50+ Publicly Traded Digital Health Companies
What they do, when and how they IPOd, and their current market cap
The last few years have witnessed an extraordinary shift in digital health, with new technologies increasingly becoming the cornerstone of modern healthcare services. This transformation has seen the maturing of many startups in our space, many of which are now household names: Teladoc, GoodRx, TalkSpace, etc..
As these venture-backed companies grow, many seek an exit. A significant number opt for public markets as a route, with some choosing the an Initial Public Offering (IPO) while others leverage the Special Purpose Acquisition Company (SPAC) route. But they all have the same goal: to unlock access to capital, provide liquidity to early investors, enhance their visibility, or facilitate future acquisitions.
In this article, we’ll discuss:
Digital health IPOs and SPACs by year
Digital health IPOs as a percent of all IPOs
Why would a company go public?
What is a SPAC vs IPO?
A list of 50 publicly traded digital health companies, what they do, when and how they IPOd, and their current market cap
Digital health IPOs and SPACs by year
There are currently over 50 publicly traded digital health companies, valued from $25M to over $53B, with a median value of $657M. Today, 19 of them are valued at $1B+ (to compare, there are 70+ privately held digital health companies valued at over $1B).
Forty-percent of the currently traded digital health companies went public in 2021, a year with unprecedented activity in the space (the previous two years each had six IPOs). This significant rise was, in part, spurred by the increasing popularity of SPACs. These 'blank check' companies became an attractive route for digital health firms looking to expedite their journey to the public market. Notably, out of the 20 digital health IPOs in 2021, 13 took the SPAC path.
Digital health IPOs as a percent of all IPOs
So how much of this is a reflection of the market vs. our specific vertical?
Digital health IPOs account for a paltry amount of the overall IPO activity, but does seem to be increasing over time. This increase not only signifies the growing importance of digital health, but also reflects the broadening interest of investors in the sector. As our industry matures, the influence and implications of digital health IPOs will extend well beyond their current representation in the IPO market.
Why would a company go public?
Going public refers to the process by which a privately held company sells a portion of its ownership to public investors for the first time through a process called an IPO or through a SPAC merger. This process involves listing the company's shares on a public exchange, such as the New York Stock Exchange or Nasdaq.
Companies typically consider going public, or conducting an IPO, for a few reasons:
To raise capital. Perhaps the most common reason to go public is to raise funds. Public companies can issue more shares in the future through secondary offerings, further raising capital.
For liquidity. IPOs offer an exit strategy for early investors and employees with equity, as it provides a market for these stakeholders to sell their shares.
For visibility and credibility. Being publicly traded can enhance a company's reputation and visibility in the marketplace, which can boost business.
But it’s not all gravy. Going public involves substantial costs (including underwriting and legal fees), compliance requirements, and ongoing public disclosure obligations, which can be burdensome. Public companies must answer to shareholders and are vulnerable to market fluctuations, which can put pressure on short-term performance.
What is a SPAC vs IPO?
IPOs and SPACS are both mechanisms for a company to go public, i.e., to list its shares on a stock exchange. However, they operate in fundamentally different ways.
IPO (Initial Public Offering)
This is the traditional process by which a private company becomes a publicly-traded one. The company works with underwriters (typically investment banks) to create a prospectus outlining the company's financial health, business model, and growth plans. The underwriters help price the offering and sell the shares to institutional and, sometimes, retail investors. After the IPO, the shares trade on a stock exchange. The IPO process can be lengthy and complex, involving regulatory scrutiny and substantial costs.
SPAC (Special Purpose Acquisition Company)
A SPAC, also known as a "blank check company," is an alternative to the traditional IPO. The SPAC goes public first with no commercial operations but with the purpose of raising capital to acquire an existing private company. The private company is identified after the SPAC's IPO, and the process of merging with the SPAC takes the private company public. The advantage of a SPAC is it can be a faster and less regulatory-burdened way for a private company to go public. Also, it allows for direct negotiations between the private company and the SPAC, which may lead to better pricing or terms.
Following a period of a thriving SPAC market in 2020 and 2021, the once-trendy SPAC market has faced a significant slowdown due to challenges and scrutiny from investors and regulatory bodies, as well as generally unfavorable market conditions. The market saturation and ensuing hype around SPACs reflect characteristics of a traditional market bubble, and many think the decline in SPAC popularity was inevitable.
