Mental-health benefits provider Lyra Health announced Tuesday it closed on a $110 million Series D funding round led by Addition. Now, boasting a $1.1 billion valuation, it is the latest startup to achieve unicorn status.
The fresh funding brings the Bay Area company’s total capital raised to more than $288 million, coming on the heels of another $75 million raise back in March. Together, Lyra says this money will be used to partner with more customers, expand and diversify its provider network and further invest in its teletherapy tool — Lyra Blended Care.
By combining video therapy sessions with personalized digital lessons and exercises rooted in cognitive therapy principles, Lyra Blended Care has a demonstrated ability to help treat clients with depression and anxiety from the comfort of their homes. Looking ahead, the company is looking to expand its client base to include couples and adolescents.
All told, 2020 marks a year of significant growth for Lyra. In just the last seven months, the company has added more 800,000 new members, bringing its total count to more than 1.5 million U.S. employees and their dependents. New users include employees from companies like Morgan Stanley, Asurion and Zoom.
Lyra says this surge in usage across a variety of industries indicates that employers are prioritizing workforce mental health in a more earnest way due to the COVID-19 pandemic. This has never been more necessary: a study published by Lyra and the National Alliance of Healthcare Purchaser Coalitions last month found that 83 percent of U.S. employees are struggling with their mental health.
“Whether you’re dealing with a pre-existing mental-health condition that has intensified or new symptoms that have arisen during the pandemic, these are challenging times for many people,” CEO and co-founder David Ebersman said in a statement. “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 more important asset — their people.”
In addition to the funding, Lyra announced it added Kerry Chandler, the chief human resources officer at Endeavor, to its board of directors. The company is also growing its team, with dozens of open positions at its Burlingame headquarters as well as its clinics around the country.