Health Tech Investors are Getting Selective, Expecting Slow Growth, Consolidation

Venture firms backing health tech startups are telegraphing cautious optimism for 2024, advising startups to expect smaller and fewer checks as well as possible market consolidation but not to abandon hope just yet as investments stabilize following a sharp drop-off.

As customers — often health systems, payers, or employers — and backers plot how they’ll invest shrinking budgets, they’re increasingly savvy about metrics, investors told STAT. They’re also less interested in rapid growth, and more keen on startups that can demonstrate savings and efficiency. Read more.

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