Additional seed funding led by Rally Ventures will allow Kyros to expand its pioneering digital platform for recovery services into multiple new markets by the end of the year.
MINNEAPOLIS–(BUSINESS WIRE)–Kyros, the healthcare tech startup that brings providers, clients and recovery organizations together into a digital marketplace, announced today it has raised an additional $2.4 million in seed funding led by Rally Ventures, with participation from strategic angel investors. Founder and CEO Daniel Larson launched the digital technology platform for recovery services in Minneapolis this past spring. With this new funding, Kyros will continue advancing the innovation of its marketplace technology platform, expand coverage and add additional staff to its team of 40.
“We are extremely proud and excited to take what we’ve built in Minnesota and expand access to additional states. 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,” says Larson.
Born out of personal experience with addiction and recovery, Larson started Kyros to support those in all stages of recovery to ensure they continue their journey. A 15-year tech veteran, Larson realized technology could be used to coalesce the recovery community. Kyros’ digital platform helps those in recovery access a network of treatment providers and support organizations tailored to individual needs. Their services also offer support for the organizations and specialists who are helping people manage their recovery. By handling administrative services including billing and assisting with insurance claims, these practitioners and facilities have more time to work with their clients in recovery.
“With more than 30 million Americans affected by substance use disorder, the need to centralize resources is critical. Having worked in tech for 15 years, I saw many of the problems facing the recovery industry had already been solved in other industries, through technology. I am confident that by harnessing the power of technology to connect the recovery community, Kyros will realize its goal of establishing a national footprint and increasing positive outcomes for millions of Americans in recovery,” he added.
“The federal government just awarded 1.6 billion for communities addressing addiction and the opioid crisis. The recovery industry is currently a $43B industry that is poised to grow $10B in the next few years–and this is without the addition of this recent government funding. Kyros is on the cutting-edge of digital health care for those in recovery,” said Justin Kaufenberg, Managing Director of Rally Ventures. “Kyros has grown from zero to nearly 10 million in ARR since it was founded eighteen months ago. This incredible growth is proof that Kyros is working effectively as a digital solution for the recovery space, connecting the various sectors, and helping many more people in need,” he adds.
About Rally Ventures
Rally Ventures invests exclusively in early-stage business technology companies, focusing on entrepreneurs creating major new markets or bringing transformative approaches to existing ones. Since 1997, Rally Ventures’ partners and venture capital industry veterans have invested in or run early-stage enterprise business-to-business technology companies with a proven ability to deliver superior returns regardless of the overall market environment. For more information visit rallyventures.com.
Kyros is the first of its kind digital platform for recovery services, harnessing the power of technology to connect and empower clients, providers and organizations. The pioneering digital interface provides tailored experiences for clients by fostering connections in person and online with providers, and streamlines access to business services like liability insurance, billing, payments, technology, and clinical supervision. Founded in 2021 by Daniel Larson, after he encountered obstacles in his own journey with substance use disorder, Kyros’ mission is to increase positive outcomes for the millions of Americans managing their own recovery or dedicating their lives to helping others find support and wellbeing.