Source Illustration: Dom Guzman
Less than six months after gaining unicorn status following a $110 million Series D round, mental health care benefits provider Lyra Health is back with another significant round of funding, an $187 million Series E. Mental
The Burlingame, California-based company hinted back in December that it was looking to raise new funds. Addition, which led the Series D, led this new round and was joined by new investors Durable Capital Partners, Fidelity Management & Research Co. and Baillie Gifford, along with other existing investors. The new round gives the company more than $480 million in total funding.
Following a doubling of customers in 2020, Lyra expects to serve more than 2 million members. As such, the company intends to use the new funding on technology development, growing a diverse provider network, and new partnerships.
The behavioral health market is predicted 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.
Startups in this space are also gaining attention from investors. In a list of U.S. startups working in mental health, 132 deals were venture-backed within the past five years. In fact, investors pumped $1.1 billion into these companies during that time frame, according to Crunchbase data.