A healthtech investment 'rebalancing'
A report from Silicon Valley Bank suggests a global healthtech investment “rebalancing” from a 2021 peak
A report from Silicon Valley Bank (aka SVB) suggests that significant adjustments over the last nine months are signaling a healthtech market “rebalancing” (with investments and valuations falling from a peak in 2021).
Here are some key points:
In the first three quarters of 2022, US, EU, and UK healthtech investments totaled $23 billion, with a particularly high dip in Q3 2022 (including a 40% decline in mega-deal investments). Investing has moved to earlier phases, when values were less overblown.
Following a record 19 IPOs in 2021, market circumstances and poor returns basically brought an end to healthtech IPOs in 2022. With the bulk of healthtech stock trading in the red, with a median return of -58%, healthtech firms are anticipated to postpone IPO aspirations and remain private, while pursuing M&A opportunities.
With $7.0 billion, provider operations top 2022 investments, followed by clinical trial enablement at $6.8 billion and alternative care at $5.6 billion.
As virtual care is “widely available” in 2022, investment is going to firms that provide “quality outcomes”.
Those are interesting observations which could give us some insights towards 2023.