SpineZone is the latest health tech startup to raise millions in the musculoskeletal space

SpineZone is a startup that creates personalized exercise programs and treatment for neck and back pain. The company uses an online platform and in-person clinics to deliver a curriculum that, ideally, helps patients avoid the need for prescription drugs, injections and surgeries, and providers then avoid the cost of all of the above. Co-founded by brothers Kian Raiszadeh and Kamshad Raiszadeh, the company tells TechCrunch that it has raised $ 12 million in a Series A round led by Polaris Partners and Providence Ventures, with participation from Martin Ventures.

At its core, SpineZone is a virtual physical therapy platform augmented by in-person clinics. The latter bit is important because it takes a video repository, which has health outcomes baked into it, and helps get those same users some real-life support.

Patients can log onto the site, either through smartphone or laptop, and then answer a series of questions around pain and risk factors. Then, patients can go through a series of exercises. These exercises are created in tandem with professionals, and are based on peer-reviewed and evidence-based articles on musculoskeletal health.

Beyond this digital archive of videos, SpineZone offers an in-person clinic option to help patients practice these exercises. Off of this strategy, the startup claims that it has “1 million lives under management.”

SpineZone’s value proposition is that it helps payers and providers, whether that be employers, clinics or health plans such as Cigna or Aetna, avoid placing their patients in surgeries, which are expensive. By taking care of pain issues before they bubble up, SpineZone says that its current partners have been able to have a 50% reduction in surgery rate (it’s worth noting that COVID-19 could also play a role in this because it is high-risk to enter a medical facility).

Partners are happy because footing the bill of a non-operative procedure is remarkably cheaper than a non-operative procedure.

The cost saving that a medical center could endure can be in the millions. For example, the Sharp Community Medical Group saved $ 3.4 million in cost savings after working with SpineZone for two years.

SpineZone’s business model is a smidge more complicated than your classic SaaS fee. For example, it charges a clinic based on the number of members it serves per month, and also shares in the downside. For example, if SpineZone promises to get a clinic to $ 12 million in spend from $ 15 million, and the cost ends up being $ 17 million, the company will pay the clinic a portion of the difference. Alternatively, if SpineZone got the clinic to $ 10 million, even below estimates, it shares in the upside.

SpineZone joins a cohort of health tech startups that focus on musculoskeletal conditions. Venture-backed competitors include Peerwell, Force Therapeutics and Hinge Health, which was most recently valued at $ 3 billion, with plans to go public.

In order to win, many startups, SpineZone including, need value-based care to replace fee-for-service care. Value-based care is the idea that doctors are paid for outcomes instead of the number of times you enter a doctor’s office. The end goal is that this format creates monetary incentives around getting to an outcome faster: If a doctor is going to make $ 30,000 on fixing a knee, regardless of whether it takes two appointments or 20 appointments, they might as well do a more thorough job upon check-up instead of elongating the process. The flipside of this, of course, is that doctors might optimize for outcome volume and speed rather than the quality of the result itself.

While SpineZone’s early traction is promising, the healthcare ecosystem still has a ways to go before value-based models take precedence. Right now, Kian Raiszadeh estimates that 10 to 20% of revenue in a medical center comes from value-based care. SpineZone is projecting that it will get to 50% of revenue in the near future.

“And that’s the biggest evolution and tallest lift that we’re expecting,” he said.


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Startups – TechCrunch

Oscar Health raises IPO price as Coupang releases bullish debut valuation

Investors appear excited to buy shares in impending public companies Oscar Health and Coupang. TechCrunch covered both extensively during their ramp toward the public markets, and more recently regarding their IPO march. And now, with a combined valuation well above $ 50 billion, both public offerings should make a splash.

And in good news for their respective investors, recent pricing points to an IPO market that remains enthusiastic about new listings, despite some recent chop among public technology equities.


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The valuation news from Coupang and Oscar Health bodes well for other impending offerings, including a host of SPAC-led flotations and the coming direct-listing of cryptocurrency giant Coinbase.

This morning, let’s collect pricing news on both Coupang and Oscar Health, eat some modest crow in the case of the latter and prep ourselves for the next two unicorn public offerings.

These companies will soon convert tens of billions of dollars of illiquid private shares into public currency. As such, their offerings may reveal investors’ sentiments regarding e-commerce and insurance companies backed by venture capital.

Oscar Health and Coupang’s IPO pricing

As TechCrunch reported this morning, South Korean e-commerce player Coupang could be worth as much as $ 51 billion in its IPO if its first debut price range of $ 27 to $ 30 per share holds up; the price range matches earlier expectations for the company, which recorded revenues of $ 11.97 billion in 2020, up more than 90 percent from its year-ago results.

Oscar Health’s new IPO price range is even more interesting than Coupang’s first. The insurance startup’s first IPO pricing interval of $ 32 to $ 34 per share valued the company at a midpoint, full-diluted price of around $ 7.7 billion. Its range is now $ 36 to $ 38 per share, more than modestly higher than its prior target price range.

Startups – TechCrunch

London-based health clinic for men Numan acquires Swedish health company Vi-Health

Today London-based men’s health startup Numan has announced its acquistion of Vi-Health, a pioneering medical science and healthcare technology company based in Sweden. Launched in February 2019, Numan helps men take action when it comes to their health and wellbeing. According to the startup, recent findings show that 3 out of 4 men don’t go to…

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[CropX in PR Newswire] CropX Addresses Critical Soil Health Challenge – Develops Advanced Fertilizer and Salt Monitoring Capability

TEL AVIV, Israel, Feb. 22, 2021 /PRNewswire/ — CropX, a global leader in soil analytics for agriculture, today announced a significant advancement in soil sensing technology: the ability to accurately and continuously monitor soil fertilizer and salt levels. Adding another level of data insight to its ag analytics platform, CropX scientists have created a solution to precisely detect fertilization events, salt concentrations and fertilizer movements throughout the soil.

