The Meteoric Rise of Healthtech Unicorns

Not too long ago, Healthtech was considered a niche segment in our digital age. 

It was a sector that the tech giants hummed and hawed over, while simultaneously salivating at the potential. The industry was slowly plodding through its own digital transformation, as it was rife with challenges. 

First, there was the issue of deeply entrenched healthcare information systems, which were largely closed looped and far from agile. Issues around critical patient data and data security put an array of speed bumps in front of innovators looking to disrupt and streamline the industry. Then there was the separate issue of too many stakeholders and sign-offs being required, from the private healthcare institutions to the insurance companies to government and regulatory bodies- and all the parties in between. It was a tangled mess to say the least. 

Today, it’s a different story – as many companies have found Healthtech niches that need digitization, without as many roadblocks. The healthtech industry is birthing unicorns at a pace that's leaving even seasoned market watchers astonished. Fueled by an insatiable global demand for health solutions and turbocharged by the pandemic’s revelation of virtual care's sheer potential, these pioneers are not just reshaping the medical landscape— they are defining its future. From the bustling tech hubs of the US to the innovation-laden corners of Europe and Asia, healthtech unicorns are paving the way for change in the global medical community. 

Also Read: 10 Data Points That Explain The State of Healthtech in the MENA

HealthTech’s Global Contingent

As the COVID-19 storm swept across the globe, the world of healthtech began to flourish in unexpected ways. With face-to-face interactions becoming a luxury of the past, people everywhere sought new, safer ways to connect with healthcare. Amidst this shift, healthtech startups and digital healthcare platforms emerged as champions, capturing the lion’s share of VC investments for a number of quarters.

According to HolonIQ, there are 140 healthtech unicorns around the world who were collectively valued at over US $320 billion in February 2023. When adding medtech and biotech, that number increases to 200 health unicorns born in the last 10 years. 53 have exited, the vast majority (47) through IPO or SPAC, leaving 147 based on last valuations.

Moreover, 84% of the 147 healthtech unicorns worldwide reached this status post-pandemic, with Asimov and Capital Rx having joined the club in Q1 of this year. By mapping HolonIQ’s data on Health Tech Unicorns to the Global Healthcare Landscape taxonomy, healthtech represents nearly 10% of the list, ranking 5th in most unicorns by sector topping media (7%), and insurance (2%), which is no surprise given the explosion in ‘virtual first’ care during the pandemic.

Infobyte: Health Unicorns Trends

 

To read more about the transformative innovation of digital health in 2023 – read the full report here. 

Next Read: Meet the Top 5 Global Healthtech Unicorns