Founded in 2015, Hinge Health is a digital clinic specifically designed to treat musculoskeletal conditions such as back and joint pain. Hinge Health was born out of a growing need for better and innovative healthcare solutions for chronic back and joint pain.

The company has been around for a little over five years and has already hit the massive $3 billion valuation mark, so it’s time to dip into their business model and find out how Hinge Health makes money.

Hinge Health makes money by providing musculoskeletal healthcare plans to employers to purchase for their employees. The employees can access invaluable care along with tools and resources by utilizing the program.

About Hinge Health

Hinge Health is a platform that provides digital healthcare to those suffering from chronic musculoskeletal conditions. Supporting over 400 employers, the company has made its mark as a digital platform that provides assistance to employees and dependents. In doing so, Hinge Health has made physical therapy more accessible and affordable for all.

The company is built at the intersection of health and technology. The platform basically offers physical therapy and behavioral health service remotely by leveraging wearable sensors, an app, and health coaching.

Powered by science and technology, the company has 180,000 members on its platform.

Business Model of Hinge Health

Intending to reduce musculoskeletal pain with science-backed technology, Hinge Heath has quickly earned a reputation as a titan in the industry.

CEO and co-founder Daniel Perez grew concerned about the lack of aid for those suffering from the musculoskeletal disease. He realized that many sick individuals are forced to suffer in silence due to this improper care, and decided to do something about it.

Though study after study has been conducted on topics surrounding musculoskeletal health, the industry has not taken steps to adhere to their findings.

Hinge Health uses sensor technology, physical therapy, and health coaching to deliver a product that implements change. Many find Hinge Health to be the solution to their chronic pain, with the company servicing thousands in the community.

Considering 80 percent of Americans suffer from some form of chronic back or joint pain, Hinge Health takes on a heavy responsibility.

The company seeks to stray away from the typically suggested opiate and surgical solutions which are commonly ineffectively. Instead, they confront the problem by utilizing best practice care guidelines, powered by science and technology.

When asked why the focus on musculoskeletal health, Perez answers “it’s very expensive”. One-fifth of the GDP in America is spent on healthcare, with a sixth of that figure occupied by orthopedics and musculoskeletal health. Hinge Health vows to make physical therapy and support related to these conditions more affordable.

Those suffering from MSK-related conditions are often prescribed various medications and painkillers are a way to manage the disease. Hinge Health advises against this, opting for a more comprehensive approach to wellness.

Physical Therapy

While surgery is a common “solution” for many people with MSK issues, it is not the best one. Rather than pointing individuals to the surgery table, Hinge Health prescribes holistic physical therapy.

Those who join the company program quickly see the health benefit, with many able to avoid up to three surgeries. Three out of four people completing the program also see an approximate 70 percent improvement in chronic pain. This makes the program four times more effective at reducing pain than prescribed opiate medication.

Meeting with a physical therapist multiple times per week can be challenging, so Hinge Health meets members where they are. The company developed wearable sensors that guide members through their physical therapy sessions in a way that is personal to them.

For example, overweight individuals more prone to back and joint pain might seek weight loss as a healthy solution. Hinge Health goes the extra mile by educating themselves on problems unique to those who are overweight. The company integrates factors such as BMI into their program, ensuring that members are receiving care that most suit them.

The company believes that when you move better, you feel better, so they provide assistance in helping their members get moving. Many members report experiencing impactful weight loss since joining the program.

Education

Hinge Health is about more than just chronic pain management or relief.

The goal of the company is to educate members on prevention as well. Because of this, they hired physicians and physical therapists to design their prevention program. In doing so, members receive customized education regarding how to prevent injury and disease most related to their lifestyles.

Medical experts are available to guide and educate members on small questions and large concerns such as whether surgery is necessary. In such cases, Hinge Health is there to support members along their journey from pre-surgery to post.

The company invests heavily in its members by teaching job-specific exercises, lending its impressive retention rate. Their website and mobile application offer many tools and resources that teach members all there is to know about MSK health.

Behavioral Support

Hinge Health takes a very personalized approach to health coaching. Recognizing that life happens, the company developed a coaching program that fits in with each members’ lifestyle.

Mental health problems are a common tie to musculoskeletal disease that Hinge Health is committed to solving. Members enrolled in the company program experience a reduction of anxiety and depression by about 60-70 percent.

Hinge Health shares its valuable tools and resources in order to provide ample support to the often-overlooked MSK community.

