Lyra Health Raises $187 Million For Mental Health Benefits Platform

Lyra Health, a provider of mental health benefits for employers, announced a Series E financing round of $187 million.

Addition led the round and was joined by new investors Durable Capital Partners, Fidelity Management & Research Company, and Baillie Gifford, along with other existing investors.

Founded in 2015, Lyra Health raised nearly $500 million to date.

According to the company, its mental health benefits are offered to 1.5 million U.S. employees and dependents. Lyra connects companies and their employees – plus spouses and children – to therapists, mental health coaches, and personalized medication prescribing using matching technology and a digital platform.

More than 83% of U.S. employees are experiencing mental health issues, according to research Lyra Health conducted in 2020 in partnership with the National Alliance of Healthcare Purchaser Coalitions. Additionally, 40% of workers feel employers do not support their mental health.

Lyra says it has more than doubled its customer base in 2020 and extended its services to support over 2 million mental health members. Lyra customers include Genentech, Morgan Stanley, and Zoom Video Communications.

The company is also expanding its teletherapy offering, which pairs video therapy sessions with personalized digital lessons and exercises based on cognitive behavioral therapy.

“2020 put the need for mental health care transformation in sharp focus, as more people sought help during these extraordinary and difficult times,” said David Ebersman, Lyra Health CEO, and co-founder.

“The traditional mental health care system cannot address the critical needs people have today. Lyra is now able to directly support more than 2 million members as we enable employers to offer their people easy, effective access to clinically proven mental health care. This latest financing round will allow Lyra to continue to develop new and innovative care solutions while reaching new customers and members.”

In 2020, Telehealth companies raised $4.3 billion, a 139% increase YoY, compared to $1.8 billion in 2019, according to the latest Mercom Digital Health Funding & M&A report.