Omada Health IPO signals healthier market, avoids ‘down-round’ trend

The stock market IPOs starts to feel healthier.

Omada Health, a 14 -year -old company offering virtual care for chronic conditions such as diabetes and hypertension between office visits, closed its first day of negotiation on Friday at $ 23 per share, at 21% of the $ 19 Introduction Prize.

The IPO estimated the company just above $ 1 billion (excluding employee options), a figure almost identical to Omada’s last private assessment of $ 1 billion in its previous venture capital round. The beginning is one of the first among the recent IPOs which were not so-called round. Many of the latest public announcements, including Hinge,, ServitanAnd RedditAt the price of less than their peaks in the private market, but behaved well as public enterprises.

For the founder and CEO of Sean Duffy, the successful public offer validates his decision to create a business which he believed that the market was desperately needed. In 2011, he abandoned the Harvard Medical School after realizing that patients with chronic disease required more continuous support than the existing health system.

Before the offer, it had 4.1% of the company, according to Omada Tender. Other important shareholders included revelation partners (10.9%), American capital partners (9.9%), Andreessen Horowitz (9.6%) and RMR (9.3%).

Duffy told Techcrunch that during his 14 -year -old trip as a founder, he had many painful moments.

“I did not think that our series was going to meet because we were working on this commercial offer which did not materialize and which frightened an investor,” he said.

“As a young company, something is trying to kill you every month,” he continued. “And then as the company develops, it turns into every quarter or six months, year, two years.”

One of the recent challenges for many digital health companies is to navigate the collapse of post-comfortable market boom. Omada has sailed in turbulent times seeking new uprights. He recently widened his offers to include support for diet management for GLP-1 patients.