125 million in Series C funding.
With involvement from current investors such as Thrive Capital, Accel, and Andreessen Horowitz, the financing round, which valued the company at $1 billion, was headed by Spark Capital. Health Care Service Corporation, an insurance firm, also joined the discussion.
Headway’s platform, which is based in New York, links patients with therapists and psychiatrists who can offer care that is reimbursed by insurance. Additionally, it gives providers billing and claims software.
Headway’s CEO, Andrew Adams, claimed the firm distinguishes out for its provider-first philosophy. The business generates revenue by taking a percentage of the insurance company payments that therapists using its platform receive.
“Since we have removed the obstacles preventing you from starting and expanding your firms, we have witnessed a whole class of entrepreneur therapists. We’ve made it simpler to accept insurance, which has helped us draw in a lot more patients,” Adams said in an interview.
In order to assist providers on the platform in acquiring patients, the business intends to utilise the funds to invest in growing its network and stepping up marketing. With 26,000 doctors engaging in-network with 19 insurance plans, the company claims to presently run one of the largest therapist and psychiatrist networks in the United States.
More people sought out mental health assistance to cope with stress and burnout as a result of the pandemic. The industry garnered billions of dollars in funding from venture capitalists as people searched for simpler ways to receive treatment.
Will Reed, an investor at Spark who is joining the Headway board, stated that “we saw Headway emerge as this one piece of technology that supports providers, patients, and payers, bringing together all these fragmented systems to finally deliver quality and accessible mental health care.”
Additionally, in 2021, Headway completed its $70 million Series B investment round, increasing its total money raised since its founding to $100 million. Behavioral Health Business has contacted the startup for comment, but it has not yet returned the favour.
The Headway has rapidly grown since its debut in 2017. It now collaborates with a number of sizable players, including Aetna, Anthem Blue Cross and Blue Shield, United, Cigna, Oscar, Oxford, and several local Blues plans.
