Healthcare navigation (HN) saw the largest-ever investment quarter this year in Q1’22 with $830M invested. Although 2022 dollars and deal counts are down from 2021, average deal size is up 38%, from $32M in 2021 to $47M in 2022. A handful of large 2022 HN deals drive the average up: HealthCare.com ($212M), Transcarent ($200M) and Alma ($130M).
HN companies focused on price transparency saw the first-ever deal over $100M this year for Walnut ($110M).
Models such as buy now, pay later are disrupting the traditional method of payment and are offering more consumer flexibility and accessibility to expensive healthcare.
As healthcare costs continue to increase, we expect more investment into price transparency companies.
Notes: 1) EU includes UK-based companies. Source: PitchBook, SVB proprietary data and SVB analysis.
2020
2021
20222
Applications
Dollars
Deals
Provider Matching
$591M
21
$1.2B
35
$433M
10
Payer Matching
$202M
9
$803M
26
$526M
Price Transparency
$13M
2
$99M
5
$210M
Several companies have established themselves as front-runners in HN, raising capital consistently year after year.
Seven of the eight companies who raised at least $50M in 2022 also raised capital in 2021, establishing continued success and growth after 2021’s record year. Meanwhile, early-stage entrants into the HN market have received less investment this year than any other year, with just two deals. Many HN companies have evolved to offer additional services, such as telehealth and insurance plans. We expect this to continue as consumers demand HN features in every healthcare experience.
Notes: 1) EU includes UK-based companies. 2) All 2022 data is through 9/30/22. Source: PitchBook, SVB proprietary data and SVB analysis.