SAN FRANCISCO, July 8, 2025 — A new generation of digital health startups is preparing to enter public markets, signaling a growing investor appetite for technology-driven healthcare solutions. At least nine private health tech companies are actively exploring Initial Public Offerings (IPOs) between late 2025 and 2026, following in the footsteps of recently public players like Hinge Health and Omada Health.

Among the most closely watched is Datavant, a health data connectivity platform reportedly valued at around $7 billion, which is expected to be one of the largest digital health IPOs since the sector’s pandemic-era surge.

The Next Digital Health Public Cohort

Other expected IPO candidates include:

  • Lyra Health – Mental health benefits provider for employers

  • Spring Health – Personalized mental healthcare platform

  • Virta Health – Specializing in reversing type 2 diabetes through telemedicine

  • Sword Health – Digital physical therapy solutions

  • Transcarent – Care navigation and benefits optimization

  • Cityblock Health – Primary care for underserved populations

  • Carbon Health – Hybrid in-person and digital care provider

  • Noom – Behavior-based weight loss and wellness app

Several of these companies have already confidentially filed or hired advisors, according to sources familiar with the matter. Most aim for IPOs by mid to late 2026, depending on market conditions and revenue performance in 2025.

Why Now?

Analysts point to multiple drivers behind the timing:

  1. Maturing business models – Many of these startups have passed the early-growth stage and are generating substantial recurring revenue, some even nearing profitability.

  2. Employer and payer demand – There’s rising institutional demand for cost-saving, outcomes-based digital solutions, especially in mental health, chronic condition management, and musculoskeletal care.

  3. Stronger IPO market – After a two-year slowdown, the IPO window is cautiously reopening as tech valuations stabilize and interest rates plateau.

  4. Peer momentum – Hinge Health’s and Omada’s successful market debuts in early 2025 have reassured investors about public appetite for health tech.

Cautious Optimism

Despite the renewed interest, investors are proceeding with caution. Previous digital health IPOs during the 2020–2021 boom faced post-listing volatility, with several high-profile names underperforming after launch.

“Investors are looking for clear paths to profitability, not just growth,” said a healthcare venture partner at a leading firm. “The next wave will need to prove value in real clinical outcomes and cost control, not just engagement.”

Outlook for the Sector

The next 18 months could reshape the competitive landscape in digital health. Public listings will provide capital for expansion and potential consolidation, while also offering greater transparency into unit economics, patient outcomes, and business sustainability.

If successful, this IPO wave could also revitalize confidence in healthcare innovation at a time when both public systems and private payers are under pressure to modernize and cut costs.