Hinge Health just broke open the digital health IPO market. Here’s who’s getting rich.

Physical therapy startup Hinge Health finally went public Thursday in a watershed moment for the digital health market.

Hinge Health’s stock price popped after debuting on the New York Stock Exchange, soaring to $39.25 per share, 23% above its initial public offering price of $32 a share.

The $32 IPO share price valued Hinge Health at about $2.6 billion, based on shares outstanding after the IPO. At the market close, however, the company was worth about $3 billion.

It’s a strong start for Hinge Health’s public market debut, and the first true glimmer of hope for the digital health IPO market in years.

The last wave of healthcare public market exits, in 2021, saw 23 healthcare companies go public via IPO or SPAC. In the following three years, only four healthcare companies went public. Only two of those, Waystar and Tempus AI, are still trading on the stock market.

Hinge Health, founded in 2014 to provide virtual care for musculoskeletal conditions, was forced to consider a delay for its IPO plans in early April after President Donald Trump announced sweeping tariffs on imported goods from other countries, causing a sharp drop in the stock market. It resumed those efforts publicly this month as the market stabilized.

Hinge Health raised $437 million in the IPO, which included $273 million in proceeds to the company and $164 million to its selling shareholders.

Hinge Health’s $2.6 billion IPO valuation is a 52% markdown from its last private valuation of $6.2 billion. It notched that valuation in a 2021 $400 million Series E round co-led by Tiger Global and Coatue Management.

We don’t know what Hinge Health’s investors paid for their shares, so we can’t calculate their profit. However, since Hinge Health’s shares opened on the stock market at $39.25, we used that price to determine the worth of their stakes.

Here’s what the stakes of all of Hinge Health’s major investors and executives are worth after the IPO.

Insight Partners, an investor: $433 million

Venture capital and private equity firm Insight Partners owns the largest stake in Hinge Health with about 12.3 million shares, or 13.7% of the company.

The firm led Hinge Health’s $26 million Series B fundraise in 2018. Teddie Wardi, a managing director at Insight Partners, has served on Hinge Health’s board of directors since the firm’s investment.

Insight Partners later participated in Hinge Health’s Series C and D rounds in 2020 and 2021, respectively.

Insight Partners sold 1.25 million shares in Hinge Health’s IPO, which at the $32 IPO price would have brought in $40 million.

At the $39.25 market debut price, the firm’s remaining stake is worth about $433 million.

Daniel Perez, cofounder and CEO: $414 million

Daniel Perez’s first encounter with physical therapy came after a bike crash when he was 13 years old, which forced him to undergo three surgeries and 12 months of rehabilitation.

He started Hinge Health alongside executive chairman Gabriel Mecklenburg to improve the accessibility of musculoskeletal care and reduce the specialty’s reliance on surgeries and opioids.

Hinge Health is Perez and Mecklenburg’s third venture, after the Oxbridge Biotech Roundtable, which aimed to bridge the gap between life sciences academia and markets, and Marblar, a platform designed to generate commercial uses for scientific discoveries.

Perez is Hinge Health’s largest individual shareholder. He owns about 10.6 million shares, or 13.1% of the company. He didn’t sell any shares in the IPO.

At the $39.25 market debut price, his stake is worth about $414 million.

Atomico, an investor: $309 million

Atomico is a London-based venture firm started in 2006 by Skype cofounder Niklas Zennström. The firm led Hinge Health’s $8 million Series A in 2017, when the startup was based in London. (Hinge Health moved its headquarters to San Francisco the same year.)

Atomico later participated in Hinge Health’s Series B, C, and D funding rounds.

Atomico owns about 7.9 million shares, or 9.8% of the company. The firm sold 1,497,546 shares in the IPO, which at the IPO price of $32 would have brought in about $48 million.

At the $39.25 market debut price, the firm’s remaining stake is worth about $309 million.

Tiger Global, an investor: $207 million

Investment firm Tiger Global first backed Hinge Health in 2021, co-leading its $300 million Series D alongside Coatue Management. In October of that year, Tiger Global also co-led the company’s $400 million Series E, also alongside Coatue.

The $400 million Series E round boosted Hinge Health to the $6.2 billion valuation that Hinge Health was forced to slash in its IPO. Tiger Global has drawn criticism in recent years for backing startups at extraordinarily high valuations, particularly during 2021’s venture investment peak.

