NEW YORK--(BUSINESS WIRE)--Headway, creator of the first software-enabled national network of therapists, today announced it has secured a $70 million Series B round of funding. Led by Andreessen Horowitz, with participation from Thrive, GV and Accel, the investment comes just 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.
Headway is making quality mental healthcare accessible and affordable across the United States. The demand for affordable mental healthcare is burgeoning, yet cost remains the biggest barrier to access. Headway is tackling the challenge by providing free software that seamlessly connects patients, therapists and insurance companies. 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. This drives up the cost of therapy, making it inaccessible to many Americans desperately seeking support.
“We are breaking the vicious cycle and building a new mental healthcare system that will render inaccessibility an anachronism,” said CEO and cofounder Andrew Adams. “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.”
Headway started in New York in April 2019 and has moved swiftly to:
- Enable 3,000+ therapists, psychologists and psychiatrists to accept insurance;
- Add more than 2,000 patients to the Headway platform each month to find great therapists who accept their insurance;
- Facilitate 300,000+ therapy appointments;
- Scale its team to 75+ employees
In recent months, Headway has expanded its reach to 10 additional states: New Jersey, Florida, North Carolina, Texas, Georgia, Michigan, Virginia, Washington, Illinois and Colorado. Net revenue has grown 9X, reflecting significant adoption of the platform by patients, therapists and insurance companies as demand for affordable mental healthcare has soared. Headway has built the infrastructure to connect all parties:
- Patients are at the core of Headway’s mission. 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.
- Therapists are empowered to grow their private practice and focus fully on their patients instead of paperwork. Headway handles the full process to join an insurance panel, and its free software offers full claim management support, payments and scheduling. With Headway, therapists no longer need to turn patients away because they do not accept their insurance.
- 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.
“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. “We’re incredibly excited to work alongside the Headway team.”
Headway will use the new capital to expand its team to more than 300 people as it works towards its goal of scaling to full national coverage. Headway recently added Cherry Miao, a former Partner at Accel, Headway’s lead seed investor, to its executive team as Head of Finance & Data.
“I’ve been fortunate to work with some of the world’s most influential startups, and know that being part of Headway’s meaningful mission, robust business model, and incredibly talented team is a once-in-a-lifetime opportunity. I’m thrilled to be helping rebuild America’s mental healthcare system for access and affordability,” said Miao.
Headway is building a new mental healthcare system, rewired for access and affordability, through software. Despite one in four people having a treatable mental health condition, the overwhelming majority don’t get the care they need because of high costs. Through its software-enabled network, Headway is connecting patients with therapists who accept insurance, helping providers to expand their practices, and individuals to finally find a therapist they can afford.