Kaia Health is announcing a $75 million Series C round (total raised to date: $125 million) to expand clinical capabilities and transform the treatment path for Musculoskeletal (MSK) and Chronic obstructive pulmonary disease (COPD) care in the U.S. and Europe.
Fundraising was led by an unnamed leading growth equity fund with support from existing investors, including Optum Ventures, Eurazeo, 3VC, Balderton Capital, Heartcore Capital, Symphony Ventures (investment vehicle of four times Major winner Rory McIlroy) and A Round Capital.
The 2020 pandemic accelerated demand for a digital MSK solution, which saw Kaia Health grow its book of business by 600%. Globally, 60 million patients can access the Kaia Health digital MSK platform, which makes Kaia Health by far the biggest player in the digital MSK space in terms of covered lives. Its virtual physical therapy is the only technology in the chronic disease management market to provide real-time exercise feedback that has been third-party validated for its accuracy.
Kaia Health recently unveiled Kaia Gateway and Premium Partners, the industry’s most complete and cost-effective MSK care model, based on the largest randomized controlled trial in the digital therapeutics industry, which showed how a combined MSK care pathway of digital therapy, personalized health coaching, and collaboration with medical providers achieved better outcomes than conventional care. Findings validate Kaia Health’s technology-forward, high-clinical-oversight approach.
Kaia Health is one of the most funded and clinically validated digital therapeutic companies and a leader in the global digital MSK therapy space. Its $75 million funding has helped the digital health sector achieve a record-breaking start to the year. According to a Rock Health report, $6.7 billion was invested in the digital health sector in Q1 2021.
The investment will grow its commercial team and accelerate product and partnership development to help more Americans access Kaia Health MSK solution and expand the offering to COPD care. In addition, the funds will be invested in extending the offering within Europe and increasing access to Kaia Health by making its MSK and COPD solutions available through national reimbursement systems.
“Kaia Health is providing a proven MSK and COPD solution combining computer vision and human care to achieve better outcomes,” said Kaia Health CEO, President, and Founder, Konstantin Mehl. “Kaia Gateway is providing better care for patients in the U.S. with more sophisticated triage and medical professionals who can help patients access the best care within the Kaia Health ecosystem.”
One in two American adults are affected by an MSK condition, which results in $120 billion annual costs to employers. MSK conditions affect 25% of the U.S. workforce and account for 16% of overall medical spend.