Hinge Health raises $300M at $3B valuation as #1 Digital Clinic for back and joint pain; revenue quadrupled year over year
Fundraising jointly led by Coatue Management and Tiger Global raises valuation of Hinge Health to $3B, one of the highest valuations for a private digital health company. A landmark year for Hinge Health: in 2020, the customer base tripled, revenue quadrupled, and customer retention held at 100%.
SAN FRANCISCO, Jan. 7, 2021 /PRNewswire-PRWeb/ -- Hinge Health is announcing a $300M Series D round to expand clinical capabilities as an end-to-end Digital MSK Clinic for all back and joint pain care. The fundraising was heavily oversubscribed and jointly led by Coatue Management and Tiger Global with participation from existing investors Atomico, Insight Partners, Quadrille, 11.2 Capital, Lead Edge Capital, Bessemer Venture Partners, and Heuristic Capital.
The deal values Hinge Health at $3B, making it one of the highest-valued privately held digital health companies in the United States. As Americans accelerated digital healthcare adoption during the pandemic in 2020, Hinge Health's customer base tripled, revenue quadrupled, customer retention continued at 100%, and Q4 alone saw a 937% growth in added covered lives. Hinge Health is the market leader and chosen by 4 in 5 employers with a digital musculoskeletal (MSK) solution.
Hinge Health is the only Digital MSK Clinic to go beyond digital physical therapy and to deliver the industry's most complete clinical care model, surrounding members with access to physical therapists, physicians, health coaches, and technology such as wearable sensors to guide exercise therapy. The Digital MSK Clinic has dedicated programs for every population's needs, from prevention to post-surgery. Hinge Health currently works with Fortune 500 companies like Boeing and 300+ health plan, employer, and public sector customers.
"Hinge Health is eliminating variability in healthcare quality and instead delivering better outcomes through consistent digital-first clinical care no matter where a person lives across the country," explained Hinge Health CEO and Co-Founder Daniel Perez. "We are investing in deepening our MSK clinical capabilities by building advanced technologies and tripling our clinical team of doctors, physical therapists, and health coaches."
Lucas Swisher, partner at Coatue Management, shared, "As the shift toward virtual healthcare condensed from an expected timeline of years to a matter of months, we saw how well Hinge Health responded and reacted. 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."
Scott Shleifer, partner at Tiger Global Management, said, "We have spent a lot of time evaluating the digital MSK space, and Hinge Health has not just won the category, they created it and continue to move it forward."
Joe Toniolo, Senior Director, Health & Welfare Plans at US Foods and a Hinge Health customer said, "Our goal is to simplify the healthcare process and provide a seamless experience for our associates with one single and easy point of access. As a leading food service distributor, MSK is a cost driver for our workforce. By providing care along our associate's entire MSK journey from prevention to post-surgery, Hinge Health's Digital MSK Clinic provides a simple and comprehensive service that results in desired outcomes that reduce pain and surgery at no cost for our associates."
In 2020, researchers from University of California San Francisco (UCSF) and Stanford published a 10,000+ longitudinal cohort study that clinically validated that Hinge Health led to better outcomes, with each participant reporting an average 69% reduction in pain (the equivalent of four times more pain reduction than opioids) and 58% reduction in depression and anxiety. Hinge Health participant adherence at 12 weeks was 73%, which is three times higher than the industry average. Moreover, a long-term outcomes study showed 70% of Hinge Health participants continue to do their exercise therapy on their own 2 years later, resulting in lasting behavior change and pain relief.
Concrete ROI has been repeatedly demonstrated in studies, including a peer-reviewed randomized control study that found that Hinge Health avoided two of three surgeries for participants. A medical claims study conducted by US Foods, a leading food service distributor, found that MSK surgery spend decreased by 56% for Hinge Health participants compared to a 30% surgery spend increase for non-participants. A three-year medical claims analysis with a California-based employer covering 30,000+ members demonstrated total MSK spend savings of $4,523 per Hinge Health participant.
About Hinge Health
Hinge Health is pioneering the world's most patient-centered Digital Clinic for back and joint pain. Our Digital Clinic is the #1 musculoskeletal (MSK) solution for employers and health plans. Available to over 300+ enterprise customers, Hinge Health empowers people to reduce chronic pain, opioid use, and surgeries. Learn more at http://www.hingehealth.com.
About Coatue Management
Coatue Management, L.L.C. is a global investment firm with offices in New York, Menlo Park, San Francisco, and Hong Kong. The firm manages ~$16 billion in assets on behalf of individuals, nonprofit organizations, and institutional investors by focusing on high-growth investments in the technology, media, and telecommunications spaces in both the public and private markets. Its investment approach consists of making a small number of investments based on rigorous proprietary research. It looks to have a multiyear holding period, an approach which has led to uncommon returns for its investors through a broad range of market conditions since 1999.
About Tiger Global
Tiger Global Management, LLC is an investment firm focused on public and private companies in the global internet, software, consumer, and financial technology sectors. Since 2003, its private equity business has invested in hundreds of companies across more than 30 countries, including investments ranging from Series A to pre-IPO. Such investments have included Spotify, Harry's, Warby Parker, Peloton, JD.com, Facebook, LinkedIn, Yandex, Mail.ru Group, Despegar, Ola, and Flipkart. Tiger Global Management, LLC, was founded in 2001 and is based in New York; it has affiliate offices in Hong Kong, Singapore, Bangalore, and Melbourne.
About Musculoskeletal Conditions
More than one in two American adults suffer from MSK conditions. MSK represents one sixth of all spending in the US healthcare market and is the top cost driver of healthcare spending, equating to a total addressable market estimated at over $300B. The shift to working from home in the last year has aggravated the issue, with 70% of employees reporting that their MSK pain has either gotten worse or they are experiencing new pain since making the switch to remote working.
Media Contact
Betsy Yates, Hinge Health, 415-349-7757, [email protected]
SOURCE Hinge Health
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