Mia Perry, CEO

Trevor Blum, COO

Ethan Hirsh, CFO

Lauren Foley, CMO

Bobby O’Connell, CTO

EXECUTIVE SUMMARY

Opportunity Statement

42% of Generation Z is diagnosed with a mental health condition. 164 million people live in a designated

Mental Health Professional Shortage Area and do not have access to mental health services. America is

experiencing a mental health crisis, and Generation Z is at the forefront of it. GroupThrive’s mission is to make

therapy accessible to all who struggle with their mental health. By providing a secure online platform that

leverages group therapy and its benefits, GroupThrive provides a community and delivers affordable, quality

care right to your mobile device.

According to research published in American Psychologist, by meeting the unanswered mental health needs in

the United States, group therapy would save more than $5.6 billion and require 34,473 fewer new therapists than

individual therapy. By just meeting 10% of the need through group therapy, 3.5 million more people could be

seen by a therapist. GroupThrive is capitalizing on the opportunity and gap in the market to provide care to the

millions of people who need it.

Business Concept and Service

GroupThrive is a mobile application on which users can access group therapy sessions from the comfort of their

devices. By utilizing group therapy, GroupThrive can make mental healthcare more accessible to people

struggling with mental health conditions and introduce them to a community of support. High costs attributed to

copays or paying therapists directly are often contributing factors to the inaccessibility of mental health services,

but group therapy allows GroupThrive to cut the costs passed onto the customer associated with paying

therapists. Additionally, as an online platform, GroupThrive reaches people in Mental Health Professional

Shortage Areas. GroupThrive offers three monthly subscription plans to users, all of which include 4 therapy

sessions per month.

Competitive Advantage

GroupThrive’s main competitive advantage is the low-cost alternative to individual therapy. GroupThrive’s price

undercuts that of competitors, as well as the average amount that Generation Z reports spending on therapy per

month, even when covered by insurance. Group therapy only makes up 5% of all therapies, however, it has been

proven as effective as traditional individual therapy. With GroupThrive’s business model, therapists significantly

increase the number of clients they service, and consumers can avoid the months-long waitlists they are

currently facing. Competition in the industry is increasing as the industry develops but is currently, moderately

low. The barriers to entry are moderate and include legal issues, start-up costs, and differentiation. Data privacy

is necessary for the health care field with HIPAA protecting sensitive patient health information from being

disclosed without their knowledge. Security and privacy are central to GroupThrive’s mission and are integrated

both in policy and technology. For start-up costs, while there is the benefit of limited investment in tangible

assets, developing software is the largest start-up cost. Finally, a lack of differentiation in the present

environment creates the opportunity for innovative features and concentration in a specific medical specialty.

GroupThrive’s primary differentiators are the use of group therapy as a vessel for delivering mainstream mental

health services and its strong focus on user privacy and data security.

Target Market

GroupThrive’s market consists of Generation Z in the United States. The specific ages GroupThrive will target

are 17-26 year olds. The estimated size of this market is 22.9 million people as of 2023, and the adjusted figure

is based on the Chain Ratio Analysis conducted. Based on the Transtheoretical Model of Behavioral Change,

three different potential customers have been identified: The Contemplator, The Prepared, and The Action Taker.

The Contemplator: This potential customer is a person who is still deciding if therapy is the right choice

for them. They know that they are stressed or anxious but they have not been fully educated on the ways

to aid those feelings. They see cost as a barrier to care. GroupThrive will be an easy solution for them to

test.

The Prepared: This potential customer is a person who knows that therapy is right for them, however,

they don’t know where to start. GroupThrive will be that simple way for them to start their journey to

better mental health.

The Action Taker: This potential customer is a person who is already in therapy and knows how to

improve and take care of their mental health. GroupThrive will provide a new alternative version of

therapy for them.

Customers value quality therapists, affordable prices, and data privacy when considering therapy. Market

research has found that 80.6% of potential patients value quality therapists as the most important factor.

Customers report that wellness apps have unqualified therapists and participate in the selling of data. Due to this,

there is a rising demand for an accessible platform that provides quality care that protects patients.

