With health tech companies emerging as some of the biggest draws for venture capital and consumer investment in this new year, it’s no surprise that the health tech boom is impacting IPO pricing.
According to sources close to Castlight Health, the health-software maker is upping its IPO share price range to $13-to-$15 from the previously announced $9-to-$11 range.
This puts Castlight Health on track to raise nearly $140 million, which is an impressive 40% mark up on the funds it had originally expected to raise by going public.
VentureBeat reports that such a thunderous arrival on Wall Street would give the company a market cap of close to $1.5 billion.
“I think we are entering a time of huge opportunity here — a confluence of dramatically increased information and changing incentives in health care that will reshape this industry and create an actual market for goods and services,” says Castlight cofounder Bryan Roberts.
All told, Castlight is just one of many companies projected to have a monster year in response to the monster year that health tech is already having.
“Market conditions, social mentality, and technology have converged to create a perfect storm for digital health IPOs in 2014,” Grand Round CEO Owen Trip said, according to the same report.