In the dawn of 2017, Alex Katz envisioned a realm where personal touch met therapeutic healing. His creation, Two Chairs, arose with a belief that face-to-face encounters were the pinnacle of effective behavioral health treatment. Embracing a blend of cutting-edge technology and human connection, the startup launched with a unique matching algorithm to curate the finest therapists. Each session unfolded within elegantly designed clinics nestled across the San Francisco Bay Area.
Yet, as the world spiraled into the digital age with the onset of COVID-19, Two Chairs faced a pivotal crossroads. The necessity of remote interaction redefined their approach. Although the startup maintains at least one physical location in each state it serves—California, Washington, and Florida—the majority of its over 500 therapists now engage with clients virtually.
Remote Therapy: A New Paradigm
The shift to a remote-first model has accelerated Two Chairs’ growth, offering a cost-effective alternative to its original in-person strategy. This transformation has catapulted the company’s revenue to new heights, expanding eightfold over the past three years. The recent announcement of a $72 million Series C funding round, led by Amplo and Fifth Down Capital, further propels Two Chairs into the spotlight. With this new influx, the company’s total funding reaches $103 million, including contributions from Bridge Bank’s debt portion and Amplo’s previous Series B investment.
The Evolution of Therapy Startups
Two Chairs joins a wave of therapy startups securing significant investments. Last week, Grow Therapy, a triadic mental health platform, secured $88 million in a Series C round spearheaded by Sequoia. Katz distinguishes Two Chairs from competitors like Talkspace and BetterHelp through its employment model. Unlike most, Two Chairs hires its therapists directly, fostering an environment of consistency and high quality. This employment approach allows for rigorous training in measurement-based care (MBC), a practice that promises enhanced outcomes by assessing patient progress with standardized metrics.
Navigating the Future of Remote Therapy
The rise of remote therapy addresses the shortage of mental health professionals in the U.S., yet Katz acknowledges that online platforms are not a cure-all. “Finding the right therapist and achieving truly high-quality care remains a challenge,” he reflects. The demand for mental health services continues to outpace supply, underscoring the need for innovation and expansion.
With the fresh capital infusion, Two Chairs plans to bolster its team, broaden its geographical reach, and refine its technology. Currently, services are accessible at the co-pay rate for Aetna and Kaiser Permanente members, while other individuals are charged $226 per session.
The Role of AI in Mental Health
As the conversation turns to the potential for AI to replace mental health professionals, Katz remains cautious. The essence of therapy is deeply human and emotionally nuanced, a realm where AI’s presence seems distant. “A great therapist in the room is irreplaceable,” he asserts, underscoring the irreplaceable value of human connection in therapy.
In this evolving landscape, Two Chairs stands as a beacon of progress, blending innovation with the timeless need for human empathy in mental health care.
