COVID really did a series about our collective mental health; With all of the death, isolation from locks, fear of contracting the virus, it shouldn’t come as a shock until January of this year Over 40% of adults reported symptoms of anxiety and / or depression.
As such, mental health companies were suddenly in vogue, and investors filled their pockets with money; Overall, these startups have set a record $ 2.4 billion in risk financing in 2020Companies like Mindstrong, Modern Health, Ginger, Headspace, Spring Health, Big Health, Atai, Cerebral, Vida Health, Amwell and Calm are all raising funds.
(Editor’s Note: On May 19th we will be the Future of Mental and Behavioral Health 2021 virtual event. We will have top-level VCs and C-level executives from leading mental and behavioral companies like BetterHelp by Teladoc, Amwell, Doctor on Demand, Kaiser Permanente, Bessemer Ventures and others.
Perhaps the biggest beneficiary of this boom was Lyra Health, a company that provides mental health services to U.S. employees and loved ones. The company has initiated three financing rounds up to 2020: first, a $ 75 million Round in March; a $ 110 million Round in August; and a undisclosed amount in November.
Now the company has already started its second financing round of 2021: after a Report from the informationLyra Health raises another $ 200 million, this time led by new investor Hedge Fund Coatue Management. This follows a $ 187 million in a Series E round in January valued at $ 2.3 billion for Lyra; With this new funding, the company is said to be valued at $ 4.6 billion, which will double in less than six months.
When Lyra and Coatue reached for comment, they declined to comment on the report.
Founded in 2015, Lyra Health is a mental health benefit provider for employees and their loved ones in the United States. The company uses matching technology and a digital platform to connect businesses and their employees along with their families with therapists, mental health coaches and personalized drug prescribing.
The company more than doubled its customer base in 2020 and now supports more than 2 million members. Customers include Genentech, Morgan Stanley and Zoom.
In addition to growing last year, Lyra launched Blended Care, which combines video therapy sessions with personalized digital lessons and exercises based on the principles of cognitive behavioral therapy (CBT). Lyra too announced a partnership with Calm in December so that Lyra’s employer partners can offer their employees peace of mind as a benefit.
Previous investors in Lyra include IVP, Meritech Capital Partners, Casdin Capital, the Crown Venture Fund, Glynn Capital, Greylock Partners, Providence Ventures, Tenaya Capital, Venrock, Addition, Adams Street Partners, Howard Schultz, Casdin Capital, PLUS Capital, and Cameron Diaz. Nicole Kidman, Paul George, Tony Gonzalez, Aaron Gordon, Nolan Arenado, Isaiah Thomas and Khris Middleton.
Mental health company funding in 2021
Digital health remains in high demand at $ 6.7 billion in the first quarter and is already approaching halfway through $ 15.3 billion was raised in the entire last year.
Mental health was the most financed illness in the first quarter, as it has been since 2017, also because these services are often combined with a broader range of products, for example with telemedicine companies such as Doctor on Demand and Amwell.
In addition to the rounds raised by Lyra, this also includes some mental health companies that have raised funds so far Better Up, which raised $ 125 million;; Ginger, which raised $ 100 million; Vida Health, which raised $ 110 million; CirrusMD, which raised $ 20 million; Talkiatry, which raised $ 5 million; Concert Health, which raised $ 14 million; and NeuroFlow, which raised $ 20 million.
(Image source: lyrahealth.com)