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BFD Expert Voices - Health Tech Deals

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A bar chart that illustrates health tech venture capital funding from 2019 to 2024. Total capital invested peaked at $29.7 billion in 2021, followed by a decline to $11.3 billion in 2024. Deal count decreased from 1,639 in 2021 to 737 in 2024, indicating a significant market contraction.

Health tech VC funding

The end of 2024 signaled that the declining VC deal volume in health tech may finally be reversing, a new report from PitchBook finds. 

Why it matters: The much hoped-for funding turnaround is finally being borne out in the data.

By the numbers: Q4 saw 179 deals closed — the highest number since Q1 2024. That's down 6.6% compared with Q3.

On a full-year basis, activity remained relatively stable compared with 2023. There were 737 deals closed, at a deal value of $11.3 billion — compared with 915 deals worth $11.5 billion in 2023.

There were 24 funding rounds at $100 million-plus raised by VC-backed startups in 2024, up from 18 in 2023.

Between the lines: VC-backed exit prospects are looking better.

In 2024, there was $5 billion of recorded VC exit activity in health tech, compared with the $3.4 billion and $2.5 billion exit value in 2022 and 2023, respectively.

Yes, but: It's far less than the $29.8 billion exit value from the IPO heyday of 2021.

Truepill's $525 million deal to LetsGetChecked reflects the valuation reset that's happened over the last few years, given TruePill was worth $1.6 billion in 2021.

The bottom line: "The steady investment levels throughout 2024 indicates that the sector may have moved past the toughest funding period following a difficult post-pandemic adjustment," writes PitchBook analyst Aaron DeGagne.

Health tech VC funding turning around

The much hoped-for funding turnaround is finally being borne out in the data.

The end of 2024 signaled that the declining VC deal volume in health tech may finally be reversing, a new report <a class="gtmContentClick" data-vars-link-text="from PitchBook finds." data-vars-click-url="https://link.axios.com/click/39091489.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" data-vars-content-id="6c25c45d-5801-4e37-b86b-1ce7eab7fff8" data-vars-headline="Health tech VC funding turning around" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/39091489.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" target="_self">from PitchBook finds.</a> Why it matters: The much hoped-for funding turnaround is finally being borne out in the data.

Health tech VC funding turning around

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