AppliedVR, developer of virtual reality therapeutics, has scooped up $36 million in Series B funding months after it closed a Series A round.

The Series B, which included investments from F-Prime Capital, JAZZ Venture Partners, Sway Ventures and SVB Ventures, brought the company’s total raise to $71 million. 

WHAT IT DOES

AppliedVR creates virtual reality technology for healthcare applications, with platforms in its pipeline for chronic pain management, acute postoperative pain and anxiety.  

Its EaseVRx tool, which received Breakthrough Device designation from the Food and Drug Administration in October 2020, combines a VR headset with visual and audio programs that deliver cognitive behavioral therapy to treat fibromyalgia and chronic lower back pain.

WHAT IT’S FOR

The company plans to use the investment to prepare for EaseVRx’s market launch pending FDA De Novo approval, wrap up pilots with payers, build out its products in the pipeline, conduct clinical studies and continue working on its VR pharmacy platform. 

“For too long, we’ve relied on the notion that people need to take pills or rely on surgery to feel better and lead a better quality of life. At AppliedVR, we’re building an unparalleled body of evidence for providers and payers to demonstrate that immersive therapeutics can fill the massive unmet need for patients who are frustrated by current treatment paradigms. And we are starting with chronic pain, one of the most complex, costly conditions,” cofounder and CEO Matthew Stoudt said in a statement.

“Our goal is to make immersive therapeutics accessible to everyone, and this funding will help further expand our body of evidence, infrastructure and distribution platform, enabling patients and providers to take advantage of this next-generation therapeutic – while also bringing down costs for payers.”

MARKET SNAPSHOT

In August, AppliedVR partnered with decentralized clinical trial company Curebase to run five trials to test the effectiveness of virtual reality for treating chronic pain. It has conducted other studies on its tools, including one published in JMIR in February.  

Its Series A funding round announced in March brought in $29 million.

Other companies in the therapeutic virtual reality space include XRHealth, which launched a new pain management program and raised $9 million earlier this year, and Karuna Labs, which raised $3 million in seed funding in 2019. 

Another company that uses virtual reality to ease pain and anxiety during minor medical procedures, Belgium-based Oncomfort, raised €10 million ($11.8 million) in September 2020.