OVERVIEW

Therapprove | HealthTech | Seed Stage | Whitestown, IN

Founded in 2022, Therapprove has developed a two-sided therapy marketplace using dynamic matching, insurance compatibility, and referral transparency to increase liquidity for providers while simplifying access for caregivers. This coordinated discovery-to-booking workflow reduces bottlenecks in healthcare and drives higher throughput for therapy practices. Therapprove routes referrals directly to the right provider (both directly to providers and to organizations). Given the provider cannot take the client, Therapprove recycles leads back into the network for the next provider. Ultimately creating a self-sustaining network, reducing intake turnover and prioritizing efficiency.

PROBLEM

• Referral leakage is extremely high (30-40%) creating massive revenue loss for clinics
• Marketing is inefficient – most paid interactions failing to convert to patients
• CAC for current marketing tactics are very high - $800 per patient
• Siloed systems create bottlenecks, slow intake, and inconsistent follow-up
• Lack of referral transparency leaves families stuck on dead waitlist without updates or matching logic
• Caregivers face fragmented pathways when seeking therapy, damaging trust and continuity of care
• Healthcare organizations suffer systemic revenue loss due to broken coordination between clinics and referral

SOLUTION

• Two-sided dynamic therapy marketplace that matches families to the right provider using insurance, specialty, and availability
• Automated referral routing that recycles declined clients into the provider network instead of letting leads die
• HIPAA compliant, transparent referral and waitlist management dashboard replacing manual spreadsheets and calls
• High intent referral capture engine with 80% activation rate, dramatically outperforming paid market funnel
• A scalable infrastructure designed to expand beyond pediatric therapy into adult therapy, specialty medicine, and coordinated care networks nationwide
• Essentially being the core referral source for healthcare systems

MARKET OPPORTUNITY

Therapprove claims a TAM/SAM/SOM of $11.5B/$2.7B/$1.2M. This TAM is based on the total U.S. child therapy market but may not fully apply to Therapprove’s referral connection business model. This conclusion appears to be based on the U.S. child rehabilitation market, which is segmented into PT and OT. If the ABA therapy market of 6.86B is included, the total market size increases to roughly $20B. This inclusion is valuable because ABA sits adjacent to OT/PT/SLP in pediatrics, and often involves the same patient population and referral sources, and therefore the same access friction. However, the $20B figure is still not an appropriate TAM for Therapprove, as Therapprove monetizes the referral/access layer, not therapy services. Referral leakage is estimated about 40% of revenue meaning buyers will rationally pay a percent of the underlying revenue to reduce leakage. Within software markets, insurance premiums are commonly 3-5% of underlying revenue impacted. Applying this range to the overall market implies a more appropriate TAM of $600M-$1B. While pediatric therapy is the current focus, Therapprove is potentially transferable across the broader behavioral health landscape.

Therapprove operates at the access and referral layer of pediatric therapy, a subsegment of behavioral health services where demand growth and access constraints are especially acute. While pediatric therapy represents a defined subset of healthcare spend, it exhibits behavioral health like characteristics such as, persistent access gaps, chronic waitlists, and complex referral pathways. All of which support higher willingness to pay for access and routing infrastructure. Industry forecast indicates that the global behavioral health market has already exceeded prior expectations, reaching $185B in 2025 and projected to grow at 7-8% CAGR through the next decade. This sustained growth reinforces the long-term expansion potential of access-oriented platforms serving pediatric care pathways. Valuation normalization across healthcare (particularly behavioral health, value-based care, and physician practice management) has created more attractive entry points for early stage investing, while exit activity has begun to recover. Together, these trends support a favorable environment for infrastructure platforms that improve access and care coordination within high-growth markets. While behavioral health is not part of Therapprove’s core TAM calculations, its accelerated growth and access constraints strengthen confidence in the long-term expansion and strategic value of pediatric therapy access infrastructure.

CURRENT POSITION

Current ACV stands at $4,788 with a target of 250 locations in the next 15 months, reaching approximately $1.2M in ARR by EOY 2026. Therapprove currently has 40 clinics onboarded in pilot, with 100 projected by end of 2025. Also including 13 locations converting to paid customers, with plans to expand into nine additional states outside of Indiana. Therapprove’s current pipeline includes verbal commitment from Finni Health CEO (35 states), as well as BK Ventures, headstart Health, Golden Steps ABA, Tilly, Bloomwell, Alpaca, Epic Minds, and Unifi for an additional $10k – $30k MRR indicating potential LOIs. Looking to raise $50k for product development ($30k), Sales/marketing ($10k), and Ops/Compliance ($10k). These efforts support a clear growth milestone: scaling to 250 locations by EOY 2026 resulting in $1.2M ARR.