BackJoy raises $8.7 million

BOULDER – BackJoy Orthotics LLC, which makes a variety of products to help people improve their posture, has raised a new $8.7 million round of equity funding according a recent regulatory filing.

In November, Boulder-based BackJoy announced that Sandbridge Capital had acquired a minority stake in the company, though terms of that investment were not announced at the time. But BackJoy CEO and founder Bing Howenstein confirmed that the new funding is from the Sandbridge deal and will help fuel his company’s growth as it ramps up its footwear and apparel product lines.

Founded in 2005, BackJoy has its corporate headquarters in Gunbarrel. The company employs about 110 people worldwide, including about 23 locally.

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BackJoy started with a cushion for chairs to help people improve posture while sitting at their desks, with Howenstein running the business from Los Angeles. But in 2011, BackJoy officials decided to move the company from direct sales through infomercials and the Internet to more of a wholesale and retail model. That’s also when they decided to transition the company to more of a consumer products and lifestyle brand rather than a medical device-type company.

In addition, Howenstein moved the company to Boulder that year, and partnered with a couple of former Crocs employees who have helped build out global distribution and expand the product line to include shoes, pillows, apparel and other gear.

Manufactured primarily in China, the company’s products are sold in 40 countries, including 50 of BackJoy’s own retail stores in China. The products are sold in more than 6,000 retail locations in the United States, including Target, Staples and Bed Bath and Beyond.

Howenstein declined to disclose revenue but said that the company has grown 75 percent per year over the last couple of years.

BackJoy has offices in the Netherlands, Singapore, Korea, China and Chile. Howenstein said he expects to add at least 10 employees globally in the coming year. The company expanded its Gunbarrel office last year with the expectation of growth.