Digital health company Hinge Health made its public market debut on Thursday, marking a significant moment for the digital health sector. The company's stock price surged to $39.25 per share on its first day of trading, 23% above its initial public offering (IPO) price of $32.

The IPO valued Hinge Health at approximately $2.6 billion based on shares outstanding after the offering. By market close, the company's value had increased to about $3 billion. This strong start represents the first major success for the digital health IPO market in recent years.

Hinge Health, founded in 2014 to provide virtual care for musculoskeletal conditions, raised $437 million through its IPO. This included $273 million in proceeds for the company and $164 million for selling shareholders. The IPO valuation of $2.6 billion represents a 52% markdown from its last private valuation of $6.2 billion in 2021.

The company's successful public debut is seen as a positive sign for the digital health sector, which has faced challenges in recent years. Between 2021 and 2024, only four healthcare companies went public, with just two still trading on the stock market.

Hinge Health's IPO has created significant value for its investors and executives. Major stakeholders include:

- Insight Partners: Owns 13.7% of the company, worth about $433 million at the market debut price.
- Daniel Perez (Co-founder and CEO): Owns 13.1% of the company, worth about $414 million.
- Atomico: Owns 9.8% of the company, worth about $309 million.
- Tiger Global: Owns 6.5% of the company, worth about $207 million.
- Coatue Management: Owns 5.8% of the company, worth about $185 million.

The successful IPO of Hinge Health could potentially pave the way for other digital health companies considering public market exits. It demonstrates investor appetite for innovative healthcare technology solutions, particularly those focused on virtual care and musculoskeletal health.

As the healthcare industry continues to evolve, with increasing emphasis on digital and remote care solutions, Hinge Health's public market performance will likely be closely watched by investors, industry analysts, and other digital health startups considering their own public market strategies.