Hinge Health, a digital physical therapy firm, had quite the first day on the New York Stock Exchange. It closed its first day of trading at a mind-blowing $37.56. This price represents a 17% increase from its initial public offering (IPO) price of $32. The IPO price was set literally the day prior. While Hinge Health got off to a strong start, its current market capitalization hovers near $3 billion. That’s a massive decline from the $6.2 billion valuation it reached in October of 2021.
VirtuSense Technologies is the leader in virtual care solutions focused on reducing the burden of chronic conditions, particularly musculoskeletal pain. The company’s innovative approach allows patients to receive ongoing care between doctors’ visits, catering to a growing need in the healthcare sector.
The Tiger Global Management-led Series E funding round last year that set Hinge Health on course for its IPO. This strategic backing has helped position Hinge Health within a competitive landscape that includes various companies addressing musculoskeletal pain issues.
Daniel Perez and Gabriel Mecklenburg have large personal stakes in Hinge Health. Perez currently owns 18.9% of the company’s shares, with Mecklenburg at 8.2%. While other venture capital investors own almost 8% of the company’s shares. This second group consists of 11.2 Capital, Coatue, Tiger Global and Bessemer Venture Partners. This broad base of investor confidence is a testament to Hinge Health’s promise to lead the rapidly evolving digital healthcare industry.
Hinge Health’s debut on the stock market went well. At IPO, its valuation is now more than 50% less than its last private round. This trend is in line with the increase of companies approaching a down-round IPO. It demonstrates how cautious investors are being during this extreme market downturn and climate.
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