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Deals

Hinge Health eyes IPO after raising $300 million

Daniel Perez and Gabriel Mecklenburg, founders of Hinge Health pose in this undated handout picture. Hinge Health/Handout via REUTERS

(Reuters) - Hinge Health plans to go public next year after raising $300 million from investors led by Coatue Management and Tiger Global Management at a valuation of $3 billion, the U.S. digital health firm’s chief executive told Reuters in an interview.

The latest funding round came after the digital physical therapy platform quadrupled its revenue in 2020, as more consumers accessed the healthcare system from home during the COVID-19 pandemic.

Hinge Health was last valued at $428 million in February 2020, according to a person familiar with the company.

Based in San Francisco, the company provides digital solutions for chronic musculoskeletal pain, including wearable sensors, exercise therapy and health coaching. It sells to over 300 self-insured employers, counting enterprises like Boeing Co and Walgreens Boots Alliance among its customers.

“We’re targeting a 2022 IPO,” Daniel Perez, chief executive at Hinge Health, said. “We’ve passed $100 million revenue with clear momentum to $200 million. There is a secular trend towards digitization and healthcare, and we were feeling these tailwinds even pre COVID.”

Perez said his firm will look for innovation in pricing in an IPO to eliminate huge first-day trading pops some tech companies have seen. Airbnb Inc, for example, opened at $146 per share on its first day of trading, more than doubling the $68 per share price set by underwriters and the company and causing concerns about leaving money on the table.

The latest funding round will make Hinge one of the most valuable startups in digital health. It plans to use the fresh capital for hiring medical staff, expanding to new geographies including Germany and the UK, and acquisitions.

Last year was the largest funding year ever in U.S. digital health sector, with over $10 billion in venture funding, according to Rock Health. Notable deals include telehealth company Ro’s $200 million funding round, and American Well Corp AMWL.N landing $194 million in a private round before going public last September.

Reporting by Krystal Hu in New York; editing by Philippa Fletcher

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