Digital therapeutics company for chronic conditions, Kaia Health, today announced that it closed a $26 million Series B funding round, bringing its total funds raised to date to $50 million.
The round was led by Optum Ventures, Idinvest and capital300 with participation from existing investors Balderton Capital and Heartcore Capital, as well as Symphony Ventures, an investment partnership with world number 1 ranked golfer Rory McIlroy.
WHAT THEY DO
Founded in 2016, Kaia Health is a digital therapy company that creates treatments for a range of physical disorders including back pain and chronic obstructive pulmonary disease (COPD).
Working with experts in various medical fields, the company uses machine learning to deliver app and technology interventions that aim to assist patients in self-managing their condition with digital alternatives from their home using smartphones and tablets.
WHAT IT’S FOR
Kaia Health will use the funding to drive growth of its core digital therapy platforms for people managing musculoskeletal (MSK) conditions. It will also fund expansion into new conditions such as COPD, where its digitally delivered multi-modal therapy is also clinically effective.
The company will continue to invest in its proprietary technology and build on its global 2D motion tracking, a function which claims to enable users to get real-time feedback on exercise performance using their smartphone's camera. This is in aims to eventually move towards a 3D musculoskeletal model.
Kaia Health also states that they will continue to invest in clinical research, and expand its team to accelerate employer and health plan growth.
The COVID-19 environment has driven substantial growth in demand for multi-modal virtual therapy platforms, allowing people to digitally self-manage chronic diseases from home.
Last year was a highly active year for Kaia Health; September 2019 saw them announce an $8 million funding round led by United Health’s venture arm Optum Ventures. This came seven months after the company announced that it had achieved a $10 million in a Series A funding round led by Balderton Capital.
Optum Ventures has occupied a significant presence in healthcare this year, leading other notable transactions in the area of chronic disease management. Last month, they led the digital health company Holmusk, in securing $21.5 million in Series A funding.
ON THE RECORD
Kaia founder and president Konstantin Mehl, said: “Similar to the explosion we’ve seen in doctor to patient telehealth, the healthcare challenges arising from COVID has also highlighted the need for new care delivery models.”
“This has accelerated adoption of new approaches to care, such as those we’re developing at Kaia, which were already showing great promise. We are excited by the opportunity to drive our business forward given heightened awareness of the merits of digital therapies among payers, companies, care providers and consumers, and the growing importance of delivering care in the home.”
Heather Roxborough, a partner at Optum Ventures, said: “We see tremendous need for digital therapeutic platforms that can treat chronic disease remotely, cost effectively and at scale. We are encouraged by Kaia’s initial success addressing chronic pain and their expansion into COPD, as they help people simply and effectively manage chronic conditions using devices already in a patient’s homes, including smartphones and tablets.”