Mental health care benefits provider Lyra Health became a unicorn Tuesday following a $110 million Series D round that brings its valuation to $1.1 billion, according to the company.
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Addition led the round and was joined by Adams Street Partners and existing investors, including Howard Schultz, Casdin Capital, Glynn Capital, Greylock Partners, IVP, Meritech Capital Partners, Providence Ventures and Tenaya Capital.
The new funding comes five months after Lyra Health closed a $75 million Series C financing led by IVP. Including the new funding, the company has raised a total of $288 million since its inception in 2015, according to Crunchbase data.
The Burlingame, California-based company, which provides mental health benefits to more than 1.5 million U.S. employees and dependents, said it will use the funding to invest in tech-enabled mental health treatments, to partner with more customers, and to expand and diversify its provider network. Its offerings include Lyra Blended Care, which pairs video therapy sessions with personalized digital lessons and exercises based on cognitive behavioral therapy principles.
The behavioral health market is expected to reach $240 billion by 2026, according to a 2019 report by Acumen Research and Consulting. Meanwhile, a recent 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 co-founder and CEO in a written statement.
In terms of growth, Lyra Health said it has expanded its customer base and doubled membership this year, adding more than 800,000 members. In addition, it will provide its one-millionth treatment session this month.
In addition to the funding, the company announced that Kerry Chandler, chief human resources officer at Endeavor, has joined its board of directors.
Illustration: Dom Guzman