Hinge Health, this digital physical therapy company, had its first day of trading on the New York Stock Exchange on Thursday, closing at $37.56, which was up about 17% from the $32 IPO price it set just the day before. That’s a pretty good start, right? But even with that little jump, Hinge’s public valuation is actually way less than its last private market one. The company, which is about 11 years old, has an approximate market capitalization of around $3 billion, excluding employee options. This number is less than half of the $6.2 billion valuation Hinge got during its Series E funding round in October 2021, led by Tiger Global Management.

Companies used to be super scared of having down-round IPOs, you know? Like, they really didn’t want to go public for less than what they were worth in the private market. But now, the stigma around that has kind of gone away, especially if that private valuation was during the crazy years of 2020-2021. Some examples of companies whose IPOs were priced lower than their last private valuations include Reddit, which came out last year at around $5.4 billion, which is like half of its $10 billion valuation from 2021. Then there’s ServiceTitan, whose IPO valued it at $6.3 billion, lower than the $7.6 billion it got in a Series H round two years before that.

When Hinge Health had its IPO, it raised a total of $437 million, with $237 million going straight to the company and the rest to its existing investors. The biggest shareholders outside of the company are Insight Partners, holding 19% of all the stock, and Atomico, which has 15% of all shares. Other VC firms that own around 8% of Hinge’s shares include 11.2 Capital, Coatue, Tiger Global, and Bessemer Venture Partners. The co-founders, Daniel Perez and Gabriel Mecklenburg, own 18.9% and 8.2% of the company, respectively.

Hinge Health is all about reducing musculoskeletal pain using wearable sensors and computer vision technology that are monitored remotely by a team of physical therapists, physicians, and health coaches. They’re not alone in this digital health game, though. Omada Health, a 13-year-old startup, is also looking to go public soon. They offer virtual care for chronic conditions like diabetes and hypertension, competing directly with Hinge Health. Omada’s main shareholders include U.S. Venture Partners and Andreessen Horowitz, and they were last valued at just over $1 billion in 2022.

Hinge Health’s biggest competition right now is Sword Health, which was valued at $3 billion about a year ago. Sword Health’s CEO even mentioned the possibility of an IPO in 2025 if everything goes well and the economy is good. So, it’s a pretty interesting time in the digital health world, with all these companies trying to make a name for themselves and grow their businesses in new ways. Not really sure why this matters, but hey, it’s something to keep an eye on for sure!