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2025 could bring a wave of healthcare IPOs. Here's what startups should know, according to a top banker.
- The healthcare market looks nearly ready for the next wave of IPOs as the next round of healthcare companies look to be on the horizon.
- At least two healthcare companies are considering public-market debuts in the near future.
- Jon Swope, a managing director in Barclays' healthtech division, told Business Insider he expects a pickup in healthcare IPOs in 2025 after a three-year drought.
- Large take-privates and declines in share prices are seen as challenging backdrop, however, the companies that went public or were already public are down by about 80%.
- The next set of IPOs is saif to focus more on growth and profitability.
- Three categories that are investible in healthtech and digital healthcare: data & technology, consumer-centric models, and value-based care.
- Companies with clear, simple stories while also being able to navigate the layers of the healthcare ecosystem in executing on their business model are most likely to succeed.
- Start-ups going public the right way by executing on the business and growing it in advance of an IPO will set the stage for an attractive IPO market.
- From 2019 through 2021, nearly 20 companies went public through IPOs or SPACs in healthtech.
- M&A is set to pick up particularly in an easing financing environment and macro backdrop where bid-ask spreads are narrowing.
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