Headway, a US-based mental health startup, is reportedly raising a new funding round that will value the company at $2.3 billion, nearly doubling its valuation from a year earlier. The financing round is expected to include approximately $100 million led by Spark Capital, alongside participation from existing investors Thrive Capital, Accel, Andreessen Horowitz, and Global Founders Capital.

Headway addresses a significant issue: one in four Americans have a treatable mental health condition, but most do not receive care, primarily due to cost. An estimated 70% of therapists do not accept insurance due to administrative burdens, forcing individuals to pay out-of-pocket prices they cannot afford. Headway is building the first asset-free national network of therapists who accept insurance, aiding therapists in building their practices and helping individuals find affordable, quality care.

The idea for Headway was born when Andrew Adams moved to New York City from California and struggled to find a therapist who accepted his insurance. Realizing he was not alone, Adams set out to create a platform connecting those seeking therapy with licensed therapists who accept insurance. In 2019, he co-founded Headway with Jake Sussman, Dan Ross, and Kevin Chan, aiming to build a new mental healthcare system focused on access and affordability.

Headway connects people with therapists and handles tasks such as looking up benefits and booking appointments. The company does not charge patients or therapists for its search service; instead, it is paid by insurance companies, making it free for users. Headway takes a commission from insurance providers, enabling wider access to more therapists for their policies. For each appointment, Headway pays providers upfront and takes a cut of the reimbursements made by insurance companies.

Last year, Headway expanded its service to all 50 states and partnered with more than 25 insurance plans. The startup, which has over 500 employees, currently hosts around 33,000 providers on its platform.