‘Hope is Not a Strategy’: Health Startups Short on Cash Staring Down Consolidation, Investors Say

Funding for healthcare startups is a much scarcer commodity than it was during the pandemic, a fact that — along with a recent increase in mega-deals — could signal rampant consolidation on the horizon, investors said.

Mega-deals, or rounds worth $100 million or more, made up more than a third of all funding in the first half of the year, according to Rock Health. In addition, a number of big-ticket mergers and acquisitions, including CVS-Oak StreetOptum-Amedisys and HealthComp-Virgin Pulse suggest an appetite for strategic tie-ups.

Acquirers could take advantage of the tighter market to snap up companies they think will improve their value proposition, according to investors. Read more.

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