Venture Capital News: Hinge Health Secures $90M
SAN FRANCISCO, CA, Hinge Health, the leading digital musculoskeletal (MSK) solution, today announced a $90 million round of funding.
The round was led by Bessemer Venture Partners, with participation from Lead Edge Capital and all existing investors: Insight Partners, Atomico, 11.2 Capital, Quadrille Capital and Heuristic Capital.
This funding round positions Hinge Health to continue to expand its already commanding market leadership position amongst self-insured employers and health plans, with Hinge Health holding an over 80% market share. Steve Kraus of Bessemer Venture Partners will be joining the board. Bessemer's portfolio contains over 120 IPOs across consumer, enterprise, and healthcare. Hinge Health will use the funds to expand across the MSK care continuum, accelerate employer and health plan market growth, and advance surgery prediction and member support.
MSK conditions continue to be a leading cost driver in America's healthcare system, consuming 1 in 6 healthcare dollars. The majority of the spend is driven by chronic MSK conditions, which lead to overuse of elective surgeries and opiates. 4 out of 5 employers with a digital MSK solution have partnered with Hinge Health to reduce medical spend. Hinge Health pioneered pairing sensor technology with physical therapists and 10x more health coach member support to achieve 74% program adherence - the industry's highest rate. Hinge Health is the only digital MSK solution with clinically validated outcomes across 4 peer-reviewed studies, showing 2 out of 3 surgeries avoided and significant reductions in chronic pain, opioid use, anxiety, depression, and absenteeism.
2019 was a banner year for Hinge Health. Revenue and customer base both tripled in the final 6 months of the year, and revenue is poised to triple again in 2020. Moreover, Hinge Health's strong clinical outcomes and enterprise readiness have resulted in 100% client retention over 5 years.
"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. "We're also really proud there was so much interest in this round from our existing investors, who know us best."
"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.
About Hinge Health
Hinge Health is pioneering the world's most patient-centered digital hospital, starting with musculoskeletal health. The company's back and joint pain care pathways combine wearable sensor-guided exercise therapy with behavioral change through one-on-one health coaching and education. Hinge Health is the number one musculoskeletal solution for employers and health plans. Available to millions of members, the company empowers people to reduce chronic pain, opioid use and surgeries. Learn more at http://www.hingehealth.com.
About Bessemer Venture Partners
Bessemer Venture Partners is the world's most experienced early-stage venture capital firm. With a portfolio of more than 200 companies, Bessemer helps visionary entrepreneurs lay strong foundations to create companies that matter, and supports them through every stage of their growth. The firm has backed more than 120 IPOs, including Pinterest, Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, PagerDuty, DocuSign, Wix, and MindBody. Bessemer's 15 partners operate from offices in Silicon Valley, San Francisco, New York City, Boston, Israel, and India. For more information, please visit http://www.bvp.com.
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