Infographic – Digital Health Venture Funds Remain Stuck

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

29 July 2023. Global venture funding for digital health start-ups remains mired at low levels, as the number of investment deals in the second quarter of 2023 dropped to its lowest level in eight years. Technology intelligence company CB Insights reported the data earlier this week (subscription required).

CB Insights says digital health entrepreneurs worldwide raised $3.4 billion from venture investors in April through June, roughly the same total dollars raised as in the previous two quarters. Compared to venture investments across all industries that dropped 13 percent in the second quarter — or an 18 percent drop, as Science & Enterprise cited from Crunchbase’s report — a leveling-off of investment dollars is not bad. But the number of venture deals fell by 25 percent from Q1 to 348, the lowest quarterly deal total since Spring of 2015, according to CB Insights.

In the U.S., venture dollars for digital health start-ups in Q2 2023 totaled $2.2 billion in 174 deals, declines of eight percent and 25 percent respectively from the first quarter. Nonetheless, the U.S. companies account for about two-thirds (65%) of all investment dollars in this sector and half of the deals. Care delivery and navigation technology start-ups, such as primary care support and telehealth, raised $1.5 billion, 44 percent of the Q2 total, in 152 deals. Companies developing technologies for monitoring, imaging, and diagnostics collected $700 million in 77 Q2 deals.

More from Science & Enterprise:

• Venture Fund to Back Life Science A.I. Start-Ups
• Brain-Computer Device Company Gains $33M in Early Funds
• New Funds to Invest in Digital Health Start-Ups

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