Headway is expected to get a new $100 million investment from Spark Capital, Thrive Capital, Andreessen Horowitz and Accel.
That’s according to a new report from Bloomberg News, citing sources “familiar with the matter.” The new infusion of capital would put Headway’s valuation at more than $1 billion, making Headway the first digital behavioral health unicorn of 2023.
The New York-based startup created a digital platform that is designed to help connect patients to mental health providers in their insurance network. Headway also supplies behavioral health providers with a suite of free technology products that help remove administrative burdens. The company makes its money from commissions from the insurance providers it works with.
Headway closed its $70 million Series B funding round in 2021, bringing its total raise to $100 million since launching. The startup has not yet responded to requests for comment from Behavioral Health Business.
Since it launched in 2017, the Headway has quickly expanded. It now partners with several large payers, including Aetna, Anthem Blue Cross and Blue Shield, United, Cigna, Oscar, Oxford and a number of regional Blues plans.
In August, the company announced a new partnership with CareFirst BlueCross BlueShield to help the latter’s members find in-network behavioral health providers. Patients can use Headway’s service to see provider availability, treatment and demographics.
Headway has also expanded its geographical footprint. It announced its expansion into California in October, marking its 15th state market.
As the company grows, it has brought on new leadership team members. In January, it announced Matt Hackett, former interim COO for digital events company Hopin, would join the team as chief strategy officer and head of product. It also announced Dr. Nicole Christian-Braithwaite would serve as its head of medical and clinical strategy.
Although Headway appears to be gaining investor attention, digital behavioral health funding is trending downward. According to Rock Health, investors poured $2.1 billion into behavioral health companies in 2022, a 56% decrease from the $4.8 billion raised in 2021.
Headway isn’t the only company supplying providers with a tech stack for their business.
Alma, a startup focused on supporting small mental health practices by providing teletherapy software and automated billing and scheduling tools, raised $130 million in August. This brought the company’s total raise to more than $220 million.