Hinge Health Valued at $3 Billion by Tiger Global, Coatue

Hinge Health, which sells virtual physical therapy sessions for customers with back and joint pain, has raised a financing round led jointly by Coatue Management and Tiger Global Management at a valuation of $3 billion, or seven times its last financing in April, according to two people familiar with the matter.

The San Francisco–based company has seen an influx of new customers during the pandemic as Americans develop musculoskeletal problems while working in makeshift home offices or seek to treat chronic conditions without in-person visits. The financing round illustrates how startups benefiting from the pandemic have been able to secure funding at steep valuations, in part due to record levels of dry powder at investment firms. The Series D round also reflects deepening interest in health-tech startups by hedge funds and growth equity funds, which typically invest in public or older private companies.