US-based mental health startup Headway has secured $100m in a Series D funding round, aiming to expand its services to Medicare Advantage and Medicaid.
This investment, led by Spark Capital, has more than doubled Headway’s valuation to $2.3bn.
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The funding will accelerate the development of Headway’s platform, simplifying operations for providers to focus on clinical care.
Other investors in the Series D fundraise included Thrive Capital, Accel, Andreessen Horowitz, and Forerunner Ventures.
The capital injection will enable Headway to address the need for mental health services among over 100 million Americans covered by Medicare Advantage and Medicaid, who often face significant barriers to care.
A report from the US Department of Health and Human Services highlights the access challenges for those living with mental illness, with one in three Medicaid beneficiaries and one in four Medicare beneficiaries affected by a shortage of mental health providers.
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By GlobalDataHeadway said that its clinicians aim to address these gaps.
Headway has already initiated collaborations with Medicare Advantage plans in certain states, with thousands of clinicians participating.
The company expects to be operational with Medicare Advantage in 51 markets by the end of the year and plans to launch with Medicaid in 2025.
The recent funding will allow more clients to access care through Headway, simplifying credentialing and compliance processes for providers.
Furthermore, the funding will facilitate the creation of tools and products to expedite credentialing timelines and simplify compliance requirements, enabling providers to maintain clinical autonomy while delivering care.
LMFT, an early adopter of Headway’s Medicare Advantage expansion, Andre Maxie said: “Headway has made working with Medicare easier for me through enrollment, onboarding and navigating compliance expectations. I can truly say that I would not be accepting Medicare clients without Headway.
“Accepting Medicare is important to me because it allows me to reach a population that has been historically underserved.”
Founded in 2019 and headquartered in New York, Headway powers over 500,000 appointments per month and is building the asset-free national network of therapists who accept insurance.
The company streamlines various processes, including onboarding, clinical training, credentialing, scheduling, and billing.
