Derren Burrell’s Post

As overall market activity surged during the COVID-19 pandemic, investments into health technology (health-tech) grew significantly, according to Deloitte’s analysis of Pitchbook deal data over the past 18 months. However, investment volume has trended downward as investors weathered inflation, elevated interest rates, and more significant uncertainty. Learn more on the shifts in investment in Deloitte’s analysis. https://lnkd.in/evJTz8x5

Venture Capital in Key Markets Deployed by Quarter (2022 – Q1 2024) by Galen Growth | Insights You Can Trust. Q1 2024 marks a stagnation of the Digital Health funding decline witnessed in 2023. The first quarter recorded $5.1 billion across 347 deals. The previous year was a great reset in Digital Health, marked by consolidation, a notable shift in investment dynamics, and increased adoption of new technologies such as Generative AI. The United States continues to drive Digital Health funding in Q1 2024, with North America closing at $3.8 billion, matching the previous year’s first quarter. Additionally, Digital Health funding in Europe reaches $853 million in Q1 2024, surpassing the same period in the previous year by 22%. Overall, Q1 2024 sets a cautiously positive stage for how the Digital Health landscape could fare in the remainder of the year. #Digitalhealth

Healthcare growth investing is still going strong despite a slowdown at the end of 2023. It may be a different funding environment than we've seen in the past few years, but as we kick off the second half of 2024, investors are still committed to supporting new digital health and health tech solutions. Depending on the area within these industries, there are several views held by VCs, private equity, and health system consortiums on what matters most in the companies that are being funded today. However, there are 3 key things investors agree that they look for in early-stage companies in the current environment: ROI, Scale, and Integration.

In an exclusive series by MobiHealthNews, we explore the evolving digital health investment landscape from various stakeholders’ perspectives. In the first installment of this eight-part series, Daisy Wolf, investing partner at Andreessen Horowitz (a16z Bio + Health), shares her expert perspective, highlighting the sector's potential and offering strategic advice for founders. Click the link below to check out part one of the investment series and stay tuned for part two coming out on Thursday! #DigitalHealth #HealthcareInnovation #AIinHealthcare #HealthTech #InvestmentStrategy #digitalhealthinvestment #MobiHealthNews #AndreessenHorowitz HIMSS HIMSS Media

This year has seen a slight decline in digital health funding, but investors are still optimistic about the landscape. In 2024, investors poured millions into startups selling AI-powered healthcare tools, and this is likely to remain true for years to come.

Pitch Book: In 2023, VC funding in digital health totaled $6.0 billion, and through the first two quarters of 2024, it reached $3.1 billion, roughly flat compared with last year. It now appears that the trough of funding in digital health occurred in mid-2023, and VC activity has been holding steady since then. It remains unlikely that deal activity will return to the highs seen in 2021, which saw over $22 billion of aggregate VC funding, though the sector continues to benefit from longer-term drivers such as the increasing consumerization and digitization of healthcare.While VC funding stayed in a consistent range over the past year, exits have drastically declined since the peak of the COVID-19 pandemic period, and the lack of capital being recycled to investors has been holding back additional investment.

#Digitalhealth is not dead. Yet. Long live digital health! After the encouraging Rock Health Capital report on 1H 2024 investment, more positive signals from investors in this article. TL; DR: After pulling back from overcorrecting for earlier COVID era excesses, "most compelling investment environment we’ve seen in over a decade” says David Kereiakes, Windham Venture Partners Capital is available for high quality assets (with premium multiples), and much less so for B+ assets - Ian Wijaya, Lazard We're in an "anoint the winners" phase of the market, with investors flocking towards those firms with strong unit economics and sustainable customer acquisition and revenue generation. Best categories? Reducing administrative burden, reduce health system costs/redundancies. prevent revenue leakage (especially driven by AI) are all thriving. Which suggests (to me) that firms focused on actual clinical breakthroughs may continue to have a difficult time raising capital on attractive terms. What does your crystal ball say about 2H 2024? Drop a comment below :) https://lnkd.in/gmcaHbDe

Black Book Highlights What’s Hot and What’s Not for 2025, VC and PE Healthcare IT Investments Survey Research #venturecapital #privateequity #healthcareit https://lnkd.in/e44hZPUc

Lombard Odier, the Swiss private bank, has announced the closure of its health tech fund, marking a significant shift in its investment strategy. Citing market volatility and uncertainty in the health tech sector, the bank decided to refocus on more stable investment opportunities. The article explores the broader implications of this move, including how it reflects the fluctuating confidence in the health tech market and what this means for future innovations in the field. What would you add? Found this useful? Repost ♻️ to help your network. Join our community of 100,000+ HealthTech leaders, finding the latest ideas, people, innovations and technologies that are shaping the future of healthcare. 👉 https://thefuturehealth.co

📊 Survey Insights: Private Equity Trends in Healthcare & Health IT 📊 In Fall 2024, Healthcare Growth Partners (HGP) and Eliciting Insights collaborated on a detailed survey of private equity investment professionals, focusing on their involvement in Healthcare and Health IT. With interest rates shifting, economic fluctuations in play, and a U.S. presidential election on the horizon, the timing of this survey captures insights into the market's “new normal.” Our respondents—ranging from venture capital to growth equity and buyout investors—shared their perspectives on valuations, fundraising, and market dynamics, especially within Health IT. Here’s a quick summary of the emerging themes: 🔹 Valuations & Activity: Valuations are down across new investments and exits, but activity has ramped up, particularly for buyout and growth equity funds. Venture capital, however, faces steeper declines in activity. 🔹 Profitability vs. Growth: Buyout and growth equity investors see profitability as a disciplined focus, whereas venture capitalists feel the pendulum may have swung too far from growth. 🔹 Health IT Investing: There’s a divide here—VCs are less optimistic, while growth equity and buyout investors see increased activity, with buyouts reporting higher valuations in Health IT compared to the broader market. 🔹 AI & Technology: AI remains a focal point across all fund types but is mainly viewed as a tool to enhance operations rather than a primary investment driver. 🔹 Market Conditions: Private markets show resilience; despite IPO slowdowns and rising interest rates, alternative exit strategies keep options open. 🔹 Election Sentiment: Most respondents believe a Trump presidency would positively impact private equity and healthcare investing more than a Harris presidency. Curious to dive deeper? Full report here 👇 https://lnkd.in/d-hPgBK6