When Alex Katz founded Two Chairs in 2017, he firmly believed that in-person therapy is the most effective for behavioral health.
Two Chairs used technology — a proprietary matching algorithm — to find the best possible therapists for its clients, but treatments took place primarily inside one of the startup’s stylishly designed clinics in prime locations throughout the San Francisco Bay Area.
However, with the onset of COVID-19, the company had to pivot and adapt to a remote-first treatment model. While it still maintains physical locations in California, Washington, and Florida, the majority of Two Chairs’ therapists now provide virtual sessions.
This shift to remote therapy has significantly contributed to the company’s rapid growth, with revenue expanding eight-fold over the last three years.
Recently, Two Chairs announced a $72 million Series C funding round led by Amplo and Fifth Down Capital, bringing their total funding to $103 million. The company’s approach to therapy sets it apart from competitors like Talkspace and BetterHelp by employing the majority of its therapists rather than contracting with them.
The availability of remote therapy options, including those from Two Chairs, is helping address the shortage of mental health professionals in the U.S., but Katz emphasizes that online therapy is not a one-size-fits-all solution.
Two Chairs plans to use the new capital to hire more therapists, expand into additional states, and enhance its technology. Currently, the company offers services at a co-pay rate for Aetna and Kaiser Permanente members, with a $226 session fee for others.
While the discussion around AI potentially replacing mental health professionals persists, Katz remains skeptical about the feasibility in the near future, as he believes the emotional aspect of therapy requires human presence.
