The Heart of Healthcare | A Digital Health Podcast š£ Digital Health Download: June 2025
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Jun 2, 2025 Can the digital health IPO drought finally be over? A deep dive into Hinge Health's IPO reveals insights for future market trends. Learn about the surprising equity stakes founders hold and the shifting landscape of private investment. Meanwhile, legal twists surface as Elizabeth Holmes' husband launches a dubious startup, and a former McKinsey partner faces prison over the opioid crisis. Plus, OpenAI's intriguing collaboration with the FDA raises eyebrows. Itās a fascinating mix of innovation and controversy in healthcare!
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Hinge Health IPO Signals Recovery
- The Hinge Health IPO signals a thaw in the digital health IPO drought since late 2021.
- It's a sign that stronger, more disciplined companies are emerging with sustainable growth paths.
Founder Equity at IPO is Low
- Founders usually hold very little equity by IPO, often under 5%, with many holding none at all.
- Private equity firms are increasingly orchestrating IPOs with hired CEOs holding substantial pay and equity.
Advice: Keep Funding Terms Simple
- Founders should accept down rounds with simple, clean terms to avoid complicated investor preferences.
- Aim for 1X non-participating preferred stock to keep dilution manageable and enable future growth.