There was a massive influx of capital provided to digital health companies in 2021, but there’s since been a contraction in the public market, with digital health funding decreasing, Mobi Health News reports.
Still, with the increased investments seen last year, companies’ valuations rose and many gained unicorn status, a term given to privately held companies valued at a billion dollars or more.
But were companies valued at these high prices too early, allowing for unrealistic growth expectations?
“We don’t look for operators that are focused on that price at all. It’s how much capital do I need to get to the next phase of inflection? When I need to raise more capital, and how can I do that by minimizing dilution so the team is motivated, but also setting myself up so the next round I can still actually get a flat or up round?” Emily Melton, managing partner at Threshold Ventures, said. Read more.
