Back pain is the number one health problem in Germany. There are various approaches to addressing this problem. However, the most effective way to deal with back pain is to maintain an active lifestyle that is pain-adapted. The Munich-based startup Kaia Health has developed a digital therapy for back pain. For the first time, this so-called multimodal therapy is available in app form.
Kaia's target audience isn't just the 80% of the population who suffer from back pain at least once in their lives. Nor are they just the 5-10% of them who suffer from chronic pain. The Munich startup also focuses on companies that want to combat the problem of back pain.
The founders of Kaia, Konstantin Mehl and Manuel Thurner are not entirely unknown in the Munich startup sceneTogether, they already built Foodora. After leaving Foodora completely at the beginning of June 2017, they can now devote themselves to their startup Kaia Health, which they founded in 2016.
Interaction with insurance companies and medical practitioners
The two founders already had good experience with sales at Foodora, both B2B and B2C. Constantine explains:
"Large companies and insurance companies are approaching us because back pain is the number one reason for incapacity to work in all industrialized nations. That's unbelievable! We live in a highly industrialized country like Germany, and when it comes to back pain, I'd give the medical care system a favorable 3- on the school grading system."
The serial entrepreneur sees advantages in the fact that a startup can be a more flexible pioneer while simultaneously seeking cooperation with mainstream healthcare providers. Kaia Health is part of a large research project funded with €5.2 million, jointly with AOK Bayern and the Technical University of Munich.
Gold standard — no waiting times & no cost avalanche
Together with the Pain Center at the Technical University of Munich, the founders have digitized the "gold standard in back pain therapy," multimodal pain therapy. This type of therapy is an alternative to surgery. However, it is rarely covered by health insurance companies and, at up to €15,000, is quite expensive. Waiting times of up to two years for a therapy slot make the Kaia app, which allows you to start training immediately, all the more attractive. In the future, Kaia will also be covered by health insurance companies.
Artificial Intelligence as the main focus of the founders
There are plenty of fitness apps, including ones for back pain. And at first glance, Kaia doesn't sound so different: It offers a holistic training program for every day, consisting of knowledge, mindfulness, and physical exercises.
We asked founder Konstantin how his startup stands out from the competition:
"We are the world's only provider with a medical USP, the gold standard in back therapy. And we have a technical USP through the integration of artificial intelligence. We founders are almost exclusively occupied with our 'AI lab.'"
Artificial intelligence for the eyes and brain of the digital therapist
This technical innovation opens up new possibilities for users of fitness apps: Using movement tracking, the so-called 'therapist's eye', it will be possible to improve body exercises in real time via the smartphone.
Thanks to artificial intelligence (AI), the 'therapist brain' knows how to best structure the exercises based on the patient's medical history and exercise performance. Customers such as large insurance companies also benefit from Kaia's 'AI lab'.
Another advantage in product development is that Konstantin knows exactly what he is talking about: His “weak point” is his back, he says, and says:
"Ultimately, we're building the app for me, so I don't have to run to the doctor anymore. I'm sticking with Kaia because I notice that it helps me, and the training keeps my back pain under control with relatively little time investment."
A few years ago, he narrowly avoided spinal surgery thanks to multimodal therapy. Today, the young entrepreneur actively uses Kaia 3-4 times a week, for example, after a long car ride.
Is the German market ready for digital pharmaceutical startups?
Kaia Health wants to launch much more than just a fitness app. The founders see themselves more as a digital pharmaceutical company—something that hasn't yet arrived on the German healthcare market. Konstantin describes it this way:
"In Germany, there are very good doctors who are trying to bring medically accurate products to market. Then there's the second group, the internet entrepreneurs who are building a fitness app. The combination of both approaches is missing."
Investors often confuse Kaia with a fitness app, simplifying the company to 'So you're a Freeletics for back pain.' The situation is different in America, Asia, and elsewhere in Europe. The founder adds:
"There are digital health investors there who understand the sector very well. They see us more like a pharmaceutical company that develops apps, not pills. These investors also understand that we conduct clinical trials and that data protection is a major issue. Of course, these investors also understand that we need much more money and time to build a digital therapy company than for a fitness or wellness company."
Nevertheless, the Munich-based startup already completed its first seed round of €720,000 last year. Not to mention the €5.2 million funding project from the Federal Committee together with other consortium partners.
As a pure wellness app you won’t get far
The founders also mastered the difficult process of obtaining medical device certification for so many med-tech startups with the help of external consultants and thanks to the team's doctor, Dr. Stephan Huber, as Chief Medical Officer. Nevertheless, it's a complex process.
Konstantin explains what is hindering certification and why it is still worthwhile:
"Of course, this has a significant impact on our product development process, making it slower and more documentation-intensive. But our mission is to develop digital therapies, and a pure wellness app won't get you very far in that area. We also have clinical trials underway and work with insurance companies. None of this would be possible without the necessary CE certifications."
Big leaps? Are eHealth more likely to be made abroad?
When asked about the biggest challenge currently facing Kaia Health, the experienced founder replies that it's currently a difficult question whether and for how long it should remain in Germany. Asia and the US are much more mature markets when it comes to digital therapies. An office is already open in Boston, the US medical hotspot, and it receives many inquiries from major companies. An Asian investor is also on board, and several pilot projects are lined up there.
If you want to scale quickly, you need happy users!
At Foodora, Manuel and Konstantin had shown how a startup can gain momentum. So we wanted to know if they were also focusing on rapid expansion with Kaia. Konstantin explains:
"If we want to scale quickly with Kaia, we need to continually improve the product. On average, everyone knows about five people who also have back pain. This means: If we make our existing users super happy, our growth will be enormous."
Team as a success factor
That's why the founders are currently focusing on this in particular. And, of course, on the perennial issue for Munich startups: finding good staff. After all, a successful company needs a good team in addition to a good product. Konstantin puts it this way:
"A world-class team without compromise. That means no team members who only half care about the mission. Every Kaian must be 100% convinced of our mission."
It remains to be hoped that Kaia's current 18 employees will continue to successfully pursue their mission to combat back pain. And that the German market will continue to open up to eHealth innovations, regardless of whether this is in terms of legislation or investor openness.
