Kaia Health Raises $75 Million in Series C Financing to Expand Digital Therapies and Treatments in the U.S. and Europe

Investment will strengthen company’s clinical capabilities and treatments for musculoskeletal (MSK) conditions and chronic obstructive pulmonary disease (COPD)

New York, Thursday, April 29, 2021Kaia Health, a digital therapeutics company, today announced a $75 million Series C financing round to expand clinical capabilities and transform treatment for musculoskeletal (MSK) conditions and chronic obstructive pulmonary disease (COPD) in the U.S. and Europe. Fundraising was led by an unnamed leading growth equity fund with support from all existing investors, including Optum Ventures, Eurazeo, 3VC, Balderton Capital, Heartcore Capital, Symphony Ventures (investment vehicle of golf pro and four-time Major winner Rory McIlroy), and A-Round Capital.

Kaia Health uses machine learning to deliver individualized app interventions that aim to empower and motivate patients to control and self-manage their condition with digital alternatives from their home using devices such as smartphones and tablets. Working with experts across medical fields, Kaia Health creates accessible, evidence-based treatments for a range of conditions, including back pain, COPD, and osteoarthritis.

To date, Kaia Health has raised more than $125 million from investors and continues to deliver growth. The Kaia Health MSK digital platform is the first technology in chronic disease management to provide virtual physical therapy with real-time exercise feedback to help patients manage their condition from home. The company recently launched Kaia Gateway and Premium Partners, a next-generation, complete MSK care solution for employers and health plans.

“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. “For U.S. patients, Kaia Gateway delivers better care with more sophisticated triage plus medical professionals who can help patients access the best care within the Kaia Health ecosystem.”

One in two American adults is affected by an MSK condition,[1] which results in $120 billion in direct and indirect costs annually to employers.[2] Kaia Health estimates that MSK conditions affect 25% of the U.S. workforce and account for 16% of overall medical spend. [3] Findings from the largest randomized controlled trial in the digital therapeutics industry demonstrate how a combined MSK care pathway of digital therapy, personalized health coaching, and collaboration with medical providers achieved better outcomes than conventional care.

“Kaia Health is at the forefront of the digital health paradigm with its leading MSK and pulmonary solutions, which provide a seamless experience for its members that is cost-effective, remote, and scalable.”

Heather Roxborough, Partner at Optum Ventures

With this new round of funding, Kaia Health plans to grow its commercial team and accelerate product and partnership development to help more Americans access Kaia Health MSK and expand the offering to COPD care. In addition, funds will be invested in extending the offering within Europe and increasing access to Kaia Health by making its MSK and COPD available through national reimbursement systems.

References

  1.  United States Bone and Joint Initiative. The Hidden Impact of Musculoskeletal Disorders on Americans. United States Bone and Joint Initiative; 2018. 4th edition. Accessed April 23, 2021. https://www.boneandjointburden.org/docs/BMUS%20Impact%20of%20MSK%20on%20Americans%20booklet_4th%20Edition%20(2018).pdf.
  2.  Nobel J, Sherman C, Sasser E, Pickering L. Preventing and Treating Musculoskeletal Disorders: New Strategies for Employers. Northeast Business Group on Health; 2017. Accessed April 23, 2021. https://nebgh.org/wp-content/uploads/2018/02/NEBGH_MSD-Report_FINAL.pdf.
  3. Kaia Health internal data from 130+ large employers.

Further Reading