A new PitchBook report predicts that the digital health sector should expect — and even needs — greater consolidation to succeed. And behavioral health will see a significant role in that movement as it continues to drive the continued use of digital health in the U.S., reports Behavioral Health Business.
However, behavioral health providers will need to consider doing much more in the future than the one-off point solutions that have proliferated over the last several years. The year 2022 saw the venture capital funding flood recede significantly. Venture capital funds invested about $7 billion in digital health companies last year, 55% lower than 2021’s $15.6 billion, the report states. Despite the pullback on investment dollars and the perceived need for consolidation, “exit activity was almost nonexistent” in 2022. Read more.
