What You Should Know:
– Mental health benefits provider Lyra Health raises $110M in Series D funding, bringing its valuation to $1.1 billion.
– Lyra has grown significantly in 2020. So far this year, the company has added more than 800,000 new members to the population eligible to receive Lyra benefits, bringing its total member population to more than 1.5 million.
– Amid, the COVID-19 pandemic, Lyra is focused on expanding its enhanced teletherapy offering — Lyra Blended Care — which pairs video therapy sessions with personalized digital lessons and exercises based on Cognitive Behavioral Therapy (CBT) principles.
Lyra Health, a Burlingame, CA-based provider of mental healthcare benefits for employers, today announced a Series D financing round of $110 million. Addition led the round and was joined by Adams Street Partners and existing investors, including Starbucks chairman emeritus and former CEO Howard Schultz, Casdin Capital, Glynn Capital, Greylock Partners, IVP, Meritech Capital Partners, Providence Ventures, and Tenaya Capital. This financing enables Lyra to invest more aggressively in innovative, tech-enabled mental health treatments; to partner with more customers; and to expand and diversify its high-quality provider network.
Accessing and receiving mental healthcare is notoriously challenging for many Americans today. Cost, social stigma, and navigating the mental health system make it daunting for individuals to get the care they need. In addition, only a small fraction of therapists in traditional health plans are practicing proven methods and accepting new patients.
Founded in 2015, Lyra connects employees to high quality, effective mental health providers, and gives employees the flexibility of in-person care, live video therapy, and digital self-care tools. Lyra’s therapists only practice evidence-based therapies, like Cognitive Behavioral Therapy (CBT), and are available for appointments in just a few days.
Expanded Teletherapy Offering
The company is also focused on expanding its enhanced teletherapy offering — Lyra Blended Care — which pairs video therapy sessions with personalized digital lessons and exercises based on Cognitive Behavioral Therapy (CBT) principles. Lyra Blended Care provides a scalable, tech-enabled solution optimized for better care quality and clinical outcomes. In July, new peer-reviewed Lyra research was published demonstrating the effectiveness of this treatment program for clients with depression and anxiety. The company plans to continue the expansion of Blended Care to serve Lyra members — including couples and adolescents — who are experiencing a range of mental health challenges. Lyra’s solution offers a simple and supportive member experience, ensures immediate access to care, and prioritizes fast and durable symptom improvement.
Why It Matters
American workers are experiencing a surge in mental health challenges as they grapple with historic adversity amid the COVID-19 pandemic, economic uncertainty, and a national reckoning with racial injustice. Arecent study led by Lyra Health and the National Alliance of Healthcare Purchaser Coalitions found that 83 percent of U.S. employees today are experiencing mental health issues.
“Whether you’re dealing with a preexisting mental health condition that has intensified or new symptoms that have arisen during the pandemic, these are challenging times for many people. We are proud to support employers that are prioritizing mental health and will use this new funding to help even more organizations support the mental health and well-being of their most important asset — their people,” said David Ebersman, Lyra Health CEO and co-founder
Lyra has grown significantly in 2020. So far this year, the company has added more than 800,000 new members to the population eligible to receive Lyra benefits, bringing its total member population to more than 1.5 million. Lyra also is on track to surpass a milestone this month by delivering the one-millionth session of care through its exceptional provider network. In the last several months, leading employers in the retail, tech, energy, financial services, and the food and agriculture industries — including Morgan Stanley, Asurion, and Zoom Video Communications — have stepped up to prioritize workforce mental health by partnering with Lyra to offer employees immediate access to proven, evidence-based care from thousands of Lyra providers nationwide. This financing, on top of the Series C round completed earlier this year, positions Lyra to take advantage of the burgeoning market opportunity and the urgent need for better mental health solutions.
The company also announced the addition of Kerry Chandler to its Board of Directors. Chandler is Chief Human Resources Officer at Endeavor, a global entertainment, sports, and content company, and she previously served as a senior executive at Under Armour; Christie’s; the National Basketball Association; ESPN; and ESPN’s parent, The Walt Disney Company. She has also served in human resources leadership roles of increasing responsibility at IBM, Motorola, Exxon, and McDonnell Douglas. Chandler brings an extensive background in human resources operations, strategy, and executive leadership.