2023 year-end funding: $10.7B raised across 492 deals
We expected 2023 to be a year of less capital for digital health startups, and it was—with $10.7B raised across 492 deals, 2023 was the lowest year of U.S. digital health investment since 2019. Yet, common measures that accompany a cooling funding market, such as downrounds, shutdowns, and acquisitions, didn’t spike. How come?
Ultimately, last year was defined by startups leveraging creative measures to avoid those difficult steps. Companies used extension and insider rounds as interim measures to shore up cash. And unlabeled rounds (i.e., not labeled with a letter, such as “Series B”)—which delay the pressure to meet expectations associated with the next labeled raise—made up a whopping 44% of 2023’s deal count, a new annual record.
But transition measures can’t buoy startups forever. While the economic climate of 2024 remains uncertain, some delayed activities like acquisitions, public exits, and sales are likely on the docket. Read our year-end 2023 funding recap to understand what 2023’s funding patterns mean for 2024.
Cigna Nears Deal To Offload Medicare Business
Health insurer in exclusive talks to sell MA business to HCSC for $3-4B The Wall Street Journal
Lilly Launches Website, Home Delivery Option For Weight-Loss Drug
LillyDirect will connect consumers to telehealth providers for obesity, diabetes, and migraine care Reuters
Novo Nordisk To Open New AI Hub In UK For Drug Discovery
London location will attract talent across AI, data science, and engineering PharmaTimes
ChatGPT Incorrectly Diagnosed More Than 8 In 10 Pediatric Case Studies
Generative AI needs more tuning to address pediatric health nuances The Hill
Medical Devices Could Be Hacked Next, Officials Fear
Even with new FDA measures, device vulnerabilities raise concerns Axios
- Nalu Medical nabs $65M for its neurostimulation device to manage and treat chronic pain
- Telemedicine-based substance use disorder care provider PursueCare collects $20M
- Tava Health picks up $16M for its employer-focused digital mental health offering
- Arbital Health closes on $10M to develop a VBC adjudication tool
- Provider-focused automated record retrieval solution Credo Health inks $5.25M