Marketing Approach

To do well in the mental health app market, a company must advertise its services online as that is where the

target consumer is. The key marketing methods used are creating large social media presences and addressing

the concerns associated with therapy. GroupThrive will take from these trends and aim to educate consumers on

how group therapy can be more beneficial than individual therapy, specifically in the form of pricing, as

GroupThrive will have a much lower price point than competitors. GroupThrive will aggressively promote the

mobile app on YouTube and Instagram, the two most used social media platforms by Gen Z, with an advertising

budget of $397,000 per year. Additionally, GroupThrive will take the same distribution channel approach as

most apps and offer the mobile application on the Google Play Store and App Store.

Technology and Operational Issues

GroupThrive will utilize an in-app video chat feature to allow users to participate in the group therapy sessions.

The app itself will be developed in-house which will allow GroupThrive to offer compensation to the

developers, thus lowering R&D and maintenance costs in the long-term and allowing software development to

become a core competency of the company. GroupThrive will pay therapists $40 per hour to hold therapy

sessions, around $10 more than the national average for group therapists, as an incentive to join the platform.

Additionally, therapists will be able to access their payments quickly after the session is completed, as they will

not be contracted employees. GroupThrive must abide by all legal issues and requirements related to online

therapy. Teletherapy is a new and emerging practice with many new laws and regulations being introduced. The

GroupThrive executive team and legal consultants will consistently review laws and regulations to ensure that

the company complies with them.

Management Team

Mia Perry: Mia will act as the CEO of Groupthrive. With her project management and leadership skills, she will

oversee the decision-making processes, manage overall operations, and set the strategic direction of the

company.

Ethan Hirsh: Ethan will act as the CFO of the company. He will oversee the finances of the company and set

accurate budgets for the rest of the team members to work from.

Trevor Blum: Trevor will act as the COO of the company. He will oversee the daily business operations and

create an organizational structure within GroupThrive.

Bobby O’Connell: Bobby will serve as the company’s CTO and will assist in the technological research,

development, and operations associated with the company.

Lauren Foley: Lauren will act as the CMO. In her role, she will utilize the marketing budget to create

advertising campaigns and oversee the overall brand persona.

Advisory Board:

Jeff Rubin: Professor Rubin is the founder and CEO of SIDEARM Sports and is a Professor of Practice at

Syracuse University’s iSchool.

Jim Lanahan: Mr. Lanahan has over 35 years of experience building market-leading technology products

working at Apple and through involvement with several venture-funded start-ups.

Carrie Brown, Ph.D.: Dr. Carrie Brown is the Director of Counseling and the coordinator of the group therapy

program at the Barnes Center at the Arch.

Economics

GroupThrive’s business model is a two-tier subscription model with an additional plan for students. The

cheapest tier will cost the consumer $55 per month and allow them to access large group therapy sessions (9-15

participants). It is estimated that 33% of consumers will purchase this option and the gross margin will be

$40.95. The most expensive tier will cost the consumer $68 per month and allow them to access large and small

group (5-8 participants) therapy sessions. It is estimated that 10% of consumers will start with this purchase and

the gross margin will be $41.29. The student plan will allow the consumer to access both types of services for a

cost of $42 per month. It is estimated that 57% of consumers will purchase this subscription and the gross

margin will be $14.95.

Financial Highlights

In the first three months after launching the app, GroupThrive will see profits in the negative based on high

fixed start-up costs and variable costs. After covering early startup expenses, GroupThrive will reach its

break-even point within the third month after launching the app, and 9 months after beginning research and

development. To reach this break-even point, GroupThrive will need 31,964 subscribers which makes up only

0.1% of our total identified target market. GroupThrive expects quick growth in the early phases after launching

and expects to see a net income of around $2.8 million by the end of the second year after launch.

Financial Offering

GroupThrive will require an initial investment of $500,000 from an angel investor in exchange for a 25% stake

in the company. This amount is based on the amount needed to cover start-up costs and variable expenses up to

our break-even point. The value of GroupThrive is estimated at $32.7 million based on an average of the DCF

and Earnings Multiple valuations. The angel investor will see more than a 16-times return on their investment.

The founding members will also contribute $20,000 each.

APPENDIX

A. Industry Products Breakdown

B. Mental Health Apps Market Size

C. Summary of Primary Research - Survey

D. Primary Research - Long Interviews

Interviewee

Response Summary

Carrie Brown, Ph.D.

