Listen Here

| |

Conversation
Highlights

 

Welcome to another episode of Category Visionaries — the show that explores GTM stories from tech’s most innovative B2B founders. In today’s episode, we’re speaking with Matthew Stoudt, CEO and c0-founder of AppliedVR, a virtual reality therapeutics platform that has raised over $70 million in funding.

  • Matthew’s entrepreneurial journey spanning ventures in virtual hard drives, in-store gas station advertising, and his philosophy of being a “collector of experiences” inspired by Zappos’ Tony Hsieh.
  • The massive global chronic pain epidemic, affecting over 100 million Americans and costing $650 billion annually, yet remaining largely unaddressed by traditional treatments focused solely on physiology.
  • The potential of VR as a new category of medicine, leveraging three decades of research on acute pain distraction and more recent insights into chronic pain management through CBT and other behavioral therapies.
  • AppliedVR’s 8-week VR program developed in partnership with leading pain psychologist Dr. Beth Darnall, teaching patients self-regulation skills through interactive experiences like controlled breathing visualizations.
  • The company’s evolution from initial pilots in top hospitals to an FDA-approved at-home treatment for chronic low back pain, with the ultimate vision of a “VR headset in every home” as a healthcare hub.
  • Matthew’s perspective on overcoming skepticism through an unparalleled body of clinical evidence, empowering patients with non-invasive options, and transforming the healthcare paradigm from “finding care” to “delivering care.”

Actionable
Takeaways

Seek Problems Hidden in Plain Sight:

Matthew frames chronic pain as a massive yet largely invisible epidemic, overshadowed by the more visible opioid crisis. He highlights how conventional treatments have failed to address the biopsychosocial complexity of chronic pain, creating an opportunity for a fundamentally new approach. Founders should look for these "elephants in the room" - problems so immense and entrenched, they often escape notice and creative problem-solving.

Apply Cutting-Edge Tech to Overlooked Domains:

AppliedVR demonstrates the power of bringing an emerging technology like VR to bear on a long-standing challenge like chronic pain management. By marrying decades of academic research with the latest advances in VR hardware and software, the company is unlocking novel solutions that were previously impractical or impossible. Founders should explore how cutting-edge tools might enable transformative breakthroughs in traditional industries.

Prioritize Ease of Use in Novel Product Design:

Having observed the real-world friction of early VR pain management devices, Matthew and his team have relentlessly focused on simplifying the patient experience, even if it means sacrificing more sophisticated features. Their mantra of "easy to use, engaging, efficacious - in that order" recognizes that adoption depends on eliminating barriers to entry. Founders pioneering new product categories must ruthlessly streamline UX to drive adherence.

Build Credibility Through an Unassailable Body of Evidence:

Anticipating skepticism of VR in medical use cases, AppliedVR has invested heavily in building clinical evidence through partnerships with leading researchers and health systems. By prioritizing scientific validation from the start, the company has accelerated acceptance among patients, providers, and payers. Founders introducing unconventional solutions in regulated spaces should anchor their approach in rigorous, objective proof.

Target Beachhead Markets to Establish a Foothold:

AppliedVR has strategically chosen the Veterans Health Administration as its initial go-to-market focus, capitalizing on the system's early adoption of VR and its prioritization of pain and mental health. By concentrating resources on a receptive and influential customer, the company can efficiently build momentum for broader market penetration. Founders should identify and dominate beachhead segments as a springboard for category leadership.

Recommended Founder
Interviews

Austin McChord

CEO of Casana

Austin McChord, CEO of Casana: Over $46 Million Raised to Create the Future of In-Home Health Monitoring

Ty Allen

CEO of SocialClimb

Ty Allen, CEO of SocialClimb: $12 Million Raised to Power the Future of Healthcare Marketing

Joe Gagnon

CEO of 1upHealth

Joe Gagnon, CEO at 1upHealth: Over $75 Million Raised to Build the Future of Healthcare Data

Itzik Cohen

Co-Founder and CEO of PayZen

Itzik Cohen, Co-Founder and CEO of PayZen: $240 Million Raised to Build the Future of Affordable Health Care

Rishi Nayyar

CEO and Co-Founder of PocketHealth

Rishi Nayyar, CEO and Co-Founder of PocketHealth: $22.5 Million Raised to Power the Future of Medical Image Sharing

Dr. Nan-Wei Gong

CEO and Founder of FIGUR8

Dr. Nan-Wei Gong, CEO & Founder of FIGUR8: $40 Million Raised to Build the Future of Musculoskeletal Health and Injury Data Solutions

Steven Greene

CEO of Nibble Health

Steven Greene, CEO of Nibble Health: $8 Million Raised to Bring the Fintech Revolution to the World Healthcare Payments

