AppliedVR Garners $29 Million From Investors for Digital Health Solutions

By James White Tuesday, March 30, 2021

VR technology continues to find new purposes as startup companies and businesses explore the numerous applications of the industry. VR gaming and training is just the tip of the iceberg. Startup company AppliedVR gears its business toward digital healthcare solutions, further pushing the boundaries of VR technology. The healthcare startup business raked in $29 million from investors during the latest fundraising round for the company.

“While our mission has always been to demonstrate that VR can be a powerful analgesic in any setting, the COVID-19 pandemic has created a surge in demand for digital medicines like VR that can be delivered safely to patients in their own homes,” said Matthew Stoudt, co-founder and CEO of AppliedVR. “As a leading evidence-backed VR therapeutics provider in healthcare, we’re committed to meaningfully improving the lives of people suffering from chronic pain by making VR the standard of care for treating chronic pain in a provider-prescribed, payer-reimbursed model.”

Investors who supported the startup business in the newest fundraising included F-Prime Capital, JAZZ Venture Partners, Sway Ventures, GSR Ventures, Magnetic Ventures, and Cedars-Sinai. In 2016, AppliedVR brought in $6 million from a seed round powered by Techstars, Sway Ventures, Presence Capital, and Cedars-Sinai. To date, the healthcare startup company has raised $35 million for its digital medicine business.

A scientist using a VR headset.

VR Therapy for Chronic Pain

Founded in 2015 by Stoudt and entrepreneurs David Sackman and Josh Sackman, AppliedVR sets aspires to treat patients with chronic pain using a safe, effective, and cost-effective method. Given that research studies have found that chronic pain treatment can cost nearly $635 billion each year in the US, the need for a more affordable solution is certainly warranted.

The startup company provides its own VR hardware and software. The AppliedVR headset sports a high-resolution 4K display with gaze-based control, allowing users with a limited range of motion to enjoy the benefits of the soothing software. Software developed by the healthcare startup business includes tools such as a breath visualizer, as well as several engaging and relaxing scenarios designed by medical experts. Currently, AppliedVR offers over 40 modules for patients to explore, whether it’s relaxing under the sea with dolphins or watching the sunset over the horizon on a sandy beach.

Last year, the startup company announced that its EaseVRx, which is still currently in development, received the Breakthrough Device designation from the US Food and Drug Administration (FDA) for fibromyalgia and chronic intractable lower back pain treatment. RelieVRx and AnxietyVRx programs are also currently in development at the healthcare startup business, with the intent to treat acute postoperative pain and generalized anxiety, respectively.

Revolutionizing the Healthcare Industry

Market research projects the global digital health market to reach $385.8 billion by 2025 while growing at a CAGR of 24.6%. AppliedVR is changing the way healthcare companies look to treat chronic pain by utilizing advancements in VR technology as others have done in different industries. VR continues to open doors for new startups in many markets.

About the Author

Headshot of James White

James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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