23 January 2022 | Healthcare
2022 Digital Mental Health Funding Takes Off
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Digital mental health company Lyra Health had two big wins, scoring $235M in Series F funding and acquiring global employee assistance program provider ICAS World for an undisclosed amount of money. Lyra Health seems to have some tricks up its sleeve: can you imagine what the company is trying to do?
The Deets
Lyra Health’s latest funding round brings its valuation to $5.85B, up over $1B from its Series E round last year. So far, the company has raised around $900M. Lyra currently cares for four million patients globally while ICAS World supports 6.3M members and 1,500 companies. If you imagined Lyra wants to expand globally, then you were right: the company’s goal from its latest funding round and acquisition is to start taking over the global digital mental health market. Now, Lyra will have around 10M patients under them.
Other Players in the Arena
Lyra may be the highest-valued B2B digital mental health company. Ginger was valued at $3B at the time of its merger with Headspace, and Modern Health was valued at $1.17B last year.
Big Picture
Digital mental health funding doubled in 2021 and is now off to a great start with Lyra’s Series F round. The pandemic has also revealed gaps in mental healthcare, signaling a significant unmet need for mental health services. My take: don’t expect digital mental health funding or the launch of more mental health-focused startups to slow down in 2022.