Headway, a New York-based software platform that helps therapists accept insurance and helps patients find those therapists, raised $26 million in Series A funding led by Thrive Capital.
Why it matters: Many therapists don't take insurance because of low reimbursement rates, which has built a colossal barrier to mental health access. Headway's software doesn't quite make up the difference, but narrows it significantly by automating administrative tasks like looking up benefits, credentialing, and appointment booking. The cost is paid by insurers, not by patients or providers.
- Other investors include GV and return backers Accel, GFC and IA Ventures.
The bottom line: "The defining problem in this industry is access. When I moved to New York I tried to find a therapist who took insurance, so I could afford to see them, but I totally failed. It's not at all a problem unique to me," Andrew Adams, CEO of Headway, told Axios.
