Founded in 2017 by Alex Katz, Two Chairs has been a proponent of in-person therapy for effective behavioral health treatment. Using its proprietary matching algorithm, the startup initially focused on connecting clients with therapists in its stylishly designed clinics across the San Francisco Bay Area. However, with the onset of the COVID-19 pandemic, Two Chairs shifted its approach to accommodate remote therapy, leveraging technology to facilitate virtual sessions.
The transition to a remote-first treatment model has propelled the company’s growth, allowing it to scale more rapidly and cost-effectively. Despite maintaining brick-and-mortar locations in California, Washington, and Florida, the majority of Two Chairs’ 500+ therapists now offer virtual sessions. Over the past three years, the company has seen an eight-fold increase in revenue.
In its latest funding round, Two Chairs secured a total of $72 million in equity and debt financing, led by Amplo and Fifth Down Capital, with participation from Bridge Bank. This brings the total funding raised by Two Chairs to $103 million, with Amplo also leading the company’s Series B round in August 2019.
Two Chairs distinguishes itself from other virtual behavioral health platforms by directly employing the “vast majority” of its therapists, as opposed to contracting with clinicians. This approach allows the company to select and train high-quality therapists, emphasizing measurement-based care (MBC) to improve outcomes and reduce costs.
While online therapy platforms like Talkspace and BetterHelp offer broader access to mental health services, Katz emphasizes the importance of quality care and therapist selection. Despite the increasing availability of remote therapy, finding the right therapist remains a challenge, driving Two Chairs’ mission to provide high-quality care.
With its latest funding, Two Chairs plans to expand its therapist network, enter new states, and enhance its technology. The company offers its services at the cost of a co-pay for Aetna and Kaiser Permanente health insurance holders, while charging $226 per session for other individuals.
Regarding the potential for AI to replace mental health professionals, Katz remains skeptical, emphasizing the human-centric nature of therapy. He believes that the emotional complexity of the job necessitates the presence of a skilled therapist, underscoring the ongoing importance of personalized care in behavioral health treatment.
