Hinge Health pops 17%, but joins growing ranks of down round IPOs

Hinge Health, a digital physical therapist company, closed its first day of trading on the New York Stock Exchange on Thursday at $37.56, up about 17% over the $32 IPO price it set the previous day. That’s a good first-day result. But even with the pop, Hinge’s public valuation is significantly less than its last private market one. The 11-year-old company’s approximate market capitalization, excluding employee options, was about $3 billion, which is less than half of the $6.2 billion Hinge attained in its October 2021 Series E funding round, which was led by Tiger Global Management. Until recently, companies went to great lengths to avoid down-round IPOs. However, the stigma associated with going public below the last private valuation has lessened significantly if that valuation was during the heady 2020-2021 era. Companies whose IPOs are priced lower than their last private valuation by VCs include Reddit, which debuted last year at about $5.4 billion, roughly half its $10 billio ... Read full article.