- New York-based therapy marketplace company Headway announced that it has raised $26 million in Series A funding. These are the details.
New York-based therapy marketplace company Headway announced that it has raised $26 million in Series A funding. This round of funding was led by Thrive and GV with participation from existing investors at Accel, GFC, and IA Ventures. Plus the company also received angel investment from the founders of healthcare companies like One Medical, Flatiron Health, and Clover Health.
Andrew Adams, Co-Founder & CEO at Headway, said that he tried to find a therapist after moving to NYC in 2015. One of the reasons he couldn’t find a therapist he could afford is because 70% of them do not accept insurance. And one of the problems is that the insurance industry was not built for therapists.
“It was built for huge hospital systems who employ entire departments to deal with the administrative burden of insurance. As individual practitioners, therapists don’t have the bandwidth to support taking insurance,” said Adams in a company blog post.
Headway — which was founded by Adams, Jake Sussman, Dan Ross, and Kevin Chan in 2019 — is aiming to solve this problem by building the first national network of therapists who accept insurance. Headway’s free software for therapists is able to handle the work to accept insurance. And two out of three providers that you will find on their platform do not accept insurance anywhere else. And Headway is helping tens of thousands of patients who would otherwise be unable to find affordable mental healthcare.