Flagler Health Raises $50M Series B to Build the AI Operating System for Musculoskeletal Care

Flagler Health, a New York startup building an AI-powered platform for musculoskeletal (MSK) care, has raised $50 million in Series B funding, bringing its total raised to $63 million, the company said Tuesday. The round was led by Bessemer Venture Partners with participation from SignalFire, Alumni Ventures and other investors.

Software Layer for a $400B Market

Flagler's platform aggregates patient data, clinical AI models and care protocols to triage, route and manage MSK patients — the most common driver of healthcare spending in the US, a market the company pegs at roughly $400 billion annually. The funding comes as employers and insurers push for AI-first navigation tools to steer patients away from unnecessary imaging and surgery toward lower-cost physical therapy and conservative care pathways.

The raise is one of the larger digital-health rounds of the week in a venture market dominated by AI: analytics firm Infor Capital estimated that artificial intelligence captured 83 percent of roughly $1.17 trillion in venture capital deployed across 1,453 confirmed rounds in the 31 days between July 11 and August 10, though health-specific deals like Flagler's remain a steady counter-current.

TechStartups reported Flagler will use the proceeds to expand its clinical care team and grow partnerships with health systems and self-insured employers, as musculoskeletal conditions remain among the highest-cost, highest-volume categories in American medicine.