Carlsmed Inc., a medical technology company that specializes in AI-powered personalized spine surgery headquartered in California, has filed for an initial public offering (IPO) in the US.

The company seeks to raise up to US$107.2 million by offering 6.7 million shares priced between US$14 and US$16 each, according to a filing with the US Securities and Exchange Commission on July 16, 2025.

If priced at the upper end, Carlsmed’s market valuation could reach around US$424.3 million based on its outstanding shares.

The Carlsbad, California-based firm reported a net loss of US$5.7 million on revenue of US$10.2 million for the first quarter of 2025. This compares to a net loss of US$5.4 million on revenue of US$5.1 million during the same period last year.

The IPO is being managed by Bank of America, Goldman Sachs, and Piper Sandler.

Carlsmed plans to list its shares on the Nasdaq Global Select Market under the ticker symbol CARL.

B Capital Group and US Venture Partners are among the largest shareholders, holding stakes of 35.1% and 28.3%, respectively, prior to the offering.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ AI-powered personalized medicine commands premium valuations in healthcare IPOs

Carlsmed’s IPO represents a growing trend of AI-powered personalized medicine companies successfully accessing public markets despite the broader healthcare IPO slowdown.

The company’s potential $424.3 million valuation reflects investor confidence in AI-driven medical technology, particularly in specialized fields like spine surgery.

This confidence is backed by broader market data showing AI-enabled healthcare startups captured 62% of total venture capital funding in digital health during H1 2025, with average deal sizes of $34.4 million—significantly higher than their non-AI counterparts 1.

While healthcare IPOs are down 40% in 2025 compared to 2024, companies combining AI with clear clinical applications are still finding receptive investors, as seen in the U.S. IPO market’s 55% increase in deals in Q1 2025 2.

Carlsmed’s ability to double its revenue year-over-year (from $5.1M to $10.2M) demonstrates the market demand for AI-powered personalization in spine surgery, even as the company continues to operate at a loss.

2️⃣ The spine surgery market is rapidly shifting toward personalized implants and robotics