As the IPO market cautiously rebounds in 2025, a spotlight is once again shining on healthcare startups a sector that combines rapid innovation, recession-resistant demand, and high growth potential. After a drought in public listings caused by rising interest rates and market volatility, venture capitalists and bankers alike now see a window of opportunity reopening.
According to multiple investment bankers, VCs, and analysts we spoke with, these nine healthcare startups are leading candidates to hit the public markets next. They span digital health, biotechnology, AI diagnostics, and precision medicine and each one has the potential to become a game-changer in its space.
Below is a deep dive into the nine startups investors are watching closely complete with revenue estimates, valuation potential, and public market readiness.
1. Tempus
Headquarters: Chicago, IL
Sector: AI-powered precision medicine
Estimated Valuation: $8–10 billion
CEO: Eric Lefkofsky
Tempus is at the forefront of using artificial intelligence to personalize cancer treatment. The startup collects and analyzes massive datasets to help oncologists make more informed treatment decisions. With a growing portfolio of diagnostics and real-world evidence platforms, the company has already partnered with major pharma companies and hospitals.
IPO Signals:
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Hired financial advisors in early 2025
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Has reached late-stage maturity with a diversified product pipeline
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Revenue reportedly crossed $500 million in 2024
Why It Matters: Tempus combines software margins with clinical relevance, a rare balance in digital health. Investors believe its platform approach could rival legacy lab giants post-IPO.
2. Somatus
Headquarters: McLean, VA
Sector: Kidney care & value-based care
Estimated Valuation: $2.5–3 billion
CEO: Ikenna Okezie
Somatus provides in-home kidney care with a focus on reducing hospitalizations and improving outcomes. The company contracts directly with payers and operates in the booming "value-based care" segment of the healthcare industry.
IPO Signals:
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Closed a Series E round in late 2024
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Recently signed multi-year agreements with large Medicare Advantage plans
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Profitability in select regions
Why It Matters: Chronic kidney disease is a massive cost center in U.S. healthcare, and Somatus addresses it directly an appealing story for both public investors and CMS-aligned innovation advocates.
3. Cedar
Headquarters: New York, NY
Sector: Healthcare payments & revenue cycle
Estimated Valuation: $2–2.5 billion
CEO: Florian Otto
Cedar simplifies the billing experience for patients while helping providers get paid faster. Think of it as the Stripe of healthcare billing. Its technology integrates with EHR systems to provide real-time insurance updates, payment plans, and patient engagement tools.
IPO Signals:
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Reached cash flow positivity in Q1 2025
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Strong SaaS metrics: 120% net revenue retention
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Has expanded into large health system contracts
Why It Matters: The consumerization of healthcare means billing transparency is critical. Cedar is seen as a leader in health fintech a rare blend of regulatory-savvy innovation.
4. Carbon Health
Headquarters: San Francisco, CA
Sector: Hybrid primary care and urgent care
Estimated Valuation: $3–4 billion
CEO: Eren Bali
Carbon Health operates tech-enabled clinics and telehealth services across the U.S. The company differentiates by combining brick-and-mortar clinics with a robust mobile app, offering 24/7 care for everything from flu shots to chronic disease management.
IPO Signals:
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Cut unprofitable operations in 2023–24
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Now profitable at the clinic level
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Board has added public market-ready CFO
Why It Matters: The hybrid care model is gaining traction post-COVID. Carbon Health’s strong brand, data backbone, and operational discipline make it a compelling IPO story.
5. Noom
Headquarters: New York, NY
Sector: Digital weight loss & behavior change
Estimated Valuation: $1.8–2 billion
CEO: Geoff Cook
Noom built its brand around psychology-based weight loss, and recently expanded into mental health, diabetes management, and prescription-based obesity care. Its transition from a consumer wellness app to a reimbursed digital health platform is underway.
IPO Signals:
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Launched Noom Med with GLP-1 prescriptions
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Substantial revenue growth in 2024 driven by medical partnerships
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Shifted toward insurance billing models
Why It Matters: Investors are bullish on the “Ozempic economy” and Noom is well-positioned as a digital front-door provider in the GLP-1 weight loss revolution.
