Mental health platform Headway announced it closed a $125 million Series C funding round led by Spark Capital, boosting its valuation to more than $1 billion.

Existing investors a16z, Accel and Thrive participated in the round, as well as new strategic investors led by Health Care Service Corp. 

Will Reed, general partner at Spark Capital, will join the company's board of directors.  

WHAT THEY DO

Headway's platform connects patients to in-network therapists and private practice therapists to insurance companies.

Through the company's free tool, users enter their health plan information and can search for in-network therapists. The platform also connects therapists to an insurance panel and helps with booking, billing and other back-end tasks.

The new investment will help Headway advance its technology and its plans to expand the availability of its platform in all 50 states in the U.S. and the District of Columbia. The company also said it is building products to help providers work across state lines in 2024. 

"I founded Headway after I couldn’t find a therapist who accepted my insurance – a problem millions of Americans face each year," Andrew Adams, founder and CEO of Headway, said in a statement. "This funding will enable that nationwide expansion and allow us to further invest in the partnerships and tools that will help providers grow their practice."

MARKET SNAPSHOT  

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

Other companies in the tech-enabled mental health space include Meru Health, a digital mental platform for employees; Happify Health, a platform for mental health and disease management programs; meditation and mental health company Headspace Health; and meditation app Calm, which last year revealed a new mental health product offered through traditional healthcare industry players like providers, payers and self-insured employers.