Digital Health Leaders Predict More Stabilized Funding in 2023

Digital health investors are predicted to be more selective in 2023, as per a report in MobiHealthNews. Digital health leaders are expecting investors to pay close attention to companies with evidence of market fit, established business models and those who can prove both solid unit economics and their impact on patient outcomes.

Paymon Farazi, chief product officer at Signify Health said that he expects to see an increased emphasis on digital connectivity, particularly methods to help primary care providers extend their reach beyond brick-and-mortar offices. 

He also expects to see care become more accessible and proactive as patients and providers embrace many of the technologies and services driving better preventive care. And this will translate into more funding for tech-enabled healthcare in the home.

Myoung Cha, chief strategy officer and president of home-based care at Carbon Health expects earlier-stage funding to be quite active, while later-stage capital will continue to be hard to come by and expensive.

Corey McCann, president and CEO of Pear Therapeutics believes funding in the digital health space will continue to be tightly correlated to interest rates. The fundamentals for digital health are sound, but all growth equities are pressured as cash flows into fixed income.

Russell Glass, CEO of Headspace Health, doesn't see the market rebounding overnight but  does think that there will be a leveling out in the next year or so. He predicts investors will pay close attention to companies with more comprehensive, cost-effective solutions, [and] who can prove both solid unit economics and their impact on patient outcomes.

Mark Luck Olson, CEO of RecoveryOne feels employers and health plans alike will rationalize their portfolio of digital health solutions, pruning those that fail to generate sufficient engagement, or that can only be delivered as stand-alone, monolithic solutions.

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