Health tech had a wild ride in 2021 as venture capital dollars flooded into the market.
Digital health funding reached a fever pitch in 2021 with startups raising an eye-popping $29.1 billion across 729 deals, according to Rock Health, a venture fund dedicated to digital health, Fierce Healthcare reports.
But the high-flying startup ecosystem has come back down to Earth as part of an overall market reset.
Health tech companies are raising far less this year than in 2021. With the third quarter included, 2022 year-to-date funding totals $12.6 billion across 458 deals, raising doubts that this year’s digital health pot will reach even half of last year’s haul, according to Rock Health.
Despite the market downturn and investor caution amid an unstable market, there are health tech companies bucking the trend and raising significant amounts of cash. According to CB Insights, 23 healthcare-focused startups crossed the $1 billion valuation threshold to become “unicorns” in 2022.
Topping the list is kidney-care company Somatus at a valuation of $2.5 billion-plus. Read more.
