Several hedge funds are gearing up for a rare and much-anticipated initial public offering this week.
Hinge Health plans to sell 13.7 million shares for between $28 and $32 apiece. The total includes about 8.5 million shares from the company and more than 5.1 million from shareholders selling stakes, according to a regulatory filing. The company expects to raise about $437 million and be valued at nearly $2.98 billion.
Hinge Health is a revolutionary business that uses software and artificial intelligence to provide automated care for patients with joint and muscle pain.
“Members receive personalized and largely automated musculoskeletal care through our AI-powered motion tracking technology and a proprietary electrical nerve stimulation wearable device, all designed and monitored by our AI-supported care team of licensed physical therapists, physicians, and board-certified health coaches,” the company explains. The platform also can improve health outcomes by allowing people to engage in therapy sessions remotely.
In 2024, the company reported a net loss of $12 million on $390 million in revenue. It also had $45 million in free cash flow.
Two of the most active Tiger Cubs in the venture capital market have been major investors over the years and have significant stakes in Hinge Health. Before the offering, Tiger Global Management owned 8.7 percent and Coatue Management 7.4 percent of the shares.
Back in January 2021, Tiger Global and Coatue co-led a $300 million Series D financing round. The deal valued Hinge Health at $3 billion. Then in October 2021, Tiger Global and Coatue led Hinge Health’s $400 million Series E financing, which valued the company at $6.2 billion — meaning it more than doubled in just nine months.
Another high-profile hedge fund also participated in the Series E financing round: Whale Rock Capital Management made an investment as part of a $200 million secondary investment, according to a press release at the time. However, it was not identified in the IPO filing as a 5 percent owner of Hinge Health.
