In a significant stride towards transforming the landscape of mental healthcare accessibility, New York-based startup Headway recently closed a monumental $125 million Series C funding round. This achievement not only propels the company’s total funding to an impressive $225 million but also catapults its valuation to $1 billion, marking its entry into the coveted realm of unicorns.
Leading the Series C round was Spark Capital, with notable participation from Thrive Capital, Accel, Andreessen Horowitz, and Health Care Service Corporation.
Addressing America’s Mental Health Crisis
Headway, founded in 2017, is on a mission to tackle the escalating mental health crisis in the United States. Despite the growing awareness of mental health issues, a significant portion of the population still struggles to access the care they urgently require.

During the inception of Headway, the founding team encountered the formidable obstacles that mental health providers encounter when attempting to offer in-network care to patients through insurance companies. Adams emphasized that the core issue lies not in the supply of providers but in the lack of access to those providers who already offer excellent care but face insurmountable barriers to accepting insurance.
For many therapists, dealing with insurance is a cumbersome administrative burden that they cannot feasibly manage. These professionals, often operating as small practices, lack the resources to hire administrative staff to handle tasks such as credentialing, billing, insurance paperwork, claims submission, and compliance obligations.
Adams elucidated the problem that Headway seeks to solve: “That’s exactly the challenge we’re solving for. Headway is building a new mental health care system that every person can access by making it easy for therapists to take insurance and scale their practice.”
The Technology-Powered Solution
Headway’s innovative technology platform acts as a bridge, simplifying the process for therapists to accept insurance and significantly expanding the reach of mental healthcare services. This platform efficiently manages tasks such as examining insurance benefits, filing claims, overseeing the revenue cycle, and ensuring compliance.

Patients seeking in-network providers can visit Headway’s website and input their location and insurance details. The platform offers options for both in-person and virtual care, with the added ability to filter provider search results based on criteria such as race, ethnicity, language, and sexuality. Remarkably, individuals typically secure their first appointment within just five days of booking.
Benefits Beyond Patients and Providers
Headway’s impact extends beyond patients and providers, benefiting payers as well. The integrated technology platform offers payers valuable insights into whether their members are receiving care, along with the assurance that members are progressing towards better health outcomes.

For instance, BCBS Texas recently reported a 5% reduction in inpatient acute behavioral health admissions since 2021, a change attributed to Headway’s ability to connect members to outpatient behavioral health care within 48 hours.
A Differentiated Approach
When asked how Headway distinguishes itself from other platforms connecting individuals with in-network providers, CEO Andrew Adams emphasized the company’s status as the largest network of providers accepting insurance. He stated, “Headway is the best option for payers looking to expand mental health access for their members. It’s the best option for providers who are eager for competitive rates and support to grow a successful practice. And it’s the best option for patients looking for a diverse, high-quality group of therapists to choose from to get the best possible care.”
Expanding Access Nationwide
Currently operational in 44 states and Washington, D.C., Headway has ambitious plans for nationwide coverage. By the end of the year, the platform is set to provide its valuable services in all 50 states, further enhancing its impact on mental healthcare accessibility.
In a world where mental health concerns continue to rise, Headway’s commitment to removing barriers and enhancing accessibility to mental healthcare is both commendable and transformative. Its impressive growth and innovative approach reaffirm the importance of addressing mental health needs in society.
TL;DR
Headway, a New York-based startup, has secured $125 million in Series C funding, raising its total funding to $225 million and reaching a valuation of $1 billion. The company’s mission is to improve access to mental healthcare in the United States. By simplifying the process for therapists to accept insurance, Headway has become the largest network of providers taking insurance, connecting patients to mental health professionals. The platform benefits not only patients and providers but also payers by providing valuable insights into members’ care. Headway aims to expand its reach to all 50 states by the end of the year, further enhancing mental healthcare accessibility.
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