In just the past nine months, the healthtech industry has seen dramatic shifts. Venture capital investment and deal pace are slowing from their peak in 2021, with valuations lowering and check sizes decreasing.
Rising interest rates, inflation and global geopolitical factors all created record market volatility. Public healthtech companies saw their shares drop at record paces.
These shifts all indicate a healthtech market reset is underway. We've moved from a growth-at-all-costs era to an era that emphasizes clear value creation, whether it's through improving health outcomes, access, or affordability.
Investment has shifted into earlier stages where valuations are corrected from last year's sky-high levels. With a record amount of dry powder available to healthtech startups, and mergers and acquisitions on the rise, there is still a tremendous opportunity for healthtech companies to grow.
The healthcare industry, presenting new and emerging challenges in 2022, remains ripe for innovation and is more resilient during periods of downturn.
Looking forward, healthtech companies will need to focus on delivering measurable value to continue driving innovation.
I think this is one of the best times to be starting a company and one of the best times to be building responsibly."
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