The company tripled its customer base in 2020, with a customer retention rate held at 100 percent.

How Does Hinge Health Make Money?

Hinge Health makes money from its digital healthcare plans purchased by employers. 1 out of 6 dollars (16.67%) spent in healthcare, is spent on back and joint pain. As a chronic condition management company, Hinge Health vows to provide an invaluable service to an underserved community.

The platform and program are available through employer-sponsored healthcare plans. In the U.S., approximately 160 million people acquire health care through their employer, a large market to tap into. The program is covered by most insurance plans so, for many, Hinge Health is completely free to use.

Hinge Health knows their worth and wants members to as well. The program is outcome-based which is why cost tends to vary from person to person. The company believes in a satisfaction guarantee, with the large majority of enrollees finding the platform to be highly useful.

A Stanford study found that Hinge Health delivered more promising outcomes to those suffering from musculoskeletal conditions. While the study showed that the company program is great for pain reduction and mental health, it also proved long-lasting effects. 70 percent of members are able to maintain their physical therapy exercise two years later without the aid of a coach.

The company is definitely doing something right, with notable companies such as Kraft Heinz, Walgreens, and Red Bull joining the platform.

US Foods has more than 400,000 of its employees enrolled with Hinge Health. They also reported seeing a 300 percent increase in revenue in 2020 alone.

Hinge Health Funding, Valuation, and Revenue

Founded in 2015, Hinge Health earned an impressive $8.3 million in their first funding round led by Atomico. The company would experience rapid growth in the years to follow.

The company raised $26 million in Series B funding in 2018. This funding round was led by notable investor Insight Partners. Following the round, Insight Partners increased its investment in the company, acknowledging its growing success. With this money, the company planned to expand further efforts to solve the disparity in healthcare related to musculoskeletal diseases.

With the majority of individuals remaining at home due to the COVID-19 pandemic, Hinge Health found an increase in interest. More than ever, people began opting for digital health care services to avoid. Even in the midst of a pandemic, the company saw extreme growth. In 2020, Hinge Health quadrupled their revenue at 300 percent, establishing themselves as a major player in the industry.

The company earned $90 million in funding in their series C funding round, bringing them to a $420 million valuation. Recognizing their rising success, investors quickly decided it wise to be a part of their journey.

This year, the company was able to earn $300 million in their series D funding round led by Coatue Management and Tiger Global. Thanks to investors, Hinge Health earned a $3 billion valuation, an increase six times larger than the previous valuation. This valuation helped them achieve one of the highest valuations for a privately owned digital health company in America.

The company surpassed $100 million in revenue according to a report from Reuters. They expect to double that figure in no time recognizing a recent shift towards digital healthcare. In addition to this, the company recently announced plans to go public, aiming for a date sometime in 2022.

The company has earned a total of over $426 million in funding to date. It is becoming increasingly more likely that their trajectory is to surpass that in the coming years. Based on their booked pipeline, Hinge Health expects their revenue to triple once more by the end of this year.

Is Hinge Health Profitable?

Hinge Healthcare is a health startup with a vision. The company is not profitable yet, however, the team is committed to improving the lives of individuals across the world by digitally connecting them to top-notch healthcare.

Since its start in 2015, Hinge Health has been gaining speed, creating a name for itself in the industry. The company is projected only to gain more momentum, opening to the public sometime in 2022.

With an impressive track record to back them up, Hinge Health is most certainly positioning itself for great success on the road ahead.

Conclusion: How Does Hinge Health Make Money?

So, there you have it – We dug deep into their business model and found out how Hinge Health generates its revenue.

All in all, Hinge Health seems to be a company worth investing in. It’s got brains, it’s got the brawn, and it has already shown its potential in such a short span of time.

Thanks for reading this article. We hope you gained insight into the inner workings of Hinge Health. Do you have any questions? If yes, drop us an email, and we’d love to answer them.

And lastly, if this post helped you in any way, please share it with a friend or family member that could benefit from it as well!

Thanks for visiting, and have a great day!

How Does Ginkgo Bioworks Make Money? (Business Model)

How Does 23andme Make Money? Business Model of 23andme

How Does Verily Make Money? Business Model of Verily

Founded in 2013, BetterUp is a mobile platform for personal growth and professional development with the mission to empower individuals with the necessary tools and resources to help them achieve professional success. 

But how does BetterUp makes money? Are you curious to learn about their business model? If so, this is exactly what this article is all about. Here, you’ll take a closer look at their business model and learn about the different ways BetterUp generates revenue.

