Mental-health company Headway is expected to be valued at more than $1 billion in a new funding round, according to people familiar with the matter.
(Bloomberg) — Mental-health company Headway is expected to be valued at more than $1 billion in a new funding round, according to people familiar with the matter.
The New York-based therapy-referral business is in talks to raise about $100 million from Spark Capital, Thrive Capital, Andreessen Horowitz and Accel, said the people, who asked not to be identified because the information is private.
A representative for Headway didn’t immediately respond to requests for comment.
Headway was valued at a $770 million after a funding round in 2021, according to data provider PitchBook.
At a time when fewer startups are reaching the coveted “unicorn” status of a $1 billion valuation, Headway’s move shows investors still see opportunities in categories like mental health. Difficulties surrounding the coronavirus pandemic led to growing consumer interest and awareness about the importance of seeking outside help for personal struggles.
Headway, now available in 15 states, markets itself as trying to make therapy more affordable. The company is continuing to build a network of therapists who accept insurance, whether for in-person visits or online.
The company currently works with insurers such as Aetna, Anthem, Cigna, Oxford, UnitedHealthcare and Oscar. Headway’s providers tend to charge $20 to $50 a session rather than the $200 to $300 it can often cost, according to the company’s website.
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