Lyra Health’s blended care platform includes access to therapists and self-care tools. Photo credit: Lyra Health

The Covid-19 pandemic has drawn attention to mental health benefits, and companies are taking note. Since the start of the year, teletherapy startup Lyra Health has brought on new clients including Starbucks, Morgan Stanley and Zoom Video Communications.

Now, with $110 million in new funding, the Burlingame, Calif.-based startup plans to further its expansion.

“I think a lot has changed in 2020 in terms of employers’ focus on mental health care and the importance of mental health care for their employees. We’re really seeing that at Lyra, both heightened interest and increased urgency in making those services available,” Lyra’s CEO and co-founder David Ebersman said in a phone interview. “It feels like a very important moment for mental healthcare.”

In a normal year, most companies would wait until January to launch new healthcare benefits, he said. But this year, that’s changed.  According to a recent poll by the Kaiser Family Foundation, 53% of U.S. adults said that worries or stress related to Covid-19 have had a negative effect on their mental health, up from 39% in May.

Ebersman said Lyra had seen more patients registering with its site, and higher reported baseline scores for anxiety and depression than previous years.

“We’re definitely seeing that 2020 is taking a toll on people’s mental health,” he said.

Lyra connects users to therapists for telehealth visits, and can recommend mental health professionals based on patients’ availability and preferences. The company is also building out a “blended care” program that combines video visits with a digital platform, including self-guided exercises to help users better manage mild stress, anxiety and depression.

So far this year, the company has added 800,000 new members.

Back in March, Lyra announced a $75 million funding round. Its most recent $110 million series D round was led by Addition. Adams Street partners also participated in the round along with previous investors including former Starbucks CEO Howard Schultz, Casdin Capital and Glynn Capital.

The company also added Kerry Chandler, chief human resources officer for global entertainment company Endeavor, to its board of directors. She previously served as Under Armour’s HR chief.

Lyra plans to use the funds to continue its expansion and continue to build out its platform.

“We’re going to invest in making our solution more comprehensive, to ensure we address the full spectrum of mental health needs,” Ebersman said.