BetterUp is a fast-growing company that makes money through membership fees to access its multi-faceted corporate training and education platform. This helps companies drive new levels of engagement and performance from their employees.

About BetterUp

BetterUp is a platform that provides executive coaching to employees as a way to help employers empower their workforce.

It is designed to enable employees access to the training, resources, and practice they need to reach their full potential and grow into better leaders at work, at home, and even in the community. The platform connects employees with licensed therapists and career coaches for focused guidance, support, and therapy sessions.

The company helps businesses invest in their employees, boasting a 130 percent increase in job performance when using their platform. In doing this, BetterUp has made a typically exclusive coaching experience available to employees at all levels.

BetterUp makes money by charging a fee to customers who use their coaching services. For a monthly fee, businesses can empower employees, increase productivity and decrease burnout in the workplace by utilizing their platform.

In offering their professional and research-driven coaching services, the company has generated revenue from over 100,000 customers.

Business Model of BetterUp

BetterUp applies six core values to its business model: courage, craftsmanship, empathy, zest, playfulness, and grit.

These values help to remind the company of its purpose, as well as keep them accountable. Aligning themselves with these core values has undoubtedly credited them a great source of success with the platform.

CEO and co-founder Alexi Robichaux recognized that the overall wellbeing of a business’ employees is vital to its success. Individuals around the world spend a huge chunk of their lives in the workplace. Robichaux found that encouraging health and wellness in the workplace not only benefits employees but the employer as well.

Recognizing a host of mental health issues such as anxiety and depression becoming more prominent, BetterUp examined the source. The company conducted a study that takes a closer look at the rise of loneliness in the workplace. What they discovered became the driving force for what the company believes in today.

While employers spend exorbitant amounts of money on tools and resources to increase productivity, employees’ stress and anxiety are also increasing. This discovery points to a significant shift in how we work across the globe today.

The company found that those employees working in lower positions typically found less fulfillment in work than their higher-ups. With their bottom-up approach, BetterUp provides care to employees at all levels, a benefit typically reserved for executives.

Coaching

BetterUp provides professional coaching and valuable tools and resources on its platform to employees at all levels. Their virtual one-on-one coaching is accessible through video or text messaging, making the feature widely available to all.

Users are asked to take a quick questionnaire in which their answers are used to match them with a coach. Using advanced technology, like artificial intelligence and scientific and behavioral research, BetterUp changed the way we approach coaching.

BetterUp challenges employees to ask themselves what their purpose is at work. The company argues that work should be a platform where growth occurs. They believe that the workplace is not meant to simply provide a paycheck, but rather provide personal development as well.

With this in mind, the company formed its mission to help drive growth both personally and professionally. Using AI technology, behavioral science, and human interaction, BetterUp delivers a program, crediting them as the world’s largest coaching network.

Resources

BetterUp provides valuable resources on its platform for customers to access.

They provide information that teaches employers how to enhance their employee’s work experience. With topics covering leadership and management, diversity and inclusion, coaching, culture, and more, BetterUp blogs make management more insightful.

They also offer case studies to highlight the data behind employee engagement, personal development, high-performance cultures, and so on.

Additionally, users have access to a number of other resources such as helpful guides, informative events, and more. Customers who take advantage of these resources in conjunction with their coaching program can expect to better meet their goals.

BetterUp Labs

The company believes in overall wellness, not limited to the workplace, underlining the adage that “innovation starts with empathy”. They launched BetterUp Labs, a comprehensive approach to holistic restoration and maintenance, allocating $20 million in funding towards its behavioral research.

BetterUp Labs conducts behavioral research that will assist in understanding that work and life oftentimes are not actually balanced. It recognizes that work-life balance is more than just finding time to catch up with friends on the weekend. Instead, the Lab uses its findings to impact change in personal development that translates to career development.

In asking themselves how to improve the overall human condition, the company vowed to make coaching better. Instead of simply making it more accessible and affordable, BetterUp strived to make coaching more impactful.

Their business model has found great success as their customer base has grown by 80 percent in just this past year. With prominent companies such as Google, Lyft, Hilton, and more taking advantage of their platform, BetterUp is showing great progress.

They have no plans of slowing, announcing the upcoming launch of BetterUp Care, a wellness program focusing on mental health.

How Does BetterUp Make Money?

