Two Chairs: Behavioral Health Startup Raises $72M in Series C Funding

Two Chairs: Behavioral Health Startup Raises $72M in Series C Funding

By
Santiago Delgado
2 min read

In 2017, Two Chairs was founded by Alex Katz as an in-person therapy for behavioral health, but shifted to remote treatment due to COVID-19, resulting in significant growth and expanded revenue. Recently, the company received a Series C funding of $72 million, bringing their total funding to $103 million. Two Chairs employs over 500 therapists, using a remote-first treatment model, differentiating itself with a focus on measurement-based care. They plan to use the funding to hire more therapists and expand into new states. Katz expressed skepticism about AI replacing mental health professionals, emphasizing the importance of emotional and human-driven therapy.

Key Takeaways

  • Two Chairs experienced significant growth and increased revenue after shifting to remote treatment during COVID-19.
  • The company secured a Series C funding of $72 million, bringing their total funding to $103 million, which will be used to hire more therapists and improve technology.
  • Two Chairs differentiates itself by employing and training a "vast majority" of its therapists in measurement-based care, addressing the shortage of mental health professionals in the U.S.
  • It offers services for the price of a co-pay to Aetna and Kaiser Permanente health insurance holders, and charges $226 per session for other individuals.
  • Despite the rise of digital platforms in finding therapists, Two Chairs aims to solve the challenge of finding the right therapists and high-quality care by emphasizing the value of effective therapy provided by great therapists.

Analysis

The rapid shift to remote treatment during COVID-19 propelled Two Chairs into significant growth and expanded revenue, leading to a Series C funding of $72 million. This will enable the company to hire more therapists and enhance its technology. Two Chairs' emphasis on measurement-based care and its pricing strategy for health insurance holders signal a robust positioning in the mental health sector. The skepticism about AI replacing human-driven therapy indicates a commitment to emotional and human-driven treatment. Short-term consequences include expanded services and employee growth, while the long-term impact could see Two Chairs becoming a key player in the mental health industry, addressing the shortage of professionals in the U.S. These developments will likely impact mental health organizations, insurance providers, and technology companies.

Did You Know?

  • Two Chairs differentiates itself by employing and training a "vast majority" of its therapists in measurement-based care, addressing the shortage of mental health professionals in the U.S.
  • It offers services for the price of a co-pay to Aetna and Kaiser Permanente health insurance holders, and charges $226 per session for other individuals.
  • Despite the rise of digital platforms in finding therapists, Two Chairs aims to solve the challenge of finding the right therapists and high-quality care by emphasizing the value of effective therapy provided by great therapists.

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