Return on investment and clinical validation will be the most significant indicators for success for digital health companies in 2023, according to a survey by investment firm GSR Ventures.
The survey, which included responses from more than 50 investors, found that more than 94% deemed ROI to be “important” or “very important” to a digital health company’s success, and 79% said clinical evidence and trials were top indicators, Mobi Health News reports.
Investors anticipate digital health funding in 2023 will be between $15 billion and $25 billion. They also expect valuations will decrease by around 20% for seed stage funding. Series A and Series B+ valuations could dip between 20% and 40%.
The prevalence of provider shortages and burnout will provide the most opportunity for startups, according to 48.1% of those surveyed. Nearly 27% said changing reimbursement models was the biggest challenge, followed by 11.5% who cited interoperability.
More than half of investors said oncology was the brightest clinical area for startups, followed by mental health at 37.3%, neurology at 27.5% and primary care at 23.5%. Read more.
