Lyra Health is on the brink of another huge financing raise, according to The Information, which covers the technology industry.
The online publication reported that the behavioral health unicorn is raising another $200 million in a new funding round, which will boost its overall value to nearly $4.6 billion. The Information cited two people familiar with the deal, who said the hedge fund Coatue Management is leading the financing as a new investor.
A representative for Lyra told Behavioral Health Business that the company wouldn’t be commenting on The Information’s story and that it doesn’t have any funding news to share right now.
Headquartered in Burlingame, California, Lyra is a digital technology startup contracts with employers to help them connect their workers and their workers’ families with mental health services. Lyra partners with thousands of behavioral health providers nationwide to make it possible, then uses a special algorithmic process to match users with the most appropriate provider for their needs, based on each provider’s availability and skillset.
The news comes just about four months after Lyra announced that it had raised $187 million in Series E funding, bringing its total funding raised up to about $480 million and pushing its valuation past $2 billion.
Founded in 2015, Lyra has exploded in recent years, reaching unicorn status last August amid the COVID-19 pandemic, which has accelerated the demand for and the adoption of digital health services.
The coronavirus prompted digital behavioral health investment to nearly triple in 2020, when space saw 55 deals last year for a total of about $1.8 billion, according to the digital health venture fund Rock Health.