On Tuesday, medtech startup Hinge Health secured $90 million in Series C funding. The firm, which offers digital physical therapy products and services, has raised $126.1 million since its founding five years ago. With its new capital, the innovative company, which has over 40,000 users, has plans to initiate a significant expansion.
Hinge Health’s Offerings
The California Bay Area-based firm provides virtual musculoskeletal treatment for busy people. Traditionally, people suffering from back and joint pain attend regular sessions with the physical therapist to treat their ailments. Conversely, Hinge Health digitizes the process to make it easier for patients to receive the care they need.
The company provides its clients with a tablet computer and two wearable sensors. After setup, the patient is guided through 15-minute sessions 3 to 4 times a week. The firm’s components gather data that gives users real-time guidance during their exercises. In addition, the startup provides its clients with a coach that gives them individualized calling and email feedback and support.
Hinge Health says more than 25,000 people have completed its digital physical therapy program. As a result, the firm’s clients have experienced a 60 percent reduction in pain. Moreover, two-thirds of its users have avoided having musculoskeletal surgery. Accordingly, the startup states its combination of product/services has inspired a high degree of loyalty. Since beginning operations in 2015, the firm says it has a 100 percent retention rate.
Hinge Health’s Future Plans
While Hinge Health isn’t the only startup operating in the digital physical therapy space, it’s the most successful. The startup claims it currently represents 80 percent of the musculoskeletal therapy application sector. As such, the firm has attracted significant attention from outside investors, receiving a $26 million cash injection in 2018.
However, Hinge Health’s $90 million Series C round, led by Insight Partners, is its most significant to date.
The startup already has big plans for its newly secured capital. Specifically, the firm plans to expand the range and scope of its services significantly. To that end, the company intends to triple the size of its research and development department to advance its product roadmap. The organization plans to facilitate that growth by hiring around 200 new staffers over the next 12 to 18 months.
Furthermore, the startup has a plan to increase its footprint among self-insured employers significantly. Presently, Hinge Health has partnerships with Kraft Heinz, US Foods, Red Bull, and Walgreens. As the company’s products and services boast best in class security standards, it also wants to capture more government and utility industry contracts.
At present, the medtech firm is not profitable. However, the company tripled its annual recurring revenue last year and could become cash-positive this quarter. Nevertheless, the startup is more focused on growth and doesn’t plan on making money until its recruitment cycle is over sometime in 2021.
Because of the quality of its products and services, Hinge Health has signed up more than 40,000 people. But it wants to acquire 100,000 users by the end of this year. With its newly secured funding and thoughtful expansion being very ambitious, the startup should have no problem meeting its goals.