H1 2023 funding: A new digital health era
Anyone with two ears and a heart knows that this is the summer of “eras”—and digital health has officially come into a fresh one of its own, hallmarked by fewer deals, lower average check sizes, and a smaller investor cohort. This half has firmly solidified the new funding cycle we foresaw at the beginning of the year—Q2 2023’s total digital health funding came in at $2.5B, the third of the last four quarters to clock under $3B raised.
Digging deeper into the data, an unprecedented 41% of all raises this half were "unlabeled" rounds (a capital raise without an associated round label, e.g. Series A), as startups try to avoid valuation crunches while extending cash runway. On the flip side, despite the overall low-funding environment, there was a surprising influx of mega deals, to the tune of 12 this half—with check sizes on par with previous years. For startups unable to juice up with a mega raise or tread water with unlabeled funding, options include accepting acquisition bids or closing doors, although that doesn’t have to be the end of the story. All things considered, digital health’s course-correction is proving challenging but necessary to right-size the sector toward a sustainable future. Read the full recap for more on how entrepreneurs, investors, and innovators are adjusting to this brave new (lower funding) world.
Some Hospitals That Spent Big On Nurses During Pandemic Are Now Short On Cash
Measures taken include closing unprofitable services, selling assets, or refinancing debt The Wall Street Journal
Why Culturally Competent Care For Women Of Color Matters
How tech can help bridge the access gap to diverse providers Commonwealth Fund
The Opportunity For Chief AI Advisers At Health Systems
The new roles can focus on governance, adoption, and training Becker’s Hospital Review
Telehealth Visits Garner Fewer Follow-Ups Than In-Person Appointments
Mental health had greatest difference in follow-up rates Healthcare Dive
Digital Health For All Will Need Careful Investment
As the sector matures, integration, optimization, and equity are essential Fierce Healthcare
No $2M+ U.S. digital health fundraises were recorded last week.