Axios Pro: Health Tech Deals

February 28, 2023

Axios Pro Exclusive Content

It's Tuesday, Health Tech readers.

⌚ Situational awareness: Continuing to follow Apple's well-trodden tracks, Google today launched fall detection on its Pixel Watch. (Erin wonders: But can you ski with it?)

πŸ¦„ 1 big thing: Headway scores $1 billion valuation

Illustration: Sarah Grillo/Axios

Skyrocketing demand for therapy and a dearth of insurance-covered options are propelling mental health startups to unicorn status β€” even in a market that is making unicorns increasingly rare, Erin writes.

Driving the news: Hybrid mental health therapy network operator Headway is in talks to raise $100 million in fresh funds at a $1 billion valuation, per Bloomberg.

  • Investors would include Spark Capital and insiders Thrive Capital, Andreessen Horowitz and Accel.
  • Headway last raised $70 million in a 2021 Series B round at a $750 million valuation.

Be smart: An estimated 45% of psychiatrists don't accept any form of insurance, and most that do take coverage from only a narrow set of plans.

How it works: Headway operates a network of covered therapists in 15 states.

  • Providers charge $20 to $50 for in-person and online sessions and accept insurance from payers including Aetna, Anthem, Cigna, Oxford, UnitedHealthcare and Oscar.

Erin's thought bubble: Headway's three-pronged strategy β€” tools for patients, providers and payers β€” could give it a leg up over startups offering just one component.

  • What remains to be seen is whether it can scale while generating positive outcomes for its three constituents.

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