Read more here.

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Amsterdam-based Founda Health raises €12.3M to build infrastructure for global healthcare sector; here’s how

Founda Health

Founda Health is a technology company that builds infrastructure for the global healthcare sector. Today, this Amsterdam-based company has announced that it has raised $ 15M (nearly €12.3M) from a group of healthcare and fintech entrepreneurs.

According to the company, this investment would help the company with international expansion, along with financing further development of the platform and integrations with Electronic Health Record (EHR) systems.

Platformisation

Founda Health is based on the platform model and brings it from the fintech to the healthcare sector. It creates a bridge between the systems used by healthcare providers and innovative health applications around the world. It claims that this is the easiest way for collaboration between systems and providers, without high set up or maintenance cost. 

“Platformisation is a proven model from fintech and other industries to radically cut costs and boost innovation. An example: it requires multiple fintech solutions in the background to technically integrate, collaborate and process a secure credit card transaction. Nowadays, this process of making a payment, is very intuitive for the consumer,” Founda Health explains in a press release. 

“The same connectivity, collaboration and security standards are currently being introduced by Founda to healthcare, combined with a completely new business model,” it adds.

The Foundation

Founda Health was founded in 2019 by serial tech entrepreneur Jan Joost Kalff. Before founding Founda Health, Kalff co-founded a company called Dimebox, which was acquired by a US-based company. Talking about why he created Founda Health, Kalff tells Silicon Canals, “After selling Dimebox to a large US-based payment company, I had seen first-hand the positive impact it can have on an industry and the end-user when platforms are introduced. With many lessons learned in the pocket, we came up with Founda.”

He further adds, “In the beginning, it was industry agnostic, and we took our time to truly build a strong FOUNDAtion ;). Because we were sure that our API was going to serve a legacy industry, meaning the platform needed to have a strong and extremely secure foundation to serve well. Too often you see start-ups trying to close new business and making complex integrations before designing a scalable solution, cutting the corner early in the build will for sure result in scaling problems later in the process.”

Although the company, launched just under two years ago, managed to secure a significant seed stage investment, it has not been all smooth sailing for Founda Health. It faced several initial challenges while setting up the firm. “The initial challenges were all about introducing a way of thinking around healthcare IT, and finding the rebels in the market who were willing to make a change and take a leap with us. Our luck has been that we already proved ourselves in fintech by building a gateway and handling highly sensitive data,” says Kalff.

The process behind the platform 

Founda Health’s platform is used by healthcare IT systems, applications and organisations of every size – from startups to large hospitals – for connectivity. It builds scalable infrastructure into healthcare IT systems, consolidating a variety of data standards into a single API. 

The company claims its success-based pricing model enables for faster collaboration between hospitals and healthcare applications. The platform enables hospitals and doctors to collaborate with health apps and exchange data. They can select their preferred applications and test and implement them into their workflows with Founda Health’s platform without any costs. 

“The Founda Health service will always be free for healthcare providers and they can request an unlimited amount of connectivity. Our partnerships with EHRs allow for this new form of collaboration. Our health API provides a pay-per-usage payment model, so we get a fee based on the successful usage of our API, which we share with our partner systems,” says Kalff.

“The past year we’ve seen a steep rise in demand from international systems and health apps for our platform model since the economics and shifting dynamics create a no-brainer for them. Hospitals can start to pick and choose apps to collaborate with and eventually the patient benefits from this development,” he adds. 

The company claims to help healthcare applications scale by connecting them with international EHR systems and opening new markets for them, enabling hospitals to choose the best possible apps from a big offering. For the EHR partners, it takes care of all required localisation per market. 

Growth & Expansion

Kalff tells SC that the company is already connected with one of Europe’s largest EHR systems and it will soon announce its partnership with one of the largest globally. “We are currently building integrations with some of the largest EHR systems in the world. This enables us to collaborate with healthcare organisations worldwide. Being a young company, we are very agile and usually decide the long-term strategy based on learnings from experiments. We are now setting up experiments for a number of markets (eg. UK, Belgium, Germany) and we will expand where we see the most traction.”

Currently, it has a team strength of 25 and has 50 roles open in all teams – engineering, product, sales, marketing, and HR.

Startups – Silicon Canals

Bringing jobs and health benefits, BlocPower unlocks energy efficiency retrofits for low-income communities – TechCrunch

Bringing jobs and health benefits, BlocPower unlocks energy efficiency retrofits for low-income communities  TechCrunch
“nigeria startups when:7d” – Google News

[BrainQ in MobiHealthNews] Sharecare’s SPAC confirmed, BrainQ’s Breakthrough Device Designation and more digital health news briefs

BrainQ, an Israeli company that uses AI to deliver electromagnetic field therapy to stroke patients through a wearable device, announced last week that its system has received Breakthrough Device Designation from the FDA.

Read more here.

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[Nanomedic in Health Europa] Rambam Hospital adopts Nanomedic’s Wound-Healing Spincare System

The largest medical centre in Northern Israel is now using the world’s first portable electrospinning Wound Treatment System to treat thousands of patients.

Read more here.

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[Kryon in Yahoo Finance] Kryon RPA Streamlines Gathering and Processing of Critical COVID-19 Data for Brazil’s Ministry of Health

NEW YORK, Feb. 16, 2021 /PRNewswire/ — Kryon®, the pioneers of full-cycle automation with an innovative approach to robotic process automation (RPA), process discovery and analytics, today announced the success of its Full-Cycle Automation Suite in assisting Brazil’s Ministry of Health to collect, process validate, refine, and distribute data relating to the COVID-19 pandemic.

Read more here.

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