Hinge Health, a digital therapeutic company focusing on physical therapy, ended its first trading day on the New York Stock Exchange at $37.56 per share, marking a nearly 17% increase from its IPO price of $32. Despite this strong initial showing, the company’s public valuation has substantially dipped compared to its most recent private valuation.
At market close, Hinge Health was valued at about $3 billion, excluding employee stock options, representing less than half of the $6.2 billion valuation it secured in its Series E funding round in October 2021, led primarily by Tiger Global Management.
Down-round IPOs such as this have traditionally been viewed unfavorably by startups, but the stigma around going public below recent private valuations is gradually fading, partly due to inflated valuations during the 2020-2021 investment surge. Prominent companies have recently experienced similar circumstances, including Reddit, which publicly debuted last year at a $5.4 billion valuation, nearly half its peak private-market value of $10 billion, and ServiceTitan, which also saw its IPO valuation slip to roughly $6.3 billion from a previous private valuation of $7.6 billion.
From the IPO proceeds totaling $437 million, approximately $237 million will directly benefit Hinge Health, with the remainder allocated to existing investors. The company’s primary external stakeholders include Insight Partners, holding approximately 19% of the shares, Atomico controlling 15%, and other venture capital firms such as 11.2 Capital, Coatue, Tiger Global, and Bessemer Venture Partners, collectively owning about 8%. Co-founders Daniel Perez and Gabriel Mecklenburg own 18.9% and 8.2% of the shares, respectively.
Founded 11 years ago, Hinge Health specializes in reducing musculoskeletal pain through technology-based interventions, combining wearable sensors, computer vision, and remote monitoring by clinicians, including physical therapists, physicians, and board-certified health coaches.
Meanwhile, another digital healthcare company, Omada Health, recently filed for its own IPO. Omada provides virtual care for chronic conditions like diabetes and hypertension, positioning it directly as a competitor to Hinge Health in the musculoskeletal therapy segment. Omada was last valued around $1 billion in 2022.
Hinge Health also competes closely with Sword Health, which achieved a valuation of $3 billion approximately one year ago. At that time, Sword indicated plans to consider going public in 2025, contingent on continued growth and favorable market conditions.
