Health Tech Investment Drops as Market ‘Rebalances’: Report

A report by Silicon Valley Bank stated that health tech companies in the US and the European Union have raised about $23 billion so far this year. 

Titled ‘Future of Healthtech 2022’, the report found that health tech investments were ‘down but rebalanced’. Noting that after a very busy 2021, investments are fewer and more focused on early-stage companies where valuations are lower in 2022.

The report noted that funding rounds worth $100 million or more, fell 40% compared with 2021, while 2022 so far has seen a 47% decrease in new unicorns, startups valued at over $1 billion. 

While IPOs have come down to zero, mergers and acquisitions have sustained 48 deals in Q1, but only 30 in Q3. 

Mental health is bucking the trend with valuations and deal size increased when the general trend is downwards. Interest in platform tools addressing multiple mental health conditions is up, with platform companies earning 69% of investments so far in 2022, compared to 51% in 2021. 

Women's health startups have raised $877 million so far in 2022. Investments are 30% higher than the full-year investment in 2020. Fertility and pregnancy care made up 68% of the investments.

Overall, the report noted that the healthcare industry is more resilient during periods of downturn and remains ripe for innovation.

The full report can be accessed here.