Digital health startup Augment Therapy has raised an additional $1.7 million to grow the market for its augmented reality exercise technology.
In May, Augment Therapy announced its first institutional funding — a $1 million investment from CareSource, the Dayton, Ohio-based managed health care organization. Altogether, the company has raised $2.7 million this year in seed-plus funding.
New investors in the latest leg of the fundraising included BlueTree Capital Group, CareSource, VisionTech and angel investors, Augment Therapy said. The Healthcare Collaboration Fund — jointly managed by Cleveland-based venture developer JumpStart Inc. and University Hospital Ventures, the venture arm of University Hospitals in Cleveland — also participated in the funding round.
The Chagrin Falls, Ohio-based company was founded in 2017 by Lindsay Watson, a physical therapist, and Steve Blake, a medical and tech-education software expert.
The founders and their collaborators have developed software and other technologies that make a game out of doing physical therapy for children and adults.
For instance, Augment Therapy has developed a patent-pending technology that uses computer vision rather than wearable technology to offer full-body skeletal tracking during interactive therapy sessions.
The company’s technologies can be used in settings including pediatric children’s hospitals, and adult rehabilitation and skilled nursing facilities.
So far Augment Therapy has raised more than $4 million to develop software that has been tested and refined primarily at Rainbow Babies & Children's, which is part of University Hospitals in Cleveland.
"Augment Therapy’s extended reality platform has redefined the physical therapy experience for many patients" at Rainbow Babies & Children's, said Matthew Zenker, director of deal flow and investments at UH Ventures, in a statement.
In March, Augment Therapy and CareSource began a pilot program in four Ohio locations.
Augment Therapy's immersive technology "can transform the health care industry's approach to physical therapy and significantly improve rehabilitation outcomes for members with disabilities and complex health needs," Josh Boynton, senior vice president for complex health solutions at CareSource, said in a statement.
This year's fundraising is expected to enable to Augment Therapy to expand the pilot into new markets in Ohio, Georgia, Indiana, Arkansas, Texas, Florida, Kansas and Michigan, as well as to help grow the company's product line and market traction.
The company also has developed an application, called ARWell, that people can use in their homes for general wellness exercise and for which no prescription is required.