Platfrom Subscription Fees

BetterUp makes money from virtual coaching sessions offered to employers and individuals for a monthly fee. They also make money from users utilizing certain tools and resources that they provide on their platform. Using artificial intelligence, BetterUp provides an executive coaching experience to employers at a fraction of the cost.

The coaching industry is quickly growing at a rapid rate of 12 to 15 percent annually, according to a study by The International Coaching Federation. There is plenty of money to be made in this sector that generated a total of $2.9 billion in revenue in the year 2019 alone. And with BetterUp leading the pack as the world’s largest coaching network, they are undoubtedly earning much of that income.

Early this year, the platform announced a monthly fee of $499 for employers. However early buyers could expect to pay a fee of $249 per month. Potential customers can request a demonstration to be connected with a representative who can help them set up their plan.

The company promises employers that by investing in their coaching services, they could quickly see real results. Studies show that high levels of stress quickly lead to burnout, which inevitably leads to a decrease in production.

Employers who invest in BetterUp record a 24 percent decrease in stress, and a 19 percent decrease in burnout among employees.

This is a huge draw for businesses wanting to further drive their bottom line. It is also the reason why BetterUp tripled its revenue growth in 2018 for the second consecutive year. 70 percent of customers describe their coaching experience with BetterUp as “amazing” and “life-changing”.

BetterUp has drawn support from a number of prominent individuals and companies. Early this year, the UK’s Prince Harry joined the team at BetterUp as Chief Impact Officer. He praised the company, calling their platform “invaluable”.

Additionally, their one-on-one coaching services have received praise from many Fortune 1000 companies. To date, the company has made customers out of 28 Fortune 1000 companies such as Instacart and Airbnb.

Equinix, a digital infrastructure company shares its own success story from using the BetterUp platform. The company recorded a 24 percent decrease in employees experiencing stress and a 15 percent decrease in burnout rate. These figures are even higher than the company average.

Their approach to wellness does not stop at reducing the negative, but increasing positive as well. Employers at Equinix reported seeing a 25 percent increase in focus and a 14 percent increase in resilience among workers. The company hires top experts to translate and apply historical data to modern business goals.

BetterUp Funding, Valuation, and Revenue

Since their first funding round in 2016, BetterUp has gradually raised quite a bit of capital. They saw tremendous growth in 2019 with their series C funding round earning $103 million led by Lightspeed Venture Partners. This is nearly four times more capital than what was raised in their previous series B round of $26 million.

In just one year, BetterUp generated more than two times their annual recurring revenue. They also saw a net revenue retention rate of over 140 percent. In addition to this, the company has recorded annual revenue of approximately $229 million, according to GrowJo.com.

In February of this year, BetterUp raised $125 million in funding in their series D round led by ICONIQ Growth. With their newly acquired valuation of $1.73 billion, the company was able to achieve “unicorn status”. This is a coveted title defined as a privately owned start-up earning $1 billion in company valuation.

Thanks to investors, the company has earned a total of approximately $267.8 million in capital since 2016. Using this funding, the company plans to aid in the launch of its newest program, BetterUp Care.

BetterUp Care will provide a more comprehensive wellness program for employees that focuses on true healing from the inside out.

Is BetterUp Profitable?

BetterUp, the leading provider of leadership development and training solutions, has a profitable business model and anticipates continued strong growth in sales and profitability.

By integrating video content in a personalized training experience, BetterUp has developed a profitable business that is poised to displace traditional corporate training companies.

BetterUp has earned a reputation for its commitment to making health and wellness accessible to all employees. Their holistic business model has placed a greater responsibility for employers to invest in the employees who drive their business.

Even as the world’s largest coaching network, the company is expanding, and continues to do so.

Conclusion: How Does BetterUp Make Money?

To sum up, BetterUp is a mobile-based leadership development platform used by hundreds of enterprises to improve the performance of employees in their workplace. It is trusted by many big companies such as ABInBev, Google, Salesforce, and more.

While leadership development may appear to be a luxury for companies with slim profit margins, the truth is that spending time and money on leadership development will yield great results.

Just like other types of investments, leadership development should be measured in terms of ROI (return on investment). BetterUp plans to help businesses achieve their goals by offering them a platform that promotes effective and engaging leadership training.

Thanks for taking the time to read through this article. We hope you enjoyed the content above. If you did, please share it with your friends and colleagues on social media.

If you have any questions, feel free to write us an email. Our team will respond to you as soon as possible.

Have a nice day!

How Does Degreed Make Money? Business Model of Degreed

How Does Guild Education Make Money? (Business Model)