Although last year’s digital health funding boom is over, startups with a thirst for capital still have opportunities, Digital Health Business & Technology reports. Digital health companies raised $3.2 billion in the third quarter. As compared to $4 billion in the second quarter of 2022, this represents a 20% drop quarter-over-quarter and a 60% drop year-over-year.
In the first nine months of 2022, digital health companies raised $13.8 billion in venture capital funding. Although the number is 40% lower than last year, the sector remains robust. There were 179 deals recorded this quarter, compared to 161 last quarter. Seed and Series A rounds are particularly active in investing.
The following are five key takeaways from Digital Health Business & Technology’s third quarter and nine-month study:
- In spite of last year’s record highs, funding remains resilient
- New York outpaces California in total funds
- Health information management investment remains the most prominent
- Public markets haven’t been kind to recent digital health IPOs
- Practice-focused companies dominated M&A activity in Q3