I wrote about Canada, yesterday. There’s more trouble in Europe.
Digital health startups scrambling to exit as VCs shift priorities | Sifted
So far this year 33 digital health startups have been acquired or bought out, according to Dealroom, and with four months left on the clock that figure will almost certainly top the 2021 total of 35. The number of acquisitions in 2022 could well end up trumping the record of 44 set in 2017 and 2018.
Pandemic-driven digital adoption played a huge role in whipping up excitement in the sector, as regulators, practitioners and patients flocked to remote healthcare solutions. In 2020 and 2021, investors wrote cheques to the tune of $6bn for digital health platforms, more than the previous 10 years combined.
And despite the downturn, many founders and VCs say digital health is more immune to unfavourable market conditions given that health services are always the last thing to get cut from personal and government budgets when the purse strings are tightening.
While the blurb highlights the salient features, it’s important to note here that sky high valuations are usually due to hype or “potential market opportunity”. Healthcare enterprises are notoriously resistant to change, and unless anything is mandated or any other competitor shows the risk appetite to move into an unchartered domain, no one takes the initiative. Potential opportunities require a reality check.
RadOncNotes 