Hinge Health officially went public on May 22, 2025, when it completed its initial public offering on the New York Stock Exchange. The digital physical therapy company closed its first day of trading at $37.56, up about 17% over the $32 IPO price it set the previous day. Even with the pop, Hinge’s public valuation is significantly less than its Prime Unicorn Index valuation of $5.8 billion. The 11-year-old company’s approximate market capitalization is currently about $3 billion.
For the Prime Unicorn Index, Hinge Health was last valued at $5.8B at a per-share price of $77.46, making it the 25th largest component of our 30-company index. The company’s IPO represents a 52% discount to its previous Index valuation. Following our Index methodology, Hinge Health will remain in the Index during the lockup period.
The New Normal: Down-Round IPOs
Hinge Health joins a growing cohort of formerly high-flying private companies accepting public valuations well below their peak private market levels. 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.
The company follows notable examples from recent quarters:
- Reddit (RDDT): Debuted at about $5.4 billion, roughly half its $10 billion valuation from 2021 (currently trading at a market cap of roughly $20.5B)
- ServiceTitan (TTAN): Valued at about $6.3 billion at IPO versus $9.5 billion valuation from 2021, though the company faced additional complexity from preferred stock ratchet provisions (currently trading at a market cap of roughly $10B)
- Hinge Health (HNGE): $3B public debut versus $5.8B Index valuation
Company Fundamentals
Hinge Health’s IPO raised $437 million, with about $237 million in proceeds going directly to the company and the remainder to its existing investors. The company aims to reduce musculoskeletal pain with the help of wearable sensors and computer vision technology remotely monitored by a clinical care team of physical therapists, physicians, and board-certified health coaches.
Key shareholders include:
- Insight Partners: 19% of all stock
- Atomico: 15% of all shares
- Other VCs (~8% each): 11.2 Capital, Coatue, Tiger Global, Bessemer Venture Partners
- Co-founders Daniel Perez and Gabriel Mecklenburg: 18.9% and 8.2% respectively
Prime Unicorn Index Impact
Hinge Health remains in the Prime Unicorn Index following its IPO, consistent with our methodology of holding companies during their lockup period. The company represented approximately 1.8% of the Top 30 Index’s total value at its $5.8B pre-IPO valuation. The significant valuation markdown demonstrates the repricing that has occurred across private markets since the 2021 peak.
Looking Ahead
The IPO market for VC-backed firms in 2025 is set to gain momentum, fueled by a record inventory of over 18,000 late-stage and venture-growth startups. A significant subset of these companies has not raised funding since 2021, indicating readiness to transition to public markets.
The Prime Unicorn Index tracks the share price performance of private, US venture-backed companies worth $1 billion or more. For more information about Index methodology and current components, visit our website or reach out at will@primeunicornindex.com.