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The healthcare market looks nearly ready for the next wave of IPOs. But the next wave of public healthcare companies looks to be on the horizon. At least two healthcare companies are considering public-market debuts in the not-so-distant future. SVB SecuritiesI spoke with him about what the next wave of healthcare IPOs could bring — and which healthcare startups are in the best position to test the public markets. What models do you expect the healthcare market to favor in this next round of IPOs?
Persons: Jon Swope, , It's, Health confidentially, haven't, there's, Waystar, healthtech Organizations: Barclays, Service, Health, healthtech, SVB Securities, Accolade, Healthcare, Walmart, Big Tech Locations: IPOs, healthtech, Waystar
SVB Securities' Jon Swope thinks some digital-health startups will IPO in the second half of 2023. In 2021, 15 US-based digital-health companies went public via IPO, according to Rock Health. Only one digital-health company has gone public this year: Akili Interactive Labs, which went public in August in a SPAC deal. Seeing the writing on the wall, digital-health companies like Komodo Health that sought to IPO this year are now putting those plans on hold. But SVB Securities' Jon Swope said he thinks the IPO market will reopen for certain digital-health companies in the second half of 2023.
Komodo Health has ditched its plans for an initial public offering in the near future. Digital health's IPO desertGlobally, only six digital health companies have gone public via IPO in 2022 so far, according to a report by Galen Growth and Finn Partners. Besides Komodo, two other digital health companies were said to be pursuing an IPO earlier this year before the market slipped. "The IPO market is shut right now, for all intents and purposes," said Jon Swope, who leads SVB Securities' digital health and healthtech business. "How soon will we see the return of that for the IPO market?"
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