Director of Counseling and

Group Therapy Program

Coordinator

Syracuse University Barnes

Center at the Arch

Group therapy is an extremely effective and underutilized tool,

and it has had a lot of success at SU even though participation is

not always high. Groups open at the beginning of the semester

and close after one or two sessions so that the groups can get

comfortable around one another and not face new people joining

when they are trying to share sensitive information. Dr. Brown

stated that the Barnes Center, especially since COVID, has had

a hard time meeting the immense demand for therapy that the

student body needs. They just do not have enough therapists to

keep up, which is one of the reasons that they offer group

therapy. She said that GroupThrive is a great idea, especially for

the purposes of destigmatizing group therapy in order to provide

mental health support to so many more people than are currently

being served.

Sally Carmer

Syracuse Intergroup (AA of

Central NY)

During COVID, donations went through Venmo, and meetings

were held on Zoom, with the rules for cameras being

determined by each group as they saw fit. They used an app to

make and distribute the online meeting schedule. Sally said that

this tool would serve their purposes of digital meetings and

scheduling and that it is a great idea for traditional mental health

services, but that AA and intergroup organizations would not be

interested in using this service because it is written in the

Alcoholics Anonymous 12 Concepts to not take external

contribution. AA used a trusted servant model where people

who are recovering want to give back to the community, so

there is a level of trust in the community. It will be important for

GroupThrive to set its policies so that this level of trust can be

built between the moderator and the participants so that

everyone can have a beneficial experience. Data security and

anonymity are of the utmost importance.

Holly Lowery Davis

Chief Operating Officer

Ophelia’s Place

Eating disorder clinics often use group therapy to help patients

recover and find a community of support, especially for

inpatients. Ophelia’s Place offers resources to outpatients and

provides them with resources for recovery, and also provides

1-on-1 care to people who request it. Holly stated that when

working with support groups, it is important for the moderator

to emphasize the importance of listening to each other and

creating a safe space to share. She said that Ophelia’s place

would use the GroupThrive tool to provide more online support

and that it would allow them to make their services more

accessible to the community. She would be interested in seeing

how GroupThrive could support their organization while using

their own moderators and therapists.

E. Marketing Collateral

a) Instagram Story & Post

b) Physical Advertising

F. Product Concept

App Welcome Screen & Optional Intake Survey, Browse Group Feature, Group Session with

GroupThrive branded backgrounds

G. Financial Statements

Year 1 Income Statement

Year 2 Income Statement

Years 3-5 Income Statement

Year 1 Balance Sheet

Year 2 Balance Sheet

Years 3-5 Balance Sheet

Year 1 Cash Flow Statement

Year 2 Cash Flow Statement

Years 3-5 Cash Flow Statement

DCF Valuation & Multiple Earnings Valuation Summary

Average Valuation

Works Cited

Transtheoretical Model of Behavioral Change applied to Mental Health Marketing

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8405397/

YouTube Advertising Costs

https://localiq.com/blog/youtube-advertising-cost/#:~:text=YouTube%20ads%20are%20measured%20i

n,views%20of%20your%20YouTube%20ad

Industry Beta

https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Betas.html

Industry Multiple

https://www.equidam.com/ebitda-multiples-trbc-industries/

Inaccessibility of Mental Healthcare in America

https://www.cnbc.com/2021/05/10/cost-and-accessibility-of-mental-health-care-in-america.html

Gen Z Mental Health Stats

https://www.charliehealth.com/post/gen-zs-mental-health-crisis-collective-trauma#:~:text=Gen%20Z%

20and%20mental%20health&text=A%202022%20survey%20of%20Gen,with%20a%20mental%20he

alth%20condition.

Gen Z More Likely to Report Mental Health Concerns

https://www.apa.org/monitor/2019/01/gen-z

Effectiveness of Group Therapy

https://www.psychologyinspain.com/content/full/2004/8008.pdf

American Psychological Association

https://www.apa.org/monitor/2023/03/continuing-education-group-therapy#:~:text=But%20group%20t

herapy%20is%20as,reach%20many%20people%20at%20once.

National Institute of Health

https://www.ncbi.nlm.nih.gov/books/NBK549812/

Verified Market Research

https://www.verifiedmarketresearch.com/product/mental-health-apps-market/#:~:text=Based%20on%2

0Type%2C%20The%20market,highest%20revenue%20share%20in%202021