Healthcare IT & vertical SaaS · Mental health practice operations
Klarify
An AI agent named Klara that drafts therapy notes, treatment plans, clinical letters and insurance claims for therapists. Founded in Toronto in 2024, now running through Y Combinator out of San Francisco, with a company-reported 8,300 therapists across five countries as of June 2026.
The second job
A therapy session ends at the top of the hour, and for the clinician the day is not over. There is a progress note to write, a treatment plan to update, an insurance claim to file and, often, a denial to appeal. Klarify's own account of its founding traces back to exactly that moment: according to the company's website, Moody Abdul started Klarify after his own therapist mentioned she was drowning in case notes.
The company's pitch is narrow on purpose. Klara, the AI persona at the center of the product, is not a therapy chatbot. It is built to handle everything around the session: clinical notes drafted from a recording or a dictated summary, treatment plans, referral and court letters, homework and check-ins between sessions, and the paperwork of getting paid.
“The therapy itself stays human. Always,” Moody Abdul, co-founder and CEO, said at the company's public launch in June 2026.
The problem it is pointed at
The company frames the opportunity around a workforce that is both overbooked and underpaid for its hours. Citing the American Psychological Association's 2024 Practitioner Pulse Survey, Klarify's June 2026 launch release says 53 percent of psychologists report having no openings for new patients, 32 percent report active burnout, and that figure rises to 51 percent among early-career psychologists. The same release cites a roughly 40 percent rise in outpatient mental health utilization from the first quarter of 2019 to the fourth quarter of 2023.
Klarify's own estimate is that many solo practitioners spend nearly $26,000 a year across fragmented documentation, billing and marketing tools, and that therapists collectively lose between $1,000 and $2,500 a month per clinician in missed or denied reimbursement, a figure the company attributes to a revenue-cycle analysis it cites but does not name. The company sizes the operational economy around therapy, across the US, Canada, the UK, Australia and New Zealand, at about $22 billion today, with a claimed path to $50 billion.
“Therapists are entering an increasingly automated reimbursement environment badly outgunned,” Abdul said. “We think therapists deserve modern infrastructure on their side too.”
Founders
Moody Abdul is a second-time founder. He previously co-founded Circleback.ai, an AI meeting-notes company that is itself listed as a Y Combinator company, and says he led $20 million in enterprise contracts during a stint at LinkedIn. He also hosts The Future of Therapy podcast, which the company and independent coverage both put at an audience of about 103,000 mental health professionals. His LinkedIn profile lists his location as Toronto, Ontario, Canada.
Alexander Bergholm, known as Bergie, is the co-founder and CTO. According to Klarify's own materials and independent reporting from Yespress, he built machine learning infrastructure at Workday, holds a patent and a published paper from the University of British Columbia in computer vision for self-driving cars, and researched deep learning in signal processing with a Finnish military special-task unit.
From a Toronto founding to a Y Combinator launch
Independent reporting from Yespress dates Klarify's founding to Toronto in 2024. The company's own Y Combinator profile lists its headquarters as San Francisco and its batch as Spring 2026, with a team of four. The klarify.ca domain and the company's stated Montreal data center both point back to its Canadian roots even as its public-facing base has shifted.
Klarify's original Y Combinator launch post, written for the batch's demo period, reported nearly 6,000 therapists using the product. By the company's public launch on June 30, 2026, that figure had grown to a company-reported 8,300 therapists across the US, Canada, the UK, Australia and New Zealand. As of this write-up, Klarify's live Y Combinator company page still describes usage as nearly 8,300 therapists, consistent with the June figure rather than a further jump.
What is proven, and what is still claimed
| Evidence | What the record shows | Source type |
|---|---|---|
| User growth | Nearly 6,000 therapists at the original Y Combinator launch post, more than 8,300 across five countries at the June 30, 2026 public launch, and still described as nearly 8,300 on the company's live Y Combinator page as of September 2026. | Company-stated |
| Privacy and compliance claims | Klarify says it is compliant with HIPAA, PIPEDA, PHIPA, Quebec's Law 25 and UK GDPR, and that it is contractually barred from training its AI on client data. No third-party certification, audit report or attestation was found to verify these claims. | Company-stated |
| Data residency | The company says its Canadian data center is in Montreal and runs largely on Hydro-Quebec hydroelectric power. | Company-stated |
| Named customers | One named user found in company materials: Kelly Copeland, M.Ed, a Registered Counselling Therapist. No named clinics or group practices were found. | Not found |
| SEC filings | No Form D and no mention of Klarify in any SEC filing type, searched by company name in EDGAR's company browser and full-text search as of September 25, 2026. | Public record |
| Headquarters | Y Combinator's company page lists San Francisco. Independent reporting from Yespress and the founder's own LinkedIn location both point to Toronto, Ontario. | Differs from company listing |
| Prior company | Circleback.ai, Moody Abdul's earlier company, is listed as its own Y Combinator company, an independently verifiable record of a prior AI meeting-notes product. | Public record |
| Team size | Y Combinator lists a team of 4 as of its most recent update. | Public record |
Read plainly: Klarify's growth numbers, privacy claims and market sizing all come from the company itself, and none of them have an independent filing or certification behind them yet. The one hard public record available, the absence of any SEC filing under Klarify's name, says only that the company has not raised money through a Regulation D offering, not that it has raised no money at all. Where the company's own materials disagree, such as its listed headquarters versus its founders' Toronto ties, the page notes it rather than picking a side.
What to watch
- Whether Klarify publishes any third-party audit, SOC 2 report or compliance certification behind its HIPAA and PHIPA claims.
- Named clinic or group-practice customers, beyond the single individual therapist quoted in company materials.
- Any SEC Form D or other public funding record, since none exists as of this write-up.
- Whether user-count growth continues past the 8,300 figure reported at the June 2026 public launch.
In their words
“The therapy itself stays human. Always.”
Moody Abdul, co-founder and CEO, public launch release, June 30, 2026 · Company release
“AI should handle the operational burden around therapy so therapists can spend more time actually helping people.”
Moody Abdul, public launch release, June 30, 2026 · Company release
“Therapists are entering an increasingly automated reimbursement environment badly outgunned.”
Moody Abdul, public launch release, June 30, 2026 · Company release
“We think therapists deserve modern infrastructure on their side too.”
Moody Abdul, public launch release, June 30, 2026 · Company release
“Klarify gave me something I didn't realize I had lost: time and energy. It has changed not only how I work, but how I live.”
Kelly Copeland, M.Ed, Registered Counselling Therapist, quoted in company materials, 2026 · Company-stated
Related companies
Sources
- Public recordY Combinator company page for Klarify, including founded year, batch, team size and headquarters
- Public recordY Combinator launch post for Klarify
- Public recordY Combinator company page for Circleback
- Public recordSEC EDGAR company search and full-text search for Klarify, no results
- Public recordMoody Abdul LinkedIn profile, location field
- IndependentKlarify: The AI Agent Doing Every Therapist Job Except the Therapy
- IndependentKlarify review, YC Tier List entry
- IndependentKlarify Review for Therapists, Pricing, Features, Alternatives
- CompanyKlarify Launches AI Operating System for Therapists as Mental Health Industry Faces Workforce and Insurance Crisis
- CompanyKlarify homepage
- CompanyKlarify Privacy and Security page
- CompanyIs Using AI for Therapy Notes Ethical, Klarify blog post by Moody Abdul
Profile researched and written by Healthcare Discovery. Last updated September 29, 2026.
