Pace Launches Virtual Group Therapy – Scaling Mental Healthcare

Approximately one in five individuals experiences a mental health challenge. Pace, a recently established company created by former leaders from Pinterest and Affirm, aims to focus on the remaining four individuals within that statistic.

“Mental wellness isn’t an all-or-nothing state for anyone,” explained Jack Chou, a co-founder of Pace. “The concept of being perfectly mentally healthy is unrealistic; everyone navigates a spectrum between clinical mental unwellness and complete contentment.”

While diagnosed mental health conditions often lead individuals to seek medication or therapy, those experiencing difficulties in a less defined area may still require support. Following Jack Chou’s personal experience with burnout during his time at Pinterest and Affirm, and a challenging personal situation faced by co-founder Cat Lee, previously of Pinterest and Maveron, the two colleagues identified a need for assistance for those who don’t fit neatly into traditional categories.

Therefore, Pace, which is now available after a period of private testing, intends to address this gap by offering small-group training sessions designed to help people prioritize their emotional and mental wellbeing. The company is beginning its operations with $1.9 million in seed funding. Investors include Nellie and Max Levchin, Jeff Weiner, Emilie Choi, Ben Silbermann, Box Group, and SV Angel.

The central component of the service is a 90-minute live video group session held weekly, facilitated through Pace’s own platform. The video functionality utilizes Twilio and Agora technologies (and notably, does not use Zoom, due to limitations in its software development kit regarding personalization features). Users can participate in these sessions via Web, iOS, or Android devices.

Pace organizes groups of eight to ten people based on shared interests or backgrounds, such as a group for entrepreneurs or parents. Each new user then participates in a 15- to 30-minute interview to determine their goals for the experience.

Once a group is established, they meet weekly with a facilitator. While not intended as a substitute for therapy, the company seeks facilitators who are licensed mental health professionals. To support this goal, Pace has brought on two founding psychologists: Dr. Kerry Makin-Byrd and Dr. Vivian Oberling.

When users register, they are asked to select three words that best describe themselves from a provided list. These words are displayed beneath their video feed during sessions, helping to streamline introductions and encourage quicker connection.

The groups discuss a wide range of topics, including strategies for managing stress and adapting to remote work environments. While there isn’t a set curriculum, each session aims to provide participants with a key takeaway.

Pace does not adhere to a specific curriculum during sessions, instead prioritizing open discussion and allowing participants to share their experiences. Facilitators are licensed mental health professionals, many of whom work part-time or as freelancers. The company also plans to introduce features that allow group members to connect and communicate outside of the weekly sessions, and to further develop the platform beyond a simple video call format.

The market for mental health software is currently experiencing significant growth. Last month, Lyra Health secured $175 million in funding at a $2.25 billion valuation to connect employees with therapists and mental health resources. Talkspace, another telehealth provider, recently announced plans to become a publicly traded company through a special purpose acquisition company (SPAC). Other prominent companies in this space include Calm, valued at $2 billion, and Headspace, its primary competitor in the mindfulness app market.

Pace’s approach is more aligned with the latter category than the former, as it avoids being categorized as a telehealth service and instead positions itself as a complement to traditional mental healthcare.

“Our intention is to be a resource for therapists who may want to incorporate group work into their practice, or to provide a next step for their patients,” Chou explains.

One of Pace’s main competitors is Coa, which launched with $3 million in seed funding in October 2020. This startup similarly applies principles from group fitness culture to the realm of mental wellbeing, combining educational content with breakout sessions to encourage conversation.

Pace declined to elaborate on its specific differentiators from Coa, beyond mentioning upcoming product features and community initiatives. Coa charges $25 for individual classes, mirroring the fitness class model, while Pace charges $45 per week for groups to meet consistently over several months. Coa employs licensed therapists, while Pace utilizes licensed mental health clinicians.

The co-founders of Coa, Alexa Meyer and Dr. Emily Anhalt, emphasize that their service differs from Pace in terms of its curriculum.

“While all of Coa’s classes are led by licensed therapists, the class structure differs from traditional group therapy,” Meyer stated. Coa’s programming is informed by Dr. Anhalt’s research on mental wellbeing. Both companies are still in their early stages, but Coa reports having a waitlist of 6,000 people.

Both startups face common challenges for any new company: attracting customers, effectively measuring outcomes, and scaling a deeply personal and emotionally sensitive experience. As Hunter Walk of Homebrew recently noted in a blog post, exposing vulnerable populations to the risks inherent in venture-backed startups is a complex issue. Startup failures are common, and in this context, that could mean losing a crucial support system for individuals relying on group therapy.

Ultimately, the most successful company in the mental health and wellness space will likely be the one that offers a well-designed curriculum and a user experience that fosters vulnerability, even in a virtual environment. Regardless, the increased investment and innovation in this sector are arriving at a critical time.