Editor’s note: This story has been updated with additional information and quotes from Hinge Health.
Hinge Health, a San Francisco company tackling musculoskeletal (MSK) health through digital programs with live virtual sessions, has wrapped up a $300 million Series D round that places its total value at $3 billion, according to a recent announcement.
The “heavily oversubscribed” round was led by Coatue Management and Tiger Global, and also included prior backers Atomico, Insight Partners, Quadrille, 11.2 Capital, Lead Edge Capital, Bessemer Venture Partners and Heuristic Capital.
WHAT IT DOES
Hinge Health sells in-home MSK therapy programs designed for individual or enterprise purchase, the latter type comprising the majority of its business. These programs range in scope to cover early-stage prevention, acute pain, chronic pain or surgical rehabilitation.
The platform guides users through MSK exercises, which are tracked using sensors to spot incorrect form. These sessions are augmented with one-on-one virtual coaching sessions with physical therapists or clinicians as needed. Further, Hinge supports self-ensured employer customers’ rollouts with integration tools, tailored adoption campaigns, and simplified billing and contracting.
The past year seems to have been good to Hinge Health. In its announcement, the company said that it tripled its customer base and quadrupled its revenue, still without shedding a single customer. This performance comes nearly a year after Hinge’s $90 million Series C, when CEO and cofounder Daniel Perez similarly touted substantial growth and more potential investors than the company could accept.
WHAT IT’S FOR
In the announcement, Perez said that Hinge Health would be using the money to deepend its MSK clinical capabilities “by building advanced technologies and tripling our clinical team of doctors, physical therapists and health coaches.”
In addition, a representative of the company told MobiHealthNews that it will be pursing new partnerships within the Medicare Advantage space. Looking further ahead, Perez told MobiHealthNews that the company’s influx of new funds have made an impact on its road to the public markets.
“We are very fortunate to have so much commercial momentum with 4 in 5 employers choosing our Digital Clinic because of how comprehensive and proven we are,” Perez told MobiHealthNews in an email. “That allowed us to raise a Series D which itself was effectively an IPO from a capital perspective. As such, we’ve got a lot of flexibility to go public on a more flexible timetable in 2022.
“While we are paying keen attention to the innovation around IPO financings, we will likely steer clear of SPACs, and go a more traditional route. Though we will not allow a traditional underpricing by bankers,” he said.
Hinge Health’s business is frequently pitted against that of Physera, a similar app-based MSK platform that combined remote consultations with guided programs. However, that startup was acquired last year by Omada Health, which sought to flesh out its digital chronic disease management offerings with support for MSK support.
Others active in the space include Sword Health, which most recently raised $9 million in the beginning of 2020; Kaia Health, which closed $26 million in June; and digital physical therapy software provider Physitrack, which acquired its chief competitor Physiotools just last month.
ON THE RECORD
“As the shift toward virtual healthcare condensed from an expected time line of years to a matter of months, we saw how well Hinge Health responded and reacted,” Lucas Swisher, partner at Coatue Management, said in a statement.
“We believe Hinge Health’s digital clinic is unique and tackling one of the biggest challenges in healthcare, and we are excited to join them on the journey.”