Psychological well being care entry and affordability proceed to be two elements that stop sufferers from looking for care. However Headway is out to vary that.
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The New York-based startup, based by Andrew Adams and Kevin Chan in 2019, is growing a medical health insurance advisory platform designed to attach sufferers with therapists, in addition to offering administrative help to therapists who don’t usually settle for insurance coverage.
Adams is aware of concerning the problem of discovering a therapist after transferring from California to New York, which was a driver for beginning Headway. He discovered that one in 4 individuals have treatable psychological well being points, however due to the value and the truth that 70 % of therapists don’t settle for insurance coverage, they don’t usually search care.
“We’re creating a brand new psychological well being system that’s rewired round software program for affordability,” Adams advised Crunchbase Information. “Insurance coverage administration complexities are constructed for medical, not one-person practices, so many therapists don’t need to tackle the burden of accepting insurance coverage.”
Fairly, Headway’s platform allows accepting insurance coverage from sufferers simpler in order that therapists can develop their enterprise, he added.
Headway closed on a $32 million Sequence B, led by Thrive, GV and Accel and a gaggle of founders from One Medical, Flatiron Health and Clover Health. The corporate beforehand raised a $26 million Sequence A and $4.5 million seed, Adams mentioned.
Psychological well being is a driver for all well being care, so the market of behavioral well being may finally be a trillion-dollar market, Adams mentioned. And, from an financial perspective, behavioral well being prices extra to deal with as a result of the individual could not have common checkups or take their remedy.
“Headway isn’t simply psychological well being. We deal with diabetes and most cancers as a result of we deal with despair for these people, which helps them to take their oral oncology remedy and their insulin,” he added. “It results in downstream impacts.”
The corporate can also be in a market that’s gaining consideration from buyers. We put collectively a listing of global startups working in mental health and located 400 that acquired venture-backed funding throughout the previous 5 years. In actual fact, buyers pumped $8.6 billion into these corporations throughout that time-frame, in keeping with Crunchbase information.
This yr, we coated a number of corporations within the psychological well being house that acquired funding, together with:
In the meantime, Headway is rising in its first market, New York, and helps tens of 1000’s of individuals entry therapists and quadrupled the variety of therapists accepting insurance coverage, Adams mentioned. Throughout the market, the corporate is working with the Metropolis of New York and its Metropolitan Transit Authority workers.
The corporate goals to make use of the brand new funding to develop throughout the USA, acquire traction with therapists and industrial insurers and so as to add to its 30-person workforce to satisfy all the new demand.
“We plan to scale each the group and new geographies, whereas additionally partnering with insurance coverage corporations,” Adams added. “We hope this offers people a possibility to handle their burning considerations and to unravel their psychological well being entry challenges.”
Function picture of Andrew Adams, co-founder and CEO of Headway, courtesy of Headway
Blogroll illustration: Dom Guzman