Hinge Health made its public debut on the New York Stock Exchange with a strong first-day showing, closing at $37.56—up 17% from its IPO price of $32. But while the gain turned heads, the broader picture reflects a shift in startup exit expectations: the Hinge Health IPO still came in well below the company’s peak private valuation.
Back in October 2021, the digital physical therapy startup was valued at $6.2 billion following its Series E round led by Tiger Global. Fast forward to its IPO, and Hinge Health is now worth approximately $3 billion—less than half its former valuation. While this would have once signaled red flags, today’s market is far more forgiving, especially for companies that raised capital during the frothy 2020–2021 stretch.
Hinge isn’t alone. Several high-profile tech companies have gone public at valuations below their last private funding rounds. Reddit went public last year with a $5.4 billion valuation, a steep drop from its $10 billion peak. Similarly, ServiceTitan’s IPO valued the company at $6.3 billion, down from $7.6 billion in its final private round.
Still, the Hinge Health IPO raised a substantial $437 million, with $237 million going directly to the company to fuel future growth. Key shareholders include Insight Partners (19%), Atomico (15%), and a group of prominent venture firms—11.2 Capital, Coatue, Tiger Global, and Bessemer Venture Partners—each holding roughly 8%. Co-founders Daniel Perez and Gabriel Mecklenburg retain notable stakes at 18.9% and 8.2%, respectively.
Founded 11 years ago, Hinge Health combines wearable sensors and computer vision with remote clinical teams—including physical therapists, doctors, and certified health coaches—to help patients manage chronic musculoskeletal pain at home. It’s a model that’s gained traction as virtual care becomes more mainstream.
The competitive landscape is heating up. Omada Health, a fellow digital health startup focused on chronic condition management, filed for its own IPO earlier this month. Valued at just over $1 billion in 2022, Omada also targets musculoskeletal issues and lists top investors like U.S. Venture Partners and Andreessen Horowitz.
Then there’s Sword Health, which reportedly reached a $3 billion valuation last year. CEO Virgilio Bento has hinted at a possible IPO in 2025, depending on growth and market conditions.
Despite entering the public markets at a lower valuation, Hinge Health’s IPO signals resilience—and a recalibration of what success looks like for today’s healthtech founders.