Alex Zekoff

CEO and Co-Founder of Thoughtful AI

Alex Zekoff, CEO and Co-Founder of Thoughtful AI: $21 Million Raised to Power the Future of Healthcare Automation

Kevin Flyangolts

CEO and Founder of Aclid

Kevin Flyangolts, CEO & Founder of Aclid: $4 Million Raised to Build the Future of Biosecurity

Stacy Edgar

CEO and Co-Founder of Venteur

Stacy Edgar, CEO & Co-Founder of Venteur: $7.6 Million Raised to Build the Future of Health Insurance

Samson Magid

Co-Founder and CEO of HealthSnap

Samson Magid, Co-Founder and CEO of HealthSnap: Over $12 Million Raised to Build the Future of Remote Patient Monitoring

Trenor Williams

CEO and Co-Founder of Socially Determined

Trenor Williams, CEO and Co-Founder of Socially Determined: $34 Million Raised to Build the Social Risk Intelligence Category

Derek Streat

Co-Founder & Chief Executive Officer of Dexcare

Derek Streat, CEO of Dexcare: $110 Million Raised to Help Health Systems to Find Time for the Best Care

Viral Patel

Founder and CEO of Radish Health

Viral Patel, CEO of Radish Health: $5 Million Raised to Connect Employees with a Better Healthcare Experience

Alfred Griffin

CEO and Co-Founder of CEO and Co-Founder

Alfred Griffin, CEO and Co-Founder of LightForce: $150 Million Raised to Power the Future of Orthodontics

Hala Borno

Founder and CEO of Trial Library

Hala Borno, Founder and CEO of Trial Library: $5M Raised to Improve Patient Recruitment and Diversity in Oncology Clinical Trials

Matt Renfro

Co-Founder & CEO of Lynx

Matt Renfro, CEO of Lynx: $17.5 Million raised to Bring Modern Fintech to Healthcare

Dr Thomas Oakley

CEO of Feedback PLC

Dr Thomas Oakley, CEO of Feedback PLC: £20 Million Raised to Build the Future of Patient Data Sharing

James Bates

CEO and Founder of AdviNOW Medical

James Bates, CEO and Founder of AdviNOW Medical: $24 Million Raised to Build the Future of AI-Powered Healthcare

Kyle Kiser

CEO of Arrive Health

Kyle Kiser, CEO of Arrive Health: Over $40 Million Raised to Improve the Value of Healthcare Through Informed Decision-Making

David King Lassman

Founder of GigXR

David King Lassman, Founder of GigXR: $7 Million Raised to Bring Immersive Learning to Healthcare

David Berry

CEO and Founder of Valo

David Berry, CEO and Founder of Valo: Over $500 Million Raised to Build the Future of Drug Discovery

Richard Queen

CEO and Co-Founder of DignifiHealth

Richard Queen, CEO and Co-Founder of DignifiHealth: $7 Million Raised to Drive Better Patient Outcomes in Rural Healthcare and Beyond

Kourosh Davarpanah

Co-Founder and CEO of Inato

Kourosh Davarpanah, Co-Founder and CEO of Inato: Over $35 Million Raised to Build the Future of Clinical Trials

Joshua Miller

CEO and Co-Founder of Gradient Health

Joshua Miller, CEO & Co-Founder of Gradient Health: $5.7 Million Raised to Build the Future of Medical Imaging

Aasim Saeed

CEO and Founder of Amenities Health

Aasim Saeed, CEO and Founder of Amenities Health: $10 Million Raised to Build the Future of Patient Engagement

Dipanwita Das

CEO and Co-Founder of Sorcero

Dipanwita Das, CEO and Co-Founder of Sorcero: Over $20 Million Raised to Power Medical Affairs Teams of the Future

Michael Gorton

Founder of Teladoc

Teladoc Founder Michael Gorton on the Early Days of Pioneering the Telemedicine Category (And What’s He’s Up to Next)

Daniel Lambert

CEO of PathologyWatch

Daniel Lambert, CEO of PathologyWatch: Over $50 Million Raised to Build the Future of Digital Pathology

Joseph Schneier

CEO of Trusty Care

Joseph Schneier, CEO of Trusty Care: $13+ Million Raised to Shape the Future of Medicare

Cesar Herrera

CEO and Co-Founder of Yuvo Health

Cesar Herrera, CEO and Co-Founder of Yuvo Health: $28 Million Raised to Revolutionize Healthcare Access

Brett Kleger

CEO of Datacubed Health

Brett Kleger, CEO of Datacubed Health: $43 Million Raised to Revolutionize Clinical Trial Data Collection

Andreas Cleve

CEO and Co-Founder of Corti

Andreas Cleve, CEO and Co-Founder of Corti: $32 Million Raised to Power the Future of Patient Consultations