Donate to Science & Enterprise

S&E on Mastodon

S&E on LinkedIn

Please share Science & Enterprise

Infographic – Digital Health Venture Funds Crater in Q4 2022

 

Chart: Digital health venture funding by quarter

Click on image for full-size view (CB Insights)

21 Jan. 2023. Venture funds for new companies developing digital solutions for health care continued dropping throughout 2022, reaching their lowest levels in years in the fourth quarter. Technology industry research company CB Insights reported the findings last week as part of its 2022 State of Venture report (registration required).

CB Insights defines digital health companies as those providing IT services to health care enterprises, as well as digital therapeutics, telehealth, and technology applied to mental health and clinical trials. For all of 2022, digital health start-ups worldwide raised $25.9 billion in 2,122 deals, the lowest investment dollar total since 2019 and the fewest number of annual deals since 2018. In 2021 venture investors placed $59.7 billion in the sector, in 3,160 transactions. CB Insights says for all of the technologies it follows, digital health was the only sector to record fewer investment dollars and deals in 2022 than 2020.

Quarterly investment dollars and deals in digital health start-ups during 2022 began falling in the first half of the year, with the declines continuing in the last two quarters. In the fourth quarter, according to CB Insights, new digital health companies raised $3.4 billion in 366 deals, the lowest quarterly totals since 2018. The vast majority of Q4 venture investment dollars and deals in digital health were in U.S. companies — $2.5 billion in 201 deals.

Some 60 percent of digital health venture deals in 2022 went to early-stage companies, about the same percentage since 2020. And for perhaps the only bright spot in the report, the median-size deal has grown steadily since 2018, rising to $4.5 million in 2022 from $4.4 million the previous year. The average deal size, however, declined in 2022 to $15.2 million from $24.4 million in 2021.

More from Science & Enterprise:

We designed Science & Enterprise for busy readers including investors, researchers, entrepreneurs, and students. Except for a narrow cookies and privacy strip for first-time visitors, we have no pop-ups blocking the entire page, nor distracting animated GIF graphics. If you want to subscribe for daily email alerts, you can do that here, or find the link in the upper left-hand corner of the desktop page. The site is free, with no paywall. But, of course, donations are gratefully accepted.

*     *     *

 

Comments are closed.