Hinge Health IPO Sees 17% Pop, But Valuation Drops
Digital physical therapy company Hinge Health debuted on the New York Stock Exchange Thursday, closing at $37.56 per share. This represents a 17% increase over its $32 IPO price. Despite this positive initial performance, Hinge Health's public valuation sits at approximately $3 billion, less than half of its $6.2 billion valuation during its October 2021 Series E funding round.
Down Round IPO Trend Continues
Hinge Health joins a growing number of companies experiencing down round IPOs. While once heavily avoided, down rounds have become more common, particularly for companies with high valuations during the 2020-2021 period. Other examples include Reddit and ServiceTitan, both of which went public at valuations significantly lower than their previous private funding rounds.
Hinge Health IPO Details and Investors
The Hinge Health IPO raised $437 million, with approximately $237 million going directly to the company. Major investors include Insight Partners (19% stake) and Atomico (15% stake). Other notable venture capital firms holding approximately 8% stake each include 11.2 Capital, Coatue, Tiger Global, and Bessemer Venture Partners. Co-founders Daniel Perez and Gabriel Mecklenburg retain 18.9% and 8.2% ownership, respectively. More details can be found in the company's latest S-1 filing.
Hinge Health's Technology and Competition
Hinge Health utilizes wearable sensors and computer vision technology to address musculoskeletal pain. A clinical care team of physical therapists, physicians, and health coaches remotely monitor patients. The company faces competition from other digital health companies like Omada Health and Sword Health. Omada Health recently filed to go public and offers virtual care for chronic conditions. Sword Health, valued at $3 billion in 2024, may also pursue an IPO in the future, according to its CEO.
