Hinge Health Soars on First Day of Trading
Hinge Health, a digital physical therapy company, made a strong debut on the New York Stock Exchange, closing its first day of trading at $37.56, a 17% increase over its $32 IPO price set the day before. While this is a positive start for the company, its public valuation falls short of its last private market valuation. With an approximate market capitalization of $3 billion, excluding employee options, Hinge Health’s value is less than half of the $6.2 billion it reached in its October 2021 Series E funding round led by Tiger Global Management.
In the current landscape, the stigma associated with going public below the last private valuation has diminished, especially if that valuation was set during the high-flying 2020-2021 period. Companies like Reddit and ServiceTitan have also experienced down-round IPOs compared to their previous private valuations.
Hinge Health’s IPO raised $437 million, with a majority of the proceeds going to the company itself and the rest to existing investors. Insight Partners and Atomico are the company’s largest outside shareholders, holding 19% and 15% of all stock, respectively. Co-founders Daniel Perez and Gabriel Mecklenburg own significant stakes in the company as well.
Using wearable sensors and computer vision technology, Hinge Health aims to alleviate musculoskeletal pain through remote monitoring by a clinical care team comprising physical therapists, physicians, and health coaches. The company faces competition from Omada Health, another digital health company that offers virtual care for chronic conditions like diabetes and hypertension.
Sword Health, valued at $3 billion, is Hinge Health’s primary competitor in the musculoskeletal pain reduction space. Sword Health’s CEO, Virgilio Bento, has hinted at a possible IPO in 2025 if the company continues to grow as projected and the economic climate remains favorable.
