AAA Lyra Health lands $200m

Lyra Health lands $200m

Lyra Health, the US-based mental health benefits provider backed by care provider Providence Health and Services and health benefits management service Castlight Health, closed a $200m financing round on Monday.

The round was led by Coatue Management and included fellow investment management firm Sands Capital and undisclosed existing backers. It likely doubled the company’s valuation to $4.6bn, according to a report by The Information last month.

Founded in 2015, Lyra has developed a digital platform which provides access to mental health benefits for clients’ employees through their workplace health plans, connecting users to more than 5,000 therapists, doctors and mental health coaches.

The company claims to have provided benefits for more than 2.2 million employees across the world, for businesses including e-commerce group eBay and ride hailing service provider Uber. It will use the funding to speed up the delivery of its mental health benefits.

Lyra closed a $187m series E round in January 2021 that was led by VC firm Addition and which featured investment and financial services group Fidelity, Durable Capital Partners and Baillie Gifford.

Addition also led a $110m series D round for Lyra in August 2020 that valued it at $1.1bn. It included Providence’s venture capital unit, Providence Ventures, as well as Adams Street Partners, Casdin Capital, Glynn Capital, Greylock Partners, IVP, Meritech Capital Partners, Tenaya Capital and Howard Schultz.

The company had picked up $75m in a March 2020 series C round led by IVP and backed by Providence Ventures, Meritech Capital Partners, Casdin Capital, Crown Venture Fund, Glynn Capital, Greylock, Tenaya Capital and Venrock.

Lyra completed its $45m in series B round in 2018, raising the cash from Providence Ventures, Tenaya Capital, Venrock, Glynn Capital, Crown Ventures, Casidin Capital and Greylock.

Castlight Health provided $3.1m for the company in 2015, before Greylock and Venrock co-led its $35m series A round later that year, investing together with Providence, Castlight Health, Breyer Capital and Origin Capital Management.