2021 was a mega year for digital health funding. With the COVID-19 pandemic driving huge demand for virtual and convenient services, digital health companies raised $29 billion, Becker’s reports.
This year funding has begun to slow, with $10 billion raised in the first half, and average investments dropping by 25%. Before cutting a check, investors are scrutinizing digital health firms’ financial and business fundamentals, ability to provide value, time to market, and ability to scale. Plus, it’s getting increasingly hard to differentiate in the fragmented market.
Innovative digital health companies can use this opportunity to sharpen their products’ market fit and scale sustainably across the ecosystem.
With members receiving healthcare across many stakeholders, scaling in health care is complicated. Challenges include complex regulations, misaligned stakeholders incentives, multiple decision-makers, unclear accountability for overall member health, and data and interoperability challenges. Read more.
