Health Tech, Employee Benefits

Mental health startup Lyra passes $2B valuation

Mental health startup Lyra Health raised $187 million in funding, giving it a post-money valuation of about $2.3 billion. The company also struck a partnership with EAP-provider ICAS, which would expand its mental health benefit to employees in other countries.  

Lyra Health’s blended care platform includes access to therapists and self-care tools. Photo credit: Lyra Health.

Mental health startup Lyra Health raised $187 million in funding, giving it a post-money valuation of about $2.3 billion.

The Burlingame, Calif.-based startup uses a “blended care” program, which pairs therapy sessions with online lessons and exercises. It recommends providers based on patients’ schedule and preferences. The company also offers health coaches for people who need short-term support, and has stuck partnerships with other digital health tools like MyStrength and meditation app Calm.

Lyra was founded in 2015 and has grown quickly in recent years. In 2020, it saw the number of clients double as companies sought to build out their mental health benefits in response to the Covid-19 pandemic. Lyra now works with 72 employers representing roughly 2 million members. Some of its customers include Genentech, Morgan Stanley and Starbucks.

“2020 put the need for mental health care transformation in sharp focus, as more people sought help during these extraordinary and difficult times,” Lyra CEO and Co-Founder David Ebersman said in a news release. “This latest financing round will allow Lyra to continue to develop new and innovative care solutions while reaching new customers and members.”

Addition, a new firm started by former Tiger Global Management investor Lee Fixel, led the most recent funding round, with new investors Durable Capital Partners LP, Fidelity Management & Research Company, and Baillie Gifford. Addition also led Lyra’s $110 million series D round last summer. To date, the company has raised more than $480 million.

“This round is reflective of the work we’ve done to date,” Andrew McCarthy, Lyra’s head of corporate marketing, said in a phone interview. “We’re really focused on delivering comprehensive mental healthcare. From working with a coach all the way to working with a psychiatrist.”

Lyra also struck a partnership with ICAS World, a provider of employee assistance programs that has offices in more than 43 different countries. It would combine its network and provider’s with Lyra’s, giving international businesses the option to have one mental health offering for their employees around the world, McCarthy said.