6. Biofourmis
Headquarters: Boston, MA
Sector: Remote patient monitoring and digital therapeutics
Estimated Valuation: $1.3–1.8 billion
CEO: Kuldeep Singh Rajput
Biofourmis develops AI-powered tools for monitoring patients with chronic conditions remotely. Its flagship product is used in heart failure and oncology, and the startup recently secured major pharma partnerships for real-world evidence generation.
IPO Signals:
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FDA clearances for key software tools
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Growing international footprint in APAC and EMEA
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Raised pre-IPO bridge round in 2025
Why It Matters: Biofourmis taps into the “hospital at home” movement — which is cost-efficient and increasingly reimbursed by insurers. It also positions itself as a platform for pharma commercialization.
7. Hinge Health
Headquarters: San Francisco, CA
Sector: Digital musculoskeletal (MSK) care
Estimated Valuation: $5–6 billion
CEO: Daniel Perez
Hinge Health is one of the biggest digital MSK platforms, offering app-based physical therapy for back and joint pain. It's used by major employers and payers to reduce surgery rates and opioid use.
IPO Signals:
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Reached profitability on core MSK product
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Launched adjacent offerings (pelvic health, women’s PT)
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Built a 1M+ user base with employer contracts
Why It Matters: MSK is a top cost driver in employer healthcare. Hinge’s clinically validated outcomes make it a darling among digital health investors.
8. Brightline
Headquarters: Palo Alto, CA
Sector: Pediatric behavioral health
Estimated Valuation: $800M–1 billion
CEO: Naomi Allen
Brightline focuses on virtual therapy and behavioral health coaching for children and teens. With youth mental health in crisis and a shortage of pediatric providers, the startup is filling a critical care gap.
IPO Signals:
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Signed Medicaid managed care contracts
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Expanded into all 50 states via telehealth
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Built partnerships with school systems
Why It Matters: Pediatric behavioral health is a massively underserved market. Brightline’s early-mover advantage could attract ESG-aligned public investors.
9. Sword Health
Headquarters: Porto, Portugal & NYC
Sector: AI-powered physical therapy
Estimated Valuation: $2–2.5 billion
CEO: Virgílio Bento
Sword Health uses sensors and AI to deliver virtual physical therapy programs. It positions itself as more scalable and data-driven than in-person PT or manual app-based services.
IPO Signals:
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Surpassed 1 million completed therapy sessions
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Deep integration with health plans and employers
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Recently hired Head of Investor Relations
Why It Matters: Sword’s tech-first approach could make it a standout IPO candidate in the value-based MSK space.
Why These Startups, and Why Now?
Bankers believe these nine startups are in a sweet spot: large TAMs (Total Addressable Markets), proven models, de-risked regulatory pathways, and clear paths to profitability. Unlike previous SPAC-era darlings, these companies have:
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Multiple years of revenue data
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Real-world clinical validation
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Partnerships with payers, pharma, or providers
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Growth stories that appeal to institutional investors
The timing is also key: The S&P is stabilizing, Fed rates may taper off in late 2025, and institutional capital is once again open to growth stories particularly in healthcare, which tends to outperform during economic uncertainty.
Key Themes Driving Investor Interest
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The Shift to Value-Based Care: Startups like Somatus and Hinge Health directly align with the payer-driven push to reduce wasteful spending and improve outcomes.
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The Rise of GLP-1 Obesity Meds: Noom’s pivot into prescription obesity treatment taps into a $100B+ potential market.
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AI in Healthcare: Tempus, Biofourmis, and Sword Health all leverage artificial intelligence for clinical decision-making, treatment personalization, and scalability.
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Healthcare Consumerization: From billing transparency (Cedar) to mental health access (Brightline), these startups meet rising consumer expectations for usability and empathy.
A Reopened Door for Healthcare IPOs
After nearly two years of IPO silence in the healthcare space, these nine startups are now in prime position to go public. Whether they choose a traditional IPO, direct listing, or even a strategic SPAC, investors believe each of them could ignite the public markets and reinvigorate confidence in the next generation of healthcare innovation.
As 2026 approaches, expect these names to dominate not just pitch decks but headlines.
