Two Chairs Raises $72 Million in Series C Funding as Demand for Virtual Therapy Surges

Two Chairs, a prominent therapy startup founded by Alex Katz in 2017, has secured $72 million in Series C equity and debt financing. This latest investment, led by Amplo and Fifth Down Capital, brings Two Chairs’ total funding to an impressive $103 million. Amplo, which also spearheaded Two Chairs’ $22.5 million Series B round in 2019, demonstrated continued confidence in the company’s trajectory amid the evolving landscape of behavioral health services.

Two Chairs’ success has been all thanks to its strategic adaptation to the demands of the COVID-19 pandemic. Initially rooted in an in-person therapy model, the company swiftly transitioned to a remote-first approach as the global health crisis unfolded. Today, over 500 therapists associated with Two Chairs predominantly deliver treatments virtually, significantly departing from the startup’s original emphasis on face-to-face sessions.

This pivot to remote therapy has proven instrumental in accelerating Two Chairs’ growth. Katz disclosed that the company’s revenue has expanded eightfold over the last three years, a testament to the efficacy and scalability of its evolving service model. With most sessions now conducted online, Two Chairs has expanded its reach beyond its physical clinics in California, Washington, and Florida, making high-quality therapy more accessible to a broader audience.

Unlike some competitors in the digital behavioral health space, Two Chairs employs the “vast majority” of its therapists directly rather than relying on contracted clinicians. This approach allows the company to meticulously select and train therapists, emphasizing quality of care and the integration of measurement-based care (MBC) techniques to optimize patient outcomes.

Despite the proliferation of online therapy platforms, Katz maintains that finding the right therapist remains a challenge for many individuals seeking mental health support. Two Chairs aims to address this persistent gap by enhancing its therapist network, expanding into new states, and leveraging technology to refine its service offerings.

The injection of capital from the Series C round will fuel Two Chairs’ ambitious growth plans. The company intends to recruit additional therapists, broaden its geographic footprint, and further enhance its technological infrastructure. Notably, Two Chairs currently offers its services at a co-pay rate for Aetna and Kaiser Permanente health insurance holders, while charging $226 per session for other clients.

Katz also remains vigilant about the potential for AI to replace human therapists entirely. He underscores the fundamentally human and emotionally driven nature of therapeutic relationships, emphasizing the irreplaceable role of skilled therapists in delivering effective mental health care.

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