Two Chairs said the capital will allow it to expand into new markets and invest in its matchmaking platform for patients and providers. The company has taken a different approach to growth than many of its competitors in the digital mental health sector. Rather than adding new markets quickly by using contract workers, Two Chairs has expanded more slowly.
“In our early years, we kind of intentionally paced market expansion quite slowly. We wanted to limit the complexity and surface area of the business so that we could be really, really laser focused,” said Two Chairs founder and CEO Alex Katz. “By having a full-time clinical staff, we're able to more thoroughly vet and hire therapists that we think are aligned with our model of care.”
Katz declined to disclose specific states where the company planned expansions, but said it values larger and dense urban populations where it has existing payer partners. Despite the hybrid nature of the company's business, more than 90% of its patient care is delivered via telehealth, he said.
The company’s funding is the latest in a series of sizeable rounds for digital mental health companies despite the market slowdown. Grow Therapy, a virtual mental health company, closed an $88 million Series C funding round last Monday. In January, digital behavioral health company Forta announced it secured $55 million in a Series A funding round. The company provides virtual behavioral care for children with autism spectrum disorder and uses an artificial intelligence algorithm within its parent-led applied behavior analysis therapy practice.
Two Chairs, founded in 2017, has raised $103 million funding to date, including this latest round.