US-based mental health services provider Lyra Health secured $110m in series D funding yesterday from a consortium including Providence Ventures, the investment arm of healthcare system Providence Health and Services.
Venture capital firm Addition led the round, while Adams Street Partners, Casdin Capital, Glynn Capital, Greylock Partners, IVP, Meritech Capital Partners, Tenaya Capital and private investor Howard Schultz also took part. The round valued the company at $1.1bn, it told Forbes.
Lyra has built a digital platform that matches employees and their immediate family who suffer from poor mental health to therapists and coaches. It partners self-insured employers and customises its benefits programme for each workforce.
The company has more than doubled the number of staff it covers to more than 1.5 million people this year, adding more than 800,000 new members.
The capitak wiill allow Lyra to strengthen its offering, sign up more employers and expand its provider network. Part of the proceeds have been allocated to bolstering its telehealth service, Lyra Blended Care.
Kerry Chandler, chief human resources officer at talent agency Endeavor, will join the company’s board of directors, it announced alongside the round. It has now secured more than $268m in equity financing since it was founded in 2015.
Providence Ventures also contributed to a $75m series C round for Lyra in March this year that was led by IVP and backed by Meritech Capital, Casdin Capital, Crown Venture Fund, Glynn Capital, Tenaya Capital, Greylock Partners and Venrock.
The company had previously raised $45m in a mid-2018 series B round that included Providence Ventures, Tenaya Capital, Venrock, Crown Ventures, Glynn Capital, Greylock and Casdin Capital.
Lyra first received funding from Providence Ventures in 2015 when the unit took part in a $35m series A round co-led by Venrock and Greylock that included Breyer Capital and Origin Capital Management. It had raised $3.1m from healthcare benefits management service Castlight Health earlier the same year.
