Rock Health, a Silicon Valley venture capital fund and research firm, for the first time released a list of digital health startups that are likely to go public in the next 12 months.
To come up with the list, Rock Health looked at past digital health IPOs as well as at ones that are planned. The firm found that companies tended to IPO at an age of about 10 years, and after raising roughly $200 million. So Rock Health compiled a list of other venture-backed companies in a similar spot.
Five digital health companies recently announced plans to go public: Livongo, Health Catalyst, Change Healthcare, Phreesia, and Peloton. Excluding Change Healthcare, which is a spinoff from McKesson, the other four companies raised an average of $425 million from investors.
The announced IPOs end a multi-year stretch without any public offerings in the industry.
“Now we’re seeing a group that is mature enough for investors to take an interest in,” said Bill Evans, the CEO and managing director of Rock Health. “The public markets are beginning to understand that these companies are transforming healthcare. They’re realizing that there’s a lot of value to unlock.”
Read more: Digital health startups worth $7.6 billion are set to go public, breaking a 3-year drought. Here’s what 5 top VCs are keeping an eye on.
Rock Health reports $4.2 billion was invested in digital health in the first half of 2019. That puts venture-capital investment in digital health on pace to exceed 2018’s total of $8.2 billion.