As financial news goes, the August announcement by Lyra, a California-based behavioral health benefits provider startup, that it had raised more than $110 million in funding barely caused a ripple. The deal took Lyra’s total funding to $292 million and its valuation to more than $1 billion, the company reported.
The larger story was what Lyra plans to do with its growing financial backing. The company, which provides mental health benefits to more than 1.5 million U.S. employees and dependents, said it will use the funding to invest further in technology-enabled services, to partner with more customers and to expand and diversify its provider network.
The news was also significant in a broader financial context in the digital health sector. It helped push the number of third-quarter health care financing megarounds — funding rounds of $100 million or more — to the highest level in nearly three years. That this