Funding
Health.Market March 10, 2021
Crypto or biotech – Both are high risk and high reward investments. Bob Teague, MD layouts out the pros and cons for investors battered by market uncertainty.
Bob Teague
March 10, 2022
Crypto or biotech – Both are high risk and high reward investments. Bob Teague, MD layouts out the pros and cons for investors battered by market uncertainty.
DexCare, the digital care operating system that was spun out of Providence Health last March, has raised $50 million in series B funding for its platform that manages health system capacity and demand.
Providence Health’s Digital Innovation Group initially developed the DexCare platform in 2016 to support patient acquisition and navigation. Now, the artificial intelligence-driven platform provides those services to multiple health systems.
Transformation Capital led the series B round, with participation from Kaiser Permanente, Providence Ventures, Mass General Brigham, Define Ventures, Frist Cressey Ventures and SpringRock Ventures.
A closer look at the funding vehicles driving the VC-backed health tech and biotech markets and the pitfalls for the average investor entering 2022
If you’ve been following our updates, you know 2021 was a (the!) year for digital health venture funding: In July, we reported that the year had already topped all of digital health’s previous annual funding records with six months left to go. While it may feel like old news to share just how momentous 2021 was, our updated funding graphs—with extended axes just to capture 2021’s growth—speak for themselves.
However, beneath the chart-topping numbers are signals of something deeper. 2021’s funding frenzy was, at points, both the cause and effect of bigger shifts within healthcare. Specifically, the sector experienced major changes to its infrastructure, business models, and talent pool that will make downstream effects in 2022 inevitable.
In this piece, we’ll review 2021’s funding environment with a focus on the underlying changes beneath the surface’s venture stats. We’ll place our bets on how the digital health landscape will move throughout 2022—and where there might be tremors ahead.
A look back on the year that was for the healthcare industry and peek ahead for the digital health market in 2022 as we enter year three of Covid-19.
Funding announcements in health innovation have been coming in hot and fast these days. It’s easy to lose perspective about where we’ve come from and where we’re going. This 2021 midyear StartUp Health Insights Report (something we’ve been doing for a decade) is an essential opportunity to step back, take a beat, and view the market with a longer lens. What’s the 10,000-foot view? We also take this opportunity to look at funding trends from a health moonshot perspective. Are we investing in the tools and services that will increase access to care, cure disease, lower cost, and achieve the other global goals that can improve the lives of billions of people? Let’s look at the numbers.
H1 2021 secured $14.7B in digital health funding, already surpassing all of 2020’s funding. The half closed with 372 deals and an average deal size of $39.6M, spearheaded by 48 mega deals which accounted for 59% of total H1 2021 funding. Public exit activity ballooned with 11 closed IPOs and SPACs, with another 11 SPACs expected to close in 2021. The digital health investment climate in one word: Up.
Funding, up.
Deals, up.
Deal sizes, up.
Acquisitions, up.
Public exits, up.
It’s been quite a ride this past year watching digital health catapult from a niche sector to a mainstream market. Seismic shifts from the COVID-19 pandemic launched digital health into high gear, and the momentum has only accelerated. The first half of 2021 closed with $14.7B invested across 372 US digital health deals with a $39.6M average deal size. Fifty-nine percent of that funding came from 48 mega deals ($100M+), including one of the largest single rounds of investment in digital health history: Noom’s $540M Series F round.
2021 opened with a whirlwind of SPAC-triggered public exit activity in digital health. In this post, we share insights and analysis on how digital health’s SPAC boom will impact four different stakeholder groups, as well as implications for the entire ecosystem. Q1 2021 is barely wrapped, and public exit announcements in digital health have already far exceeded last year’s total. The vast majority (>80%) of this activity is SPAC-related and (agnostic to digital health’s corner of the private and public markets) the SEC is taking note. SPAC talk has infiltrated digital health airwaves, news feeds, and collective conversation. Opinions abound, but we’re not satisfied with mere speculation—we wanted to understand what the data had to say. Below, we share our analysis and observations on SPACs in digital health, and explore what they mean for sponsors, entrepreneurs, investors, enterprise healthcare companies, and the digital health ecosystem at large.
Not all good ideas become good businesses. There are many healthcare-specific factors at play. Green Room Technologies leverages extensive experience in health technology, business, data and interoperability to help our clients assess and achieve business viability.
Data strategy is a cornerstone of business viability in health technology. How you solidify and communicate a comprehensive data strategy can help you realize growth, generate revenue, and create investor interest.
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