(Bloomberg) -- Mental health startup Headway is raising a new funding round valuing the company at $2.3 billion, according to people familiar with the matter, roughly doubling its valuation from a year earlier.
The financing brings in about $100 million for Headway, which connects people with therapists and can handle tasks like looking up benefits and booking appointments. The round is being led by Spark Capital. The company’s existing investors include Thrive Capital, Accel, Andreessen Horowitz and Global Founders Capital.
Headway declined to comment.
Late last year, the startup said it had expanded its service to all 50 states and was working with more than 25 insurance plans. Headway, which has more than 500 employees, also said that there are about 33,000 providers on its platform.
The company was founded in 2019 after its Chief Executive Officer Andrew Adams struggled to find a therapist that accepted his insurance. Digital mental health services surged in popularity during the pandemic, as many people experienced traumatic events or went through lockdowns.
In a recent blog post, the company said, “In a post-pandemic world, it’s more important than ever to support people in getting care in the best way for them.”
Headway’s rapidly climbing valuation is notable, particularly during a difficult period for startups that aren’t exclusively focused on artificial intelligence. Total venture funding is still well below its highs in 2021, and AI companies are vacuuming up much of that investment.
The startup previously raised about $100 million in a funding round Bloomberg reported on early last year. At the time, the company’s valuation was more than $1 billion.
(Adds Thrive Capital to list of existing investors in the second paragraph.)
©2024 Bloomberg L.P.