Tiger Global owns about 5.3 million shares, or 6.5% of the company. The firm sold 258,183 shares in the IPO, which at the IPO price of $32 would have brought in about $8.3 million.

At the $39.25 market debut price, the firm’s remaining stake is worth about $207 million.

Coatue Management, an investor: $185 million

New York-based Coatue Management invests across all private and public fundraising stages, with venture capital, private equity, and hedge fund management units. The firm co-led Hinge Health’s $300 million Series D alongside Tiger Global in January 2021, then co-led its $400 million Series E with Tiger Global that October.

Hinge Health’s S-1 filing notes that Coatue will sell $50 million in Series E preferred shares back to the company immediately before Hinge’s IPO. That agreement was created in February, per the filing. The company didn’t share a reason for the stock repurchase.

Coatue owns about 4.7 million shares of common stock, or 5.8% of the company. The firm didn’t sell any shares in the IPO.

At the $39.25 market debut price, the firm’s stake is worth about $185 million.

11.2 Capital, an investor: $169 million

San Francisco-based 11.2 Capital backs early-stage tech startups and wrote one of the first checks into Hinge Health.

The firm led Hinge Health’s seed round in 2016, and invested further in its Series A, B, C, and D rounds, according to the firm.

11.2 Capital owns about 4.3 million shares, or 5.4% of Hinge Health. The firm sold 788,691 shares in the IPO, which at the IPO price of $32 would have brought in about $25 million.

At the $39.25 market debut price, the firm’s remaining stake is worth about $169 million.

Bessemer Venture Partners, an investor: $161 million

Bessemer Venture Partners backs early-stage and growth-stage startups through venture and private equity investments. The firm has more than 300 companies in its portfolio, according to its website.

Bessemer led Hinge Health’s $90 million Series C in February 2020. Bessemer partner Elliott Robinson has served on Hinge Health’s board of directors since that round.

The firm also participated in Hinge Health’s $300 million Series D round in January 2021.

Bessemer Venture Partners owns about 4.1 million shares, or 5.1% of the company. The firm sold 725,066 shares in the IPO, which at the IPO price of $32 would have brought in about $24 million.

At the $39.25 market debut price, its remaining stake is worth about $161 million.

Gabriel Mecklenburg, cofounder and executive chairman: $158 million

Gabriel Mecklenburg cofounded Hinge Health alongside Perez, personally inspired by the months of physical therapy he completed after tearing his ACL in a judo sparring session.

Mecklenburg served as the company’s COO for six years. It was a familiar role for him; he’d held the COO title at the two companies he started with Perez before Hinge Health, Oxbridge Biotech Roundtable and Marblar.

In 2021, he transitioned to his current role of executive chairman. In addition to his work with Hinge Health, he’s served on the board of addiction care startup Pelago since 2022.

Mecklenburg owns about 4 million shares, or 4.9% of the company. He did not sell any shares in the IPO.

At the $39.25 market debut price, his stake is worth about $158 million.

IP2IPO, an investor: $42 million

IP2IPO, named IP2IPO Portfolio LP in Hinge Health’s S-1, specializes in moving innovative technologies, talent, and intellectual property from academic institutions to commercial industries.

Both Perez and Mecklenburg stepped away from pursuing higher education degrees to build Hinge Health. Perez was taking a leave of absence from a Ph.D. program in biochemistry at the University of Oxford, while Mecklenburg was researching musculoskeletal regenerative medicine at Imperial College London.

IP2IPO is a subsidiary of IP Group, a London-based firm that backs breakthrough science and tech companies. IP Group says it’s the founding investor in Hinge Health.

The firm told BI it actually invested in Marblar, Perez and Mecklenburg’s previous startup, back in 2012. That investment rolled over into Hinge Health.

“As the UK’s leading investor in university spinouts, we met Dan whilst he was in Oxford, working on brilliant ideas and showing real entrepreneurial spirit and tenacity,” said Robert Trezona, a partner at IP Group. He said IP Group invested around £1 million, or about $1.12 million at the time, shortly after meeting Perez.

IP2IPO owns about 1.1 million shares, or 1.3% of the company. The firm sold about 47,000 shares in the IPO, which at the IPO price of $32 would have brought in about $1.5 million.

At the $39.25 market debut price, its remaining stake would be worth about $42 million.

Heuristic Capital, an investor: $40 million

Early-stage VC firm Heuristic Capital was founded in 2016, and first invested in Hinge Health’s seed round that same year.

