Two Chairs, a California-based hybrid behavioral health company, announced it had closed a $72 million Series C equity and debt-financing round.

Amplo Financing led the round, with Fifth Down Capital and other investors participating. Bridge Bank provided the debt financing. 

The round brings the company's total raise to $103 million. 

WHAT IT DOES

Two Chairs matches patients with the correct therapist by organizing a 45-minute interview between the patient and a licensed expert trained in the matching process. They offer therapists in over 90 areas of expertise and offer teletherapy in person and virtually. 

The company has in-person clinics in California, Washington and Florida and is an in-network provider with Aetna in the three states, and with Kaiser Permanente in California and Washington.

"Two Chairs is committed to bringing exceptional mental health care to more people who need it, and this funding will help us continue to work toward that goal. In addition to expanding to more states with more partners, we’ll be deepening our investments in proprietary technology to ensure the best patient-therapist match, delivery of high-quality measurement-based care, and a differentiated experience for our clinical team," Alex Katz, founder and CEO of Two Chairs, told MobiHealthNews in an email. 

MARKET SNAPSHOT

As of 2021, more than one in five adults, or 57.8 million people, in the U.S. lived with a mental illness, according to the NIH.

As of Q3 2023, virtual mental health remained the top-funded clinical indication for startups in the digital health space, with $0.9B distributed in the sector. 

Last year, Two Chairs launched a virtual group therapy offering for Washington state patients. It also grew its offering to serve Spanish-speaking patients in Florida following its expansion into the state and opening of its Miami clinic. 

The company was founded in 2017 and secured $21 million in Series B funding in 2019. 

Other companies in the virtual behavioral healthcare space include Blackbird, a neuroscience-backed hybrid mental health provider for children and young adults, which raised $17 million in February in a Series A funding round. 

Teletherapy company Talkspace is also a big player in the digital behavioral health sector, as are New Zealand-based virtual reality and cognitive behavioral therapy company oVRcome, pediatric digital mental health company Little Otter, and Philadelphia-based mental health technology company NeuroFlow.