Are health tech opportunities being squandered?

Are health tech opportunities being squandered?

A current investor ranking reveals a 5x decrease in funding for wellbeing technologies. The industry seems to be encountering some sizeable difficulties next a huge pandemic-pushed boom in digital health and fitness investing that we observed in 2021. 

Important points:

  • Well being tech funding totalled $2.2 billion in the 3rd quarter of 2022, a extraordinary lessen from $11 billion in the next quarter of 2022. 
  • According to the Health Tech 50 review, the trader distribution by offer stage kind in the electronic wellness sector has remained reasonably altered. 
  • In 2022, the major expense exercise was noticed in electronic health firms focusing on intricate diseases these kinds of as most cancers and psychological health issues.

The volume of funds elevated for health know-how in the 3rd quarter of 2022 was $2.2 billion, which was much a lot less than the $11 billion lifted in the second quarter and the least total because 2019. There is no question that the funding landscape for health technologies will be quite unique in 2022 than it was in 2018.

But why?

According to a recent Health Tech 50 report posted by Kilo Health and Galen Growth, the sharp loss in offer worth was accompanied by a decline in the full number of one of a kind trader transactions, which fell by 35 for each cent in Q2 2022 as as opposed to 2021.

It is critical to note that the slowdown wasn’t unique to the electronic well being market. In accordance to Crunchbase, worldwide enterprise capital attained $160 billion in Q1 2022, a 13 for every cent reduce from the amount lifted in Q4 2021.

The excellent information is that, even though the tempo of investments has dropped, VC funding for health care firms is nonetheless ahead of where it was again in 2020. And when it is legitimate that amplified interest in electronic wellness has cooled off, health tech startups continue to be a emphasis for traders – even irrespective of the fact that the dynamics of the current market have shifted.

Investors that are standing guiding the very best specials in health and fitness tech 

In 2022, a few mega-rounds dominated full funding for the sector, which includes kidney care platform Somatus’ $325 million collection E. Freenome (an early cancer detection business) elevated $290 million in a collection E financing. 

Despite the point that the health and fitness tech sector has been declining this year, the expense landscape continues to be healthier and complete of option. Some traders are earning major splashes in this interesting sector, in accordance to the Health Tech 50 rating.

The rankings have been established utilizing a quantity of actions, such as direct parameters (this sort of as the amount of portfolio firms and exits in the final 18 months) and oblique indicators (manufacturer recognition score, general public rating, and extra).

In this article are the prime most notable money on the list Khosla Ventures (Early Stage), General Catalyst (Progress), Google Ventures (Corporate) or MTIP (Public’s Favorite).

Australian HealthTech sector and expense

Above 16 healthcare companies are outlined in Australia, with a market value of additional than $1 billion. CSL, Cochlear, Sonic Health care, Fisher & Paykel, Ramsay Wellbeing, and ResMed are amongst the companies worthy of $10 billion or much more. 

In addition, the adhering to five Australian healthtech organizations are thought of to be valued at far more than $100 million: HealthEngine, HotDoc, Eucalyptus,, and Seer Health-related. In accordance to Ben Armstrong, founder of Archangel Ventures, one particular of the most challenging areas to do well in is healthtech.

This is owing to purchaser behaviour, the enterprise atmosphere, and the legislative method created to defend buyers from physical damage. See the full ranking and obtain the report right here: 

About Overall health Tech 50 

Hosted by Kilo Overall health in partnership with Galen Progress, Wellbeing Tech 50 is a platform that was created to acknowledge ahead-on the lookout VCs allocating funds to velocity up the transition outside of common healthcare.

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