Funding led by Boomerang Ventures will fuel Aware Health's expansion of tele-rehab services, advanced diagnostic algorithms, and AI-driven platforms to reduce healthcare costs and improve outcomes in musculoskeletal care.
SAN FRANCISCO, CA / ACCESSWIRE / October 10, 2024 / Aware Health, a leading innovator in value-based musculoskeletal ("MSK") solutions, today announced the successful close of a $3 million seed funding round. This round was led by Boomerang Ventures with participation from Bright Ventures, Suncoast Ventures, Tidal River Fund, Impulsum Ventures, Techstars, and pivotal angel investors. The funding will accelerate Aware Health's mission to accurately diagnose employees' and their families' orthopedic issues and provide modern mind-body care that reduces healthcare costs for self-insured employers.
"We founded Aware Health to empower employers to help their members get to the root causes of their symptoms to live resilient, pain-free lives by avoiding going into surgeries that, in research, are no better than doing nothing at all," said Heidi Ojha, CEO and Co-founder of Aware Health. "By addressing orthopedic issues early and efficiently through our innovative value-based approach, we help members recover faster, decrease missed work days, and increase productivity, resulting in millions of dollars of healthcare savings for our clients. Our company has recently doubled the number of eligible members to over 15,000."
Aware Health leverages proprietary algorithms to guide clinicians in diagnosing orthopedic conditions virtually, upstream, with same-day availability, avoiding unnecessary imaging and surgeries downstream. This early intervention approach has led to a 59% reduction in orthopedic healthcare claims, as reported in a peer-reviewed study.
Delivering Proven Results: Saving Millions Through Early Intervention
95% of patients with wear-and-tear conditions intending to undergo surgery do not end up in surgery.
An average of 6.19x ROI saved in lifetime healthcare costs for clients.
A Growing Opportunity: The Expanding Market for MSK Care
One in two adults, an estimated 126.6 million Americans, are affected by a musculoskeletal condition, according to research.
MSK diseases in the U.S. cost more than $300 billion annually in direct healthcare expenditures and lost productivity, studies indicate.
"In a crowded MSK market, Aware Health sets itself apart from industry giants with its built-in diagnostic rules that improve the accuracy of the PT diagnosis," said Ojha. "While competitors focus on enhancing exercise form through motion sensors, Aware Health leverages advanced diagnostic algorithms to ensure that employees receive the right treatment from the beginning, leading to better patient outcomes and reduced costs for employers. We are using the funds to build out our AI models, a new patient and provider engagement platform, and comprehensive employer dashboards to expand our reach and impact in helping more people get the care they need."
Oscar Moralez, founder and managing partner of Boomerang Ventures, joined the Aware Health board following the investment. "This investment marks a significant milestone for Boomerang Ventures as we expand our portfolio beyond 'middle America' and reinforce our commitment to supporting women-led companies. Aware Health is the fourth such company in our portfolio. Aware Health is uniquely positioned to disrupt the healthcare system with its direct-to-employer model and innovative approach to musculoskeletal care. The company's ability to deliver significant cost savings while improving the quality of care for members is exactly the kind of solution we look to support," said Moralez.
Angel investors Paul Johnson, ex-CEO and founder of Lemonaid Health, and Sachin Bhat, former co-founder of Scribe, also participated in the funding round. Johnson, whose company Lemonaid Health sold to 23andMe for $400M, is a seasoned healthcare entrepreneur, and his extensive expertise in scaling healthcare startups will be instrumental as Aware Health expands its market reach. Rippling acquired Bhat's company, Scribe, after which he served as Head of Engineering at Rippling, bringing deep technical expertise in engineering and product development, further strengthening Aware Health's leadership with a board seat, as the company continues to innovate and grow.
With the additional funding, Aware Health plans to expand its reach to more mid to large-sized companies across the U.S., addressing the growing demand for accessible and effective MSK care. The company's solution helps employees and their families recover faster and addresses the healthcare system's capacity challenges by providing remote care options that keep workers healthy and on the job.
About Aware Health
Based in San Francisco, CA, and founded in 2020, Aware Health is a female-led healthcare partner that shakes up the insurance-based paradigm with a modern solution: direct-to-employer, on-demand MSK management so members stay out of the medical system, working productively, and getting better faster. Employers partner with Aware Health and subscribe at a per-member rate. Members with MSK symptoms see a licensed Doctor of Physical Therapy the same day through tele-rehab. Almost all members can be accommodated by video call. Employers champion safety and Aware Health treats pain before it intensifies, thereby preventing significant injuries before they occur. Learn more at awarehealth.io.
About Boomerang Ventures
Founded in 2019, Boomerang Ventures is a venture capital firm focused on early growth-stage connected health technology companies. Leveraging a combination studio and venture fund, Boomerang provides the collaborative direction, deep industry expertise, and continuum of support founders need to take their innovations from ideation to market. Boomerang believes that better patient care begins with identifying and solving the biggest challenges in healthcare.
Boomerang Ventures is proudly and strategically based in Indianapolis, where the healthcare and entrepreneurial business climate is a thriving community ripe with opportunities. With a secure niche at the intersection of health technology, studio-fund synchronization, and the Midwest, Boomerang differentiates itself from the competition. Boomerang Ventures is Healthcare Innovation, Reimagined. For more information, visit Boomerang.vc.
About Bright Ventures
Bright Ventures is a venture capital firm that invests thematically in inclusion, led by Founding and Managing Partner, Lenore Champagne Beirne. Bright invests in Pre-Seed and Seed-stage ventures that will redefine the largest, highest-impact markets: fintech, digital health, and the future of work. The firm specializes in spotting and scaling leaders who can expertly fill gaps in large, mature markets.
Bright Ventures is supported by a decade-old strategic advisory firm, the premiere partner for leveraging inclusion as a competitive advantage in the innovation economy. Portfolio companies benefit from programs and events in Bright's diverse and active community of operators, investors and founders. For more information, visit https://www.brightventures.io/
Media Contact:
Audra Wait / Wait & Co.
On behalf of Aware Health and Boomerang Ventures
audra@waitandco.com
SOURCE: Aware Health
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