Digital substance use disorder platform Kyros has raised another $10.5 million in funding, public records reveal.
This new infusion of capital brings the company’s total raise to roughly $17.3 million. Founded in 2021, the Minneapolis, Minnesota-based startup provides a marketplace to help patients with SUD find a network of treatment providers.
The company also works with treatment centers and community, nonprofit, and government agencies caring for individuals with SUD. Specifically, Kyros offers providers administrative services, including billing and helping with insurance claims.
This funding comes as rates of SUD have continued to spike in the wake of the COVID-19 pandemic. The CDC reports that 40.3 million people in the U.S. over the age of 12 have had an SUD in the last year.
Behavioral Health Business has contacted the company’s CEO and founder, Daniel Larson for comment.
Last year, Kyros announced a $4.4 million Seed funding round led by Rally Ventures. At the time of the announcement, the team said the money would help the company build its infrastructure, grow its leadership and technology team, invest in legal analysts and hire an engineering team.
“We are extremely proud and excited to take what we’ve built in Minnesota and expand access to additional states,” Larson said in the 2022 funding announcement. “Today, with more than 90% of people with substance use disorder (SUD) not receiving any treatment, support services are desperately needed. Many factors contribute to this including barriers related to cost, accessing treatment, insurance confusion and lack of community support. Kyros’ digital marketplace removes these obstacles, connecting all the constituencies so they can collaborate and focus on the work of recovery.”
This new funding is an exception to the digital health investment trends in 2023. Digital health funding in 2023 is on track to dip to pre-pandemic levels, according to a report by Rock Health. That’s after behavioral health tech investment dropped by 56% in 2022 compared with 2021.
Still, some companies have managed to raise substantial capital this year. For example, pediatric behavioral health provider Bend Health raised $32 million in March, digital behavioral health benefits company Spring Health closed a $71 million funding round in April, and virtual mental health care company Octave announced a $52 million Series C round in June.