Headway scores $100M, more than doubling its valuation to $2.3B

New York-based psychological well being platform Headway introduced it secured $100 million in Collection D funding, greater than doubling its valuation to $2.3 billion. 

Spark Capital led the spherical, joined by current traders a16z, Thrive Capital and Accel, and new investor Forerunner Ventures.

The corporate additionally introduced its plans to increase its providers for people with Medicare Benefit and Medicaid insurance coverage and extra industrial plans.

WHAT IT DOES

By means of Headway’s platform, customers enter their well being plan data and seek for in-network and private-practice therapists.

The platform additionally connects therapists to an insurance coverage panel and helps with reserving, billing and different back-end duties.

Headway will use the funds to hurry up product growth to simplify non-public follow operations for clinicians, together with constructing instruments that speed up Medicare and Medicaid credentialing timelines and compliance obligations. 

“The corporate is uniquely positioned to deliver collectively suppliers, sufferers and payers and unite a fragmented system, and Spark Capital is happy to additional assist its mission and progress,” Will Reed, basic companion at Spark Capital and Headway board member, stated in a press release.

MARKET SNAPSHOT

Based on Rock Well being’s H1 2024 digital well being funding report launched earlier this month, psychological well being topped the listing of highest-funded medical indications throughout the digital well being sector within the first half of the 12 months, with $682 million raised. 

Headway’s latest funding comes only one 12 months after the corporate closed a $125 million Collection C spherical, which introduced it to unicorn standing.

The corporate raised $70 million in Collection B funding in 2021, six months after scoring $26 million in a Collection A spherical.

In December, Headway introduced it might increase to all 50 states and the District of Columbia, fueled by collaborations with Evernorth Well being Providers, Blue Cross Blue Protect of Massachusetts and Blue Cross Blue Protect of Texas.

Different firms providing digital psychological well being providers embody on-line remedy firm BetterHelp, pediatric digital behavioral well being firm Brightline, teletherapy firm Talkspace and digital psychological healthcare supplier Iris Telehealth.