The Santa Clara, California-based firm then invested in Hinge Health’s four subsequent raises, from Hinge Health’s Series A to its Series D. Heuristic Capital told BI that the Hinge Health team worked out of the firm’s San Francisco office in the startup’s early days, moving into an independent office in the Bay Area after successfully closing a Series A round.

The firm owns about 1 million shares of Hinge Health, or 1.3% of the company. It sold 194,305 shares in the IPO, which at the initial share price of $32 would have brought in about $6.2 million.

At the $39.25 market debut price, its remaining stake would be worth about $40 million.

Jim Pursley, president: $24 million

Longtime digital health executive Jim Pursley joined Hinge Health as its president in 2021. He’d previously worked with the Hinge Health team as an advisor from 2017 to 2019.

Pursley came to Hinge Health from Livongo, where he spent six years as the diabetes company’s chief commercial officer through its 2019 IPO. He left the company shortly after Livongo announced its $18.5 billion acquisition by Teladoc in 2020.

He also held leadership roles at GE Healthcare and Care Innovations, a joint venture between Intel and GE.

In addition to his role at Hinge Health, he serves as an independent board member at digital therapeutics company Bodyport.

Pursley owns about 604,665 shares. He did not sell any shares in the IPO.

At the $39.25 market debut price, his stake is worth about $24 million.

The Vertical Group, an investor: $22 million

The Vertical Group, named in Hinge Health’s S-1 as Vertical GP-8, is a Basking Ridge, New Jersey-based firm that invests in healthcare and biotech companies. Vertical invested in Hinge Health’s seed and Series A funding rounds, according to the firm.

The firm told BI that it previously sold a portion of its Hinge Health shares in a secondary transaction in 2021, at $77 a share, and another portion in a 2023 secondary sale, at $36 a share.

Vertical is also an investor in diabetes care startup Omada Health, according to the firm’s website. Omada is the only other digital health company to file to go public so far this year.

Vertical GP-8 owns 554,919 shares. The firm sold about 106,000 shares in the IPO, which at the IPO price of $32 would have brought in about $3.4 million.

At the $39.25 market debut price, the firm’s remaining stake is worth about $22 million.

Jon Reynolds, an angel investor: $14 million

Jon Reynolds is the cofounder and former CEO of SwiftKey, the AI-powered keyboard app acquired by Microsoft in 2016. He told BI he first backed Hinge Health that same year, participating in the startup’s seed and seed extension funding rounds.

Reynolds owned about 360,175 shares. He sold 68,605 shares in the IPO, which at the IPO price of $32 would have brought in about $2.2 million.

At the $39.25 market debut price, his remaining stake is worth about $14 million.

Industry Ventures, an investor: $12 million

San Francisco-based Industry Ventures makes VC bets using flexible capital structures, including secondary transactions and buyouts.

Hinge Health has never publicly announced a secondary transaction made by Industry Ventures. Hinge Health’s S-1 specifies that Industry Ventures invested in the company through its Secondary IX fund, which the firm announced in March 2021. Industry Ventures didn’t respond to a request for comment from BI.

Industry Ventures owns 307,259 shares. The firm sold 58,526 shares in the IPO, which at the initial share price of $32 would have brought in about $1.9 million.

At the $39.25 market debut price, its remaining stake is worth about $12 million.

James Budge, CFO: $6.8 million

Serial CFO James Budge joined Hinge Health as its finance chief in 2023.

According to his LinkedIn, he’s been the CFO of at least eight other companies, spanning industries from workforce software to entertainment tech.

He’s also served on the board of directors of healthtech company Shadowbox since 2022.

Budge owns 172,241 shares. He did not sell any shares in the IPO.

At the $39.25 market debut price, his stake is worth about $6.8 million.

Kristina Leslie, board member: $343,000

Kristina Leslie joined Hinge Health’s board of directors in May 2024 as its audit chair.

Leslie, the former CFO of Dreamworks Animation, has spent nearly two decades serving on various company boards, including Glassdoor, CVB Financial Corp., and Rover. According to her LinkedIn, she currently sits on the boards of Sunstone Hotel Investors and Justworks and chairs the board of directors of Blue Shield of California.

Leslie owns 8,750 shares. She did not sell any shares in the IPO.

At the $39.25 market debut price, her stake is worth about $343,000.

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