A list of publicly traded digital health companies:
Data from NASDAQ, NYSE, and various news sources. Listed in order of highest market cap, as of July 2023. For a more updated list, including current market cap as well as delisted companies, download this database of digital health companies.
DexCom
An American company that develops, manufactures, and distributes continuous glucose monitoring systems for diabetes management.
Path: IPO
Year of IPO: 2005
Iqvia (fka Quintiles and IMS Health, Inc)
An American multinational company serving the combined industries of health information technology and clinical research.
Path: IPO
Year of IPO: 2013
Veeva Systems
A cloud-computing company focused on pharmaceutical and life sciences industry applications.
Path: IPO
Year of IPO: 2013
R1 RCM (fka Accretive Health)
A leading provider of technology-enabled revenue cycle management services across hospitals, health systems and physician groups.
Path: IPO
Doximity
A leading digital platform for medical professionals, offering a range of networking, communication, and education tools.
Path: IPO
Year of IPO: 2021
Teladoc Health
A multinational telemedicine and virtual healthcare company providing comprehensive telehealth service.
Path: IPO
Year of IPO: 2015
Schrodinger
A leading provider of advanced molecular simulations and enterprise software solutions and services to accelerate and increase the efficiency of drug discovery.
Path: IPO
Year of IPO: 2020
Progyny
A leading fertility benefits management company that combines clinical and emotional guidance and support, science, technology and data.
Path: IPO
Year of IPO: 2019
Evolent Health
A healthcare company that delivers proven clinical and administrative solutions to payers and providers.
Path: IPO
Year of IPO: 2015
Omnicell
A healthcare company that provides automation and business information solutions enabling healthcare systems to streamline the medication administration process.
Path: IPO
Year of IPO: 2001
Peloton Interactive
A global interactive fitness platform that brings boutique-style studio fitness classes to the convenience of home.
Path: IPO
Year of IPO: 2019
Irhythm Technologies
A digital healthcare company redefining the way cardiac arrhythmias are clinically diagnosed.
Path: IPO
Year of IPO: 2016
Privia Health Group
A national physician organization that transforms the healthcare delivery experience for providers and consumers.
Path: IPO
Year of IPO: 2021
Goodrx
A digital health company that provides telemedicine services and hosts a marketplace for self-pay and health insurance discounted pharmacy transactions.
Path: IPO
Year of IPO: 2020
Hims & Hers Health
A telehealth company initially focusing on men's health, later expanded to women's health.
Path: SPAC
Year of IPO: 2021
Definitive Healthcare
A leading provider of comprehensive, up-to-date and integrated data on hospitals, physicians, and other healthcare providers.
Path: IPO
Year of IPO: 2021
Oscar
A tech-enabled health insurance company.
Path: IPO
Year of IPO: 2021
Veradigm (fka Allscripts)
Practice management and electronic health record technology.
Path: IPO
Year: 2006
Model N
A company that provides revenue management solutions for the life sciences and technology industries.
Path: IPO
Year of IPO: 2013
Nextgen Healthcare
A provider of software, services, and analytics solutions to medical and dental group practices in the United States.
Path: IPO
Year of IPO: 1982
Accolade
A personalized health and benefits solution that improves the experience, outcomes and cost of healthcare.
Path: IPO
Year of IPO: 2020
DocGo
A leading provider of last-mile mobile health services and integrated medical mobility solutions.
Path: SPAC
Year of IPO: 2021
Simulations Plus
A premier developer of drug discovery and development software, which is licensed to and used in the conduct of drug research by major pharmaceutical companies worldwide.
Path: IPO
Year of IPO: 1997
Outset Medical
A medical technology company that manufactures and sells a hemodialysis system for kidney diseases and renal failure.
Path: IPO
Year of IPO: 2020
23andMe
A leading consumer genetics and research company, that enables every person to access, understand, and benefit from the human genome.
Path: SPAC
Year of IPO: 2021
HealthStream
A provider of workforce and provider solutions for the healthcare industry, committed to improving patient outcomes through the development of healthcare organizations' greatest asset: their people.
Path: IPO
Year of IPO: 2011
Health Catalyst
A leading provider of data and analytics technology and services to healthcare organizations, and is committed to being the catalyst for massive, measurable, data-informed healthcare improvement.
