Digital health has a new unicorn in mental health care provider Lyra Health, following a $110 million Series D round of financing. It’s valuation is now $1.1 billion, according to the company.
Just five months ago, Lyra closed a $75 million Series C financing.
In total, Lyra has raised $288 million since 2015, according to Crunchbase.
Lyra Looks to Deliver Comprehensive Mental Health Benefits
Lyra is based in California and serves more than 1.5 million U.S. employees and dependents. It provides tech-enabled mental health treatments such as video therapy sessions, digital lessons, and cognitive behavioral therapy exercises.
It provides treatments to address a variety of issues ranging from stress to self-harm. Importantly, Lyra relies on evidence-based practices to support members. The company claims that only 20% of mental health therapies have been proven clinically effective, yet a common complaint of provider networks is they aren’t curated based on treatment effectiveness.
Care services include self-care tools, mental health coaching, evidence-based therapy, medication management, critical incident support, onsite therapy, manager training, and work-life services. Some examples of evidence-based therapies that Lyra provides includes cognitive behavioral therapy (CBT), interpersonal therapy, and behavioral activitation.
Companies can work with Lyra as an employee assistance program (EAP) or through integrating Lyra with their health plan.
The Big Picture
This is a critical time for mental health care in the U.S., as people continue to suffer job losses and isolation due to the COVID-19 pandemic. In a Kaiser Family Foundation poll conducted in mid-July, 53% of U.S. adults reported increased worry and stress due to the virus, in increase from March when respondents were first queried.
Other findings of note in that study included:
- 36% of respondents had difficulty sleeping
- 32% had difficulty eating
- 12% reported increases in alcohol consumption or substance use
- 12% reported worsening chronic conditions
Can Lyra help with the fundamental issues of accessibility and quality care in our current mental health crisis? That remains to be seen, but clearly, investors are encouraged by Lyra’s results so far.
Source: Christine Hall. “Lyra Health Gains Unicorn Status After $110M Series D.” Crunchbase. Accessed August 25 2020.