A behavioral health startup founded by Facebook’s former CFO raised $75 million in new funding. Lyra Health, which connects employees to therapists and other providers through its platform, has now raised more than $175 million to date.
Institutional Venture Partners (IVP), a late-stage venture capital firm, led the funding round, with participation from Meritech Capital Partners as well as past investors Casdin Capital, Providence Ventures, Venrock and others.
Burlingame, Calif.-based Lyra plans to use the new funds to build out its technology and expand its network of mental health providers.
The startup offers its services as a benefit to employers, with eBay, Uber and Genentech as a few of its customers. It has grown to 1 million users since CEO and Founder David Ebersman started the company in 2015. He worked for Genentech for 15 years, serving as CFO of the company, before taking Facebook through its IPO. He also has served on the board of another digital health startup, Castlight Health.
How it works, is users fill out information about their symptoms, severity and preferences, and receive personalized recommendations. They have the option to conduct telehealth visits with therapists, in-person visits, and access tools and exercises for self-care.
“Our belief is that for too many clients, the existing traditional experience of finding mental healthcare can be quite difficult. It’s hard to find a provider who is open to new patients and who knows what treatment is right for you,” Ebersman said in a phone interview. “With Lyra Health, you can in a pretty simple and easy way look at a group of providers and their availability, and you can find one that has availability that matches your own.”
The startup contracts with provider networks that offer evidence-based care, which it hopes to be able to grow with the new funding.
“Considering the complexities and challenges associated with mental health care today – especially for employers – we need to embrace new approaches to care that are laser-focused on quality, evidence, and measurable member improvement. Lyra Health does just that, and we are proud to partner closely with them on their journey to transform mental health care,” Somesh Dash, a general partner at IVP, said in a news release.
Photo credit: Evgeny Gromov, Getty Images