BetterHelp

BetterHelp

Company type	Subsidiary
Industry	Psychotherapy
Founded	2013 (2013)
Founders	Alon Matas Danny Bragonier
Headquarters	Mountain View, California, U.S.
Area served	Worldwide
Services	Online therapy Unlimited messaging therapy
Parent	Teladoc Health (2015–present)
Website	www.betterhelp.com

BetterHelp is an online mental health service that facilitates direct counseling and therapy sessions through web or phone-based messaging. Established in 2013 by entrepreneurs Alon Matas and Danny Bragonier, the company was acquired by telehealth giant Teladoc Health in 2015 but continues to operate under its original brand identity.

In 2023, the company resolved Federal Trade Commission allegations by agreeing to pay $7.8 million related to the unauthorized sharing of sensitive user information with third-party platforms including Facebook and Snapchat, despite prior privacy commitments.

Background

BetterHelp was initiated in 2013 by Alon Matas, who collaborated with Danny Bragonier to create a digital platform for therapy services and a directory of licensed therapists.

In 2015, Teladoc acquired BetterHelp for $3.5 million in cash along with a $1 million promissory note, plus additional annual payments amounting to 15% of BetterHelp’s net revenue over the following three years. This strategic acquisition broadened Teladoc’s offerings in telemedicine and online mental health care, strengthening its presence globally.

Services

The counseling team at BetterHelp comprises licensed psychologists, social workers, marriage and family therapists, and professional counselors holding master’s degrees or doctorates. Each therapist has a minimum of three years’ experience and has completed at least 1,000 hours of clinical work. All providers undergo verification of licensure and must pass a case study evaluation reviewed by a licensed clinician. While BetterHelp primarily delivers individual therapy, its affiliated brands Regain and Teen Counseling specialize in couples and adolescent therapy, respectively.

Users are given access to a secure "room" where they can exchange messages, engage in live chat, and arrange video or phone appointments with their counselors. This service is available around the clock on any device with Internet connectivity. The platform offers up to four live therapy sessions per month.

History

By 2018, BetterHelp had facilitated more than 33 million therapy sessions with a network exceeding 2,000 counselors and forecasted revenues of $60 million. In 2021, the company collaborated with Ariana Grande to provide $1 million worth of complimentary therapy services. That year, it supported 2.5 million clients and reported $700 million in revenue.

From 2020 through 2023, BetterHelp was the leading advertiser on podcasts, investing nearly $8 million in advertising alone during December 2023. The company has also been a major sponsor for various YouTube content creators, enhancing its visibility in the market.

In November 2023, Alon Matas, who had served as a key executive for ten years, announced his resignation.

During the Gaza conflict, BetterHelp extended six months of free therapy to individuals impacted in Israel through an independent initiative confirmed by its parent organization.

In May 2024, BetterHelp entered into a partnership with Tom Brady to offer one month of complimentary therapy services.

FTC settlement concerning customer information

In 2023, BetterHelp was accused of transmitting users' personal information to external parties, including platforms such as Facebook and Snapchat. The company's privacy policy from 2022 disclosed that data sharing might take place during events like asset transfers, mergers, or other corporate transactions. BetterHelp maintained that it was obligated by law to store health-related data.

On March 2, 2023, the Federal Trade Commission (FTC) proposed an order prohibiting BetterHelp from distributing consumers' health information to third parties and mandated a payment of $7.8 million to resolve allegations of exposing sensitive data. The FTC's complaint claimed that BetterHelp gathered health details, IP addresses, and email contacts while assuring users of confidentiality. Without admitting fault, BetterHelp consented to the settlement and commenced refunding impacted clients by May 2024.

Reception

In October 2018, prominent YouTube personalities such as PewDiePie and Boogie2988 criticized BetterHelp for perceived unfair pricing models, unsatisfactory user experiences, reviews allegedly from paid actors, and terms of service that did not align with advertised promises. Alon Matas, co-founder and then-CEO, publicly responded to these issues.

By 2024, the Federal Trade Commission identified BetterHelp for improper handling and sale of client information in breach of privacy laws. This scrutiny has affected the company's reputation within the marketplace due to misleading privacy statements.