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Two Chairs Raises $72M Series C to Expand Therapist Network

Two Chairs Raises $72M Series C to Expand Therapist Network

Founded in 2017 by Alex Katz, Two chairs Has been a proponent of personal therapy for effective behavioral health treatment. Using its proprietary matching algorithm, the startup initially focused on connecting clients with therapists at its stylishly designed clinics in the San Francisco Bay Area. However, with the onset of the COVID-19 pandemic, the two chairs changed their approach to accommodate remote therapy, leveraging technology to facilitate virtual sessions.

The transition to a remote-first treatment model has fueled the company's growth, allowing it to scale more quickly 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. The company's revenue has grown eightfold in the last three years.

In its latest funding round, Two Chairs secured a total of $72 million in equity and debt financing led by Emplo and Fifth Down Capital, with participation from BridgeBank. 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 physicians, as opposed to contracting with them. This approach allows the company to select and train high-quality physicians, emphasizing measurement-based care (MBC) to improve outcomes and reduce costs.

While online therapy platforms such as Talkspace and BetterHelp offer greater 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, furthering the two-chair mission to provide high-quality care.

With its latest funding, Two Chairs plans to expand its physician network, enter new states and expand its technology. The company offers its services at a co-pay price for Aetna and Kaiser Permanente health insurance holders, while charging $226 per session for others.

As for AI's potential to replace mental health professionals, Katz is skeptical, emphasizing the human-centered nature of therapy. They believe that the emotional complexity of the job necessitates the presence of a skilled therapist, which underscores the continued importance of personal care in behavioral health treatment.

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