Hinge Health pops 17% but joins the down rank of the IPO round
Digital physiotherapist company Hinge Health closed its first day of trading on the New York Stock Exchange at $37.56 on Thursday, about 17% higher than the $32 IPO price it set the day before.
That’s a good first day result. But even with pop, the public ratings for hinges are significantly lower than their last private market. The 11-year-old company, excluding employee options, had an approximate market capitalization of about $3 billion. $6.2 billion hinges It was achieved in the Series E funding round in October 2021, led by Tiger Global Management.
Until recently, businesses have spent a very long time avoiding downround IPOs. However, if the rating was 2020-2021, the stigma associated with being published under the last private assessment has been significantly reduced.
Companies with IPOs that are lower than their previous private ratings by VCS include Reddit, which debuted around last year. Approximately $5.4 billion, about half valuation of $10 billion from 2021.
Another example is ServiceTitan where the IPO evaluated it Approximately $6.3 billionless than $7.6 billion rating It was secured in the Series H round two years ago.
Hinge Health’s IPO raised $437 million, with approximately $237 million in revenue going directly to the company and the rest to existing investors. The company’s largest external shareholders are Insight Partners, which holds 19% of its shares, and Atomico, which holds 15% of all its shares. Other venture capital companies that own approximately 8% of Hinge’s stake include 11.2 Capital, Court, Tiger Global and Bessemer Venture Partners. The company’s latest S1 filing. Co-founders Daniel Perez and Gabriel Mecklenburg own 18.9% and 8.2%, respectively.
The company aims to reduce musculoskeletal pain with the help of wearable sensors and computer vision technology that are monitored remotely by a clinical care team of physical therapists, physicians and board-certified medical coaches.
Omada Health, another digital health company, Submitted for publicity Early this month. The 13-year-old startup offers virtual care during doctor visits for chronic diseases such as diabetes and hypertension, competing with hinge health in the musculoskeletal pain reduction space. Omada’s biggest shareholders include US venture partners and Andreesen Horowitz. 1 billion dollars.
Hinge Health’s main competitor is Sword Health, which was valued at $3 billion about a year ago. At the time, Virgilio Bento, CEO of Sword Health, told TechCrunch that the company might also pursue an IPO. If 2025 grows as expected And the macroeconomic environment is desirable.