Hinge Health, a developer of wearable bands with motion sensors that help employees recuperate from musculoskeletal problems such as the lower back, knee, shoulder, and neck pain, raised $90 million in Series C funding.
Hinge Health has now raised over $120 million since 2017, including an $8 million in Series A funding in 2017, and a $26 million in Series B funding in 2018.
“As pioneers in digital MSK care, we’re excited to continue re-defining best-practice care for patients with back or joint pain – conditions so pervasive that we all know someone affected,” said Hinge Health CEO and Co-Founder Daniel Perez, in a company press release. “We’re also really proud there was so much interest in this round from our existing investors, who know us best.”
Bessemer Venture Partners led the financing round with participation from Lead Edge Capital and existing investors Insight Partners, Atomico, Heuristic Capital, 11.2 Capital, and Quadrille Capital.
Hinge Health will use the new funds to strengthen its marketing position and expand its offerings across the musculoskeletal care continuum, accelerate employer and health plan market growth, and further surgery prediction and member support. As part of the investment, Steve Kraus, Partner at Bessemer Venture Partners, will join the Hinge Health board.
According to the company musculoskeletal conditions continues to be the main cost driver in America’s healthcare practice, consuming 1 in 6 healthcare dollars. The majority of the spend is driven by chronic musculoskeletal conditions, which lead to the overuse of elective surgeries and opiates.
“Our members were suffering in silence. We turned to Hinge Health because the status quo wasn’t working, and we needed to provide another option. Since partnering with Hinge Health, we’ve seen over a thousand employees and family members reduce their pain and chance of surgery,” said Joe Toniolo, Senior Director of Health & Welfare at US Foods, whose 40,000+ members all have access to Hinge Health.
“US employers and health plans are looking not just for outcomes, but also meaningful engagement and – critically – enterprise experience and maturity. That’s why we’ve invested in Hinge Health. Rarely have I seen customers more enthusiastic about a product. In all of my customer reference calls (and there were many), the praise for Hinge Health’s product and especially their ease of implementation was universal – which explains why they’ve never lost a customer,” said Steve Kraus, Partner at Bessemer Venture Partners, in a company press release.
In 2019, global VC funding for the Digital Health sector came to $8.9 billion, compared to $9.5 billion in 2018, according to Mercom Q4 and Annual 2019, Digital Health Funding and M&A Report.