The IPO market is beginning to get healthy.
Omada Health, the 14-year-old company offering virtual care for chronic diseases such as diabetes and hypertension during office visits, concluded its first trading day at $23 per share on Friday, with IPO prices jumping from $19 to 21%.
The IPO rated the company as slightly above $1 billion (excluding employee options). This is roughly the same as Omada’s last private rating, which was $1 billion in the previous VC round. The debut was one of the first of recent IPOs that were not what we call down-rounds. Many of the latest public lists, including Hinge, ServiceTitan and Reddit, have become fair as public companies, but are below private market highs.
For founder and CEO Sean Duffy, a successful public offer examines his decision to start a company that the market believed was desperately needed. In 2011, he dropped out of Harvard Medical School after realising that chronically ill patients needed more continuous support than existing health care systems could offer.
According to Omada’s provided documents, before offering, he owned 4.1% of the company. Other significant shareholders include Revelation Partners (10.9%), US venture partners (9.9%), Andreessen Horowitz (9.6%), and FMR (9.3%).
Duffy told TechCrunch that in his 14-year journey as founder, he has many tragic moments.
“We were working on this commercial deal that we didn’t realize, so we didn’t expect our Series A to come together.
“As a young business, something tries to kill you every month,” he continued. “And as the business grows, it changes quarterly, six months, years, two years.”
One recent challenge for many digital health businesses is navigating the “collapse” of the post-Covid post-boom market. Omada has run through turbulent times in search of new rising markets. Recently, we expanded our offering to include dietary management support for GLP-1 patients.