Path: IPO
Year of IPO: 2019
Sharecare
A digital health company that provides a comprehensive platform to assist users in managing their personal health and wellness.
Path: SPAC
Year of IPO: 2021
American Well
A global telehealth platform, aiming to connect and enable providers, insurers, patients, and innovators to deliver greater access to more affordable, higher quality care.
Path: IPO
Year of IPO: 2020
Thorne HealthTech
A science-driven wellness company that is utilizing testing and data to create improved product efficacy and deliver personalized solutions to consumers, health professionals, and corporations.
Path: IPO
Year of IPO: 2021
Clover Health
A tech-driven health insurance company that leverages data analytics and machine learning to deliver personalized healthcare to seniors.
Path: SPAC
Year of IPO: 2021
Owlet Baby Care
A healthcare technology company offering a range of smart nursery products to provide parents with vital information about their child's wellbeing.
Path: SPAC
Year of IPO: 2021
Butterfly Network
A digital health company that provides advanced imaging in medical fields, democratizing healthcare by making medical imaging accessible to everyone.
Path: SPAC
Year of IPO: 2021
GoHealth
A health insurance marketplace that specializes in matching consumers with Medicare Advantage, Medicare Supplement, and Prescription Drug Plan providers.
Path: IPO
Year of IPO: 2020
Computer Programs & Systems
A company providing healthcare information technology solutions and services to rural and community hospitals.
Path: IPO
Year of IPO: 2002
Invitae
A genetic information company whose mission is to bring comprehensive genetic information into mainstream medicine to improve healthcare for billions of people.
Path: IPO
Year of IPO: 2015
Sophia Genetics SA
A health tech company integrating clinical genomics and radiomics to power the data-driven medicine era.
Path: IPO
Year of IPO: 2021
Smile Direct Club
An oral care company and creator of the first medtech platform for teeth straightening, connecting customers with licensed orthodontists and producing clear aligners.
Path: IPO
Year of IPO: 2019
Vicarious Surgical
A company merging robotics and virtual reality to assist in minimally invasive surgery.
Path: SPAC
Year of IPO: 2021
Talkspace
A digital and virtual behavioral healthcare company offering online psychotherapy services.
Path: SPAC
Year of IPO: 2021
Tabula Rasa HealthCare
A healthcare technology company focused on improving patient-specific healthcare through technology applications.
Path: IPO
Year of IPO: 2016
GeneDx
A company focused on genetic testing, offering a broad range of tests for rare hereditary disorders.
Path: SPAC
Year of IPO: 2023
Augmedix
A company offering remote medical documentation and live clinical support services to health systems and clinics.
Path: SPAC
Year of IPO: 2021
Beachbody Company
An online fitness and nutrition company, delivering digital and physical health and wellness content and products.
Path: SPAC
Year of IPO: 2021
Neuropace
A company specializing in innovative neurotechnology for treating neurological disorders through responsive neurostimulation.
Path: IPO
Year of IPO: 2021
DarioHealth
A global digital therapeutics company revolutionizing the way people manage their health across the chronic condition spectrum.
Path: IPO
Year of IPO: 2019
Akili Interactive
A prescription digital medicine company creating treatments for cognitive impairments and mental health disorders.
Path: SPAC
Year of IPO: 2022
Phreesia
A healthcare company providing a suite of robust applications to manage healthcare appointments and check-in processes.
Path: IPO
Year of IPO: 2019
Streamline Health Solutions
An industry leader in providing healthcare information technology solutions for hospitals and healthcare systems.
Path: IPO
Year of IPO: 1996
Movano
A tech company developing wearable devices for continuous glucose monitoring and other health tracking metrics.
Path: IPO
Year of IPO: 2021
Cue Health
A health technology company developing and manufacturing medical diagnostic products for professionals and consumers.
Path: IPO
Year of IPO: 2021
Uphealth
A global comprehensive digital health technology and tech-enabled services platform that empowers providers, health systems, and payers.
Path: SPAC
Year of IPO: 2021
Better Therapeutics
A developer of prescription digital therapeutics for the treatment of cardiometabolic conditions.
Path: SPAC
Year of IPO: 2021
Science 37
A clinical research company utilizing technology to create decentralized trial models for improved patient accessibility and engagement.
Path: SPAC
Year of IPO: 2021
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