MindBody Files $100 Million IPO, Industry Experts Weigh In On Who’s Next

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While digital health funding levels have plateaued thus far in 2015, M&A activity is still very active across the industry. Year to date, both Fitbit and Teladoc have announced $100 million-plus IPOs, and this week another health IT company is adding its name to the ranks. Mindbody is a San Luis Obispo, Calif-based startup that markets a software platform designed to run the business side of fitness and yoga studios. Mindbody is targeting a fundraising round of $100 million in its IPO.

Since its 1998 launch, Mindbody has raised $108 million in funding and is backed by healthcare heavyweights including Catalyst Investors, Bessemer Venture Partners, and W Capital Partners. In its IPO filing, Mindbody’s valuation sits at $700 million. The company pulled in $70 million in revenue in 2014, a 44-percent increase from 2013.

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With Mindbody, Fitbit, and Teladoc preparing for 2015 public offerings, Rock Health polled its network of digital health experts to find out who insiders think will be the next to go public. Jawbone was the most popular response, with 20 percent of respondents indicating that the fitness tracker manufacturer was the most logical candidate. Practice Fusion, Health Catalyst, and digital medicines startup Proteus Digital Health were also high on the list.

Interestingly, Proteus stands out on the list as one that has yet to generate the level of revenue many expect it has the potential to, despite more than $250 million in equity funding. The company has created a small sensor that can detect when it has been swallowed. Eventually, Proteus would like to embed the sensors directly into pills to support medication adherence, but regulatory hurdles have prevented this from coming to fruition despite the technology being readily available. Another startup with lots of votes but little in the way of revenue is Flatiron, a Google Ventures-backed data analytics startup focusing on delivering clinical decision support to oncologists. The company raised an unprecedented $130 million Series B in May 2014, but has been largely quiet since.

Funding activity began its skyrocketing trajectory in 2011, after the American Recovery and Reinvestment Act and the Affordable Care Act incentivized various changes to care delivery that hospitals and health systems turned to IT startups to solve. Now, with hundreds of startups maturing in the market, IPO activity should continue to ramp up. According to CBInsights, companies approach their IPOs after seven years of growth, and after raising an average of $73 million in VC funding, meaning that while funding is plateauing, the digital health sector itself is still maturing.


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