The investment will accelerate NightWare’s VA pilots and commercialize its FDA-cleared wearable therapeutic for PTSD-related nightmare disorder.
Key takeaways:
- NightWare and Exit 156 Capital announced a strategic partnership as part of NightWare’s ongoing Series C financing, raised at a $10 million pre-money valuation.
- The FDA-cleared prescription digital therapeutic uses an Apple Watch and AI to interrupt PTSD-related nightmares via personalized vibrotactile stimulation without waking the patient.
- Proceeds will accelerate the national VA Pathfinder Innovation Pilot, expand first responder commercial insurance pilots, and support international regulatory submission.
NightWare Inc and Exit 156 Capital have announced a strategic investment by Exit 156 in NightWare’s ongoing Series C financing. NightWare is the maker of an FDA-cleared prescription digital therapeutic indicated for nightmare disorder in adults with post-traumatic stress disorder (PTSD).
The partnership unites the growth-stage digital health company with Exit 156, an investment firm whose expertise spans healthcare services, devices, and technology. NightWare’s Series C is being raised at a $10 million pre-money valuation, with $1.4 million already secured and $2.0 million of equity remaining available to qualified investors.
Nightmare disorder affects an estimated 71% to 96% of individuals with PTSD and is independently associated with suicidality. NightWare addresses this with an FDA-cleared, artificial intelligence (AI)-guided wearable system that intervenes during the nightmare cycle without waking the patient.
The system pairs an Apple Watch with a proprietary AI application that continuously monitors heart rate and movement during sleep, calculates a real-time stress index, and delivers personalized vibrotactile stimulation to interrupt the physiological escalation associated with nightmares. The device is updated and personalized nightly based on prior session data.
“Exit 156 doesn’t invest in categories—they invest in people and proof. We have both. This partnership accelerates our path to standard reimbursement coverage in the VA, deeper penetration in first responder markets, and the commercial infrastructure needed to make NightWare the standard of care for nightmare disorder nationwide,” says Matt Tucker, CEO of NightWare, in a release.
NightWare has generated more than $7.5 million in cumulative revenue with an average selling price of approximately $5,000 per device and a gross margin exceeding 75%. The company has served more than 2,000 patients and is establishing reimbursement across the VA health system, commercial insurance, and direct-pay channels. Its national VA Pathfinder Innovation Pilot is currently active at the Pittsburgh VA medical center, with additional sites onboarding in the next three months.
The investment proceeds will be used to:
- Accelerate and expand the national VA Pathfinder Innovation Pilot across multiple VA medical center sites
- Scale employer-group commercial insurance pilots with fire and police departments to achieve covered-benefit status
- Commercialize the patient management program as a per-patient, per-month recurring revenue service
- Support regulatory submission to the Israel Ministry of Health for international market entry
- File provisional patent application for new intervention pattern increasing accuracy and specificity
“Mike Nathan’s early belief in NightWare helped set the stage for this partnership. When we looked at the full picture, the clinical evidence, the reimbursement in place, the VA pilot, and a team that knows how to execute, the decision to invest at the Series C level was clear,” says Josh Robinson, managing partner at Exit 156 Capital, in a release.
