Mental-Health Startup Lyra Health Raises $75 Million

(Bloomberg) -- Mental-health startup Lyra Health raised $75 million from venture capital firm IVP and others on Wednesday.

Burlingame, California-based Lyra sells its tech-enabled mental health platform to employers including EBay Inc., Uber Technologies Inc. and Genentech Inc. The service connects workers with care providers like therapists and mental-health coaches.

Lyra Chief Executive Officer David Ebersman, who previously served as a top executive at Genentech and Facebook Inc., said the company offers a way to get care that “doesn’t feel slow and difficult.” Customers are able to see the difference in their workforce, he said.

“We believe here that mental health is one of the defining problems of our time,” said Ebersman. “I think what we’ve discovered is employers are really ready to invest in mental health-care solutions.”

Lyra now has about 35 corporate customers, and it helped about 40,000 people find care last year, Ebersman said. This year, it expects to bring in more than $100 million in revenue, based on funds currently under contract. It plans to use the latest infusion of capital to expand its reach, network of providers and technology platform, Ebersman said.

Lyra previously raised about $100 million and was valued at about $241 million, according to PitchBook. The company declined to provide its current valuation.

To contact the reporter on this story: Emma Court in New York at ecourt1@bloomberg.net

To contact the editors responsible for this story: Drew Armstrong at darmstrong17@bloomberg.net, Timothy Annett, Rick Schine

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