The Digital Revolution of Healthcare
Previously: The State of Healthtech
In a world where technology continuously intertwines with our daily lives, healthcare is no exception.
With every heartbeat monitored, calorie tracked, and medical consultation just a click away, we're witnessing a profound transformation in the way we perceive and manage our health. The Global digital health market is projected to reach a valuation of $660 billion by 2025, growing at a CAGR of 25%.
Show me the Money
Recent analysis by CB Insights shows that in Q2 '23, care delivery and navigation tech dominated the healthtech VC scene, securing a staggering US $1.5 billion in 3 months; this makes it the sole digital health segment to breach the billion-dollar threshold in a single quarter. Care delivery and navigation tech makes up roughly 45% of the entire digital healthcare business, and roughly 49% of all digital healthcare companies fall under this category – providing better therapy, patient remote assistance or patient treatment. Hot on the heels of patient care, was startups in the monitoring, imaging, and diagnostics tech, which garnered $700 million in fundraising in Q2 2023. The drug research & development sector wasn't far behind, raising $400 million in the same quarter.
CB Insights also unveiled the most promising healthtech startups in its 2022 edition of the Digital Health 150, which collectively raised an astonishing $5.6 billion in equity funding in 2022. Several newcomers reimagined clinical care, amplified healthcare access for marginalized communities, and innovatively used AR/VR for surgical training. 90% of these startups were fresh on the list, having not been featured in 2021. This seismic shift mirrors the industry's evolution, as healthtech witnessed an unparalleled flurry of M&A and IPO activities in 2021, registering record-setting exits.
Although the US still holds the mantle in healthtech innovation, this growth isn't limited to one geography. In fact, the 2022 list of promising startups spanned 18 countries, with companies from the UK, Canada, and Brazil standing out.
Not just for Healthcare Startups
Digital health is such a burgeoning industry, that it has caught the attention of all the big boys too. Here's a timeline of MAAMA (Meta Platforms (formerly Facebook), Amazon, Apple, Microsoft, and Alphabet (formerly Google)).
To read more about the transformative innovation of digital health in 2023 – read the full report here.
Next Read: The Meteoric Rise of Healthtech Unicorns