‘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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Cindy Crawford-Backed, Whole-Body MRI Startup Continues Expansion, Despite Radiologist Concern

“There is certainly not enough known about the use of [artificial intelligence] in direct-to-consumer imaging services,” said Catherine Livingston, an associate professor of family medicine at Oregon Health Sciences University School of Medicine. “We don’t even know that the benefits outweigh harms for whole body scans in asymptomatic people. ... AI is a Pandora’s box.”