US-based healthcare technology firm Headway has received $125m in a Series C investment round, as reported by Reuters.

The funding round was led by Spark Capital and has valued Headway at $1bn.

The company's current investors, including Accel, Thrive Capital, Andreessen Horowitz and Health Care Service Corporation, also joined the fundraise.

As part of the deal, Spark investor Will Reed secured a seat on the Headway board.

Reed said: “We saw Headway emerged 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.”

Headway plans to use the funding to expand its therapist network and enhance its marketing efforts to help therapists connect with patients.

The company’s platform also provides billing and claims software for doctors.

Headway CEO Andrew Adams said: “We've seen a whole class of entrepreneur therapists because we have unlocked the barriers to launch and grow your businesses.

“We've made accepting insurance easier, which means attracting way more patients.”

Reuters reported that the Covid-19 pandemic has caused a rise in the number of patients seeking mental health services, making the sector attractive to investors.

Based in New York, Headway aims to connect patients with therapists and psychiatrists who can provide care covered by insurance.

The company makes money by receiving a share of the payments given to therapists on its platform by insurance companies.

Earlier this year, it added Dr Nicole Christian-Braithwaite and Matt Hackett to its team.

Dr Christian-Braithwaite has been tasked with leading medical and clinical strategy, which will involve working with Headway's payer partners to ensure patients can receive good care while reducing costs.

Hackett was appointed as the company's chief strategy officer and head of product. In this role, he will manage Headway's product, design and research aspects.