MedRhythms Closes $25M Series B Funding Led by Morningside Ventures and Advantage Capital to Advance Digital Therapeutics Platform
July 28th, 2021
PORTLAND, Maine–(BUSINESS WIRE)–MedRhythms, a leader in developing prescription digital therapeutics that use sensors, software, and music to measure and improve walking for patients with a neurologic injury or disease, announced today the closing of a $25 million Series B financing round co-led by Morningside Ventures and Advantage Capital, with participation from existing investor Werth Family Investment Associates. The Company has raised a total of $34 million in gross proceeds from private financings since inception.
The proceeds from the Series B financing will enable MedRhythms to expand its team and key corporate functions as the company commercializes its flagship product for chronic stroke survivors with walking deficits and advances its digital therapeutics pipeline.
MedRhythms’ digital therapeutic platform is designed to digitize an evidence-based intervention known as Rhythmic Auditory Stimulation, which uses music to target neural circuitry that controls movement. This mechanism is known as “entrainment,” a neurologic process in which the auditory and motor systems of the brain are coupled in synchrony with an external rhythmic cue. Entrainment can, over time, both enhance neuroplasticity and lead to improved functional outcomes in walking.
“We are delighted to welcome a top-tier group of leading healthcare investors that will support the company to advance development of our pipeline of prescription digital therapeutics. We have made tremendous progress since founding the Company, and this financing reflects strong support for our platform, people, strategy, and, most importantly, our mission,” said Brian Harris, Co-Founder and Chief Executive Officer, MedRhythms. “This investment positions us to be able to bring our chronic stroke asset to market, advance our pipeline and further realize our vision of making a significant impact in the world.”
“MedRhythms has developed a powerful digital therapeutics platform founded on the premise that targeting electrophysiological networks in the brain can be broadly effective against neurologic disorders,” said Stephen Bruso of Morningside Ventures. “MedRhythms’ innovative approach aligns well with our innovative CNS portfolio, and we are proud to partner with the company’s excellent management team to deliver effective interventions to patients with stroke and beyond.”
“MedRhythms is at the forefront of the next-generation of digital therapeutics and is transforming healthcare which will improve the lives of millions of patients worldwide,” said Chris Harris, Principal at Advantage Capital. “The company’s leadership position and its breakthrough digital therapeutics pipeline makes MedRhythms a pioneer in the industry. The company’s mission and vision for disrupting healthcare and positively impacting patient outcomes aligns with our investment strategy, and we are excited to welcome MedRhythms into our portfolio.”
MedRhythms has received Breakthrough Device designation from the U.S. Food and Drug Administration (FDA) for its patented digital therapeutic to treat chronic stroke walking deficits. This product is the first in the company’s pipeline of digital therapeutics for neurologic disease and injury. The impact of the device on chronic stroke walking impairments are currently being studied in a randomized controlled trial (RCT) at the nation’s top rehabilitation hospitals and research centers. The company also has also expanded its pipeline into neurological conditions such as Parkinson’s, acute stroke and multiple sclerosis, including a neuroimaging study with Massachusetts General Hospital.