New York-based mental health platform Headway announced it secured $100 million in Series D funding, more than doubling its valuation to $2.3 billion. 

Spark Capital led the round, joined by existing investors a16z, Thrive Capital and Accel, and new investor Forerunner Ventures.

The company also announced its plans to expand its services for individuals with Medicare Advantage and Medicaid insurance and additional commercial plans.

WHAT IT DOES

Through Headway's platform, users enter their health plan information and search for in-network and private-practice therapists.

The platform also connects therapists to an insurance panel and helps with booking, billing and other back-end tasks.

Headway will use the funds to speed up product development to simplify private practice operations for clinicians, including building tools that accelerate Medicare and Medicaid credentialing timelines and compliance obligations. 

"The company is uniquely positioned to bring together providers, patients and payers and unite a fragmented system, and Spark Capital is excited to further support its mission and growth," Will Reed, general partner at Spark Capital and Headway board member, said in a statement.

MARKET SNAPSHOT

According to Rock Health's H1 2024 digital health funding report released earlier this month, mental health topped the list of highest-funded clinical indications within the digital health sector in the first half of the year, with $682 million raised. 

Headway's recent funding comes just one year after the company closed a $125 million Series C round, which brought it to unicorn status.

The company raised $70 million in Series B funding in 2021, six months after scoring $26 million in a Series A round.

In December, Headway announced it would expand to all 50 states and the District of Columbia, fueled by collaborations with Evernorth Health Services, Blue Cross Blue Shield of Massachusetts and Blue Cross Blue Shield of Texas.

Other companies offering virtual mental health services include online therapy company BetterHelp, pediatric virtual behavioral health company Brightline, teletherapy company Talkspace and virtual mental healthcare provider Iris Telehealth.