- Two Chairs shift focus to online therapy due to COVID-19.
- The company's revenue grows eightfold in three years post-shift.
- Two Chairs secures $72 million in Series C in equity and debt funding.
In January 2017, when Alex Katz created Two Chairs, the belief was that in-person settings were the most helpful for treating behavioral health. The company opted to use technology in the form of matching algorithms to ensure clients have the best therapists in the field.
However, because of the onset of the COVID-19 pandemic, Two Chairs was forced to plan a new strategy and offer online therapy. The company no longer solely focuses on rental locations in California, Washington, and Florida; most therapists treat their clients online.
With such a change to the remote-first therapy model, the company has proven to be a fast-growing business, with the firm’s revenue expanding eight times during the past three years.
In the last couple of days, Two Chairs has raised $72 million in Series C funding, which has increased their total funding to $103 million. The previous round of funding was headed by Amplo and Fifth Down Capital, with Bridge Bank as the debt provider.
Along with Two Chairs, one of the therapy startups that have raised significant funding rounds, Grow Therapy has since joined.
According to Katz, Two Chairs offers the customer an experience that differentiates it from other services like Talkspace and BetterHelp most of their therapists are company employees, and they can recruit quality therapists and train them in the measurement-based approach.
Katz strongly noted the need for measurement-based care to increase outcomes and reduce expenses. Nevertheless, only a few therapists have applied this tactic.
Edited by Shruti Thapa
