Health care funding drops 33% in first half of the year
Health care funding was down 33% in 1H23 compared with the same time last year, according to a report from Digital Health New York.
Why it matters: Investment in Q2 of this year was on track with the fourth quarter of 2022 — indicating a sliver of hope for the second half of 2023.
By the numbers: Q1 saw $1 billion of funding across 29 deals, while Q2 saw $600 million of funding across 34 deals.
- In the first quarter, 62% of the funding was across early-stage deals (pre-seed, seed and Series A), with 38% across late-stage deals.
- In Q2, there was a more even split, with early-stage deals accounting for 54% of the funding and late-stage deals accounting for 46%.
- Provider enablement took 23% of funding in Q1 and 24% in Q2.
- Women's health brought in 13% of funding in Q1 and 18% in Q2.
What they're saying: "The market is tough and unpredictable. Glitzy 40-slide decks won’t cut it, with practically everyone stretched to capacity," said Lindsay Jurist-Rosner, CEO of caregiving startup Wellthy.
- "Instead, two key factors feel more important than ever in 2023: a clear, concise narrative about impact — think head-turning ROI — and exceptional and authentic relationship-building," Jurist-Rosner says.
- "Capital preservation amidst a continued focus on scale will separate the top-tier companies from the rest," says Matt Griffiths, the East Coast director health tech and medical devices at HSBC.
- "Those without runway through 2023 will be at risk for acquisition or down rounds, especially if fundamentals aren’t strong," he continues.