Device IPOs Rebound

Start-Up compares step-up valuations in the recent spate of medical device IPOs to those of previous years.

Medical device IPOs have recently begun a modest resurgence, with four US device start-ups closing IPOs since the beginning of the year, and three more pending completion. In the chart below, we compared the average step-up multiples (these are calculated by dividing the pre- and post-money IPO valuations by the private money raised: a proxy for average private valuation) of these types of deals.

Notably, all the IPOs so far this year fetched post-money caps of well over $200 million, and the post-money cap-to-private...

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