Entrepreneur India’s Post

H1 2024 digital health venture funding numbers are in—and with $5.7B deployed across 266 digital health startup raises in the first half of the year, 2024 could potentially outperform 2023 if investment pace holds. In our H1 2024 funding recap, market and funding trends identified by Rock Health Advisory’s Adriana Krasniansky, Mihir Somaiya, and Sari Kaganoff include:  • Early-stage deals accounted for 84% of labeled raises  • The prevalence of unlabeled fundraises started to taper  • Startups leveraging AI received 34% of total sector funding  • The digital health IPO market is showing early signs of life Read on to digest the past six months of digital health investments, public exits, acquisitions, and more: https://lnkd.in/gQw6Xqzq #digitalhealth #venturefunding #healthcareinnovation #markettrends

I always read Rock Health's digital health reports as they give a nice pulse feel for what is happening in the digital health funding space. Good to see funds raised in H1 2024 suggest funding in the sector seems to have stabilized at 2023 levels. Its no surprise the report emphasis the buzz around AI and healthcare. There have been clear winners in the AI healthcare space in the area of process and cost optimization and the R&D space. The impact of AI in care and treatment delivery is so far much more muted. One area I never though to look at AI was in its ability to bring together multiple healthcare pathways and digital point solutions into a more holistic seamless experience for the patient. There is a clear trend away from using stand alone digital health point solutions, and could AI address this challenge by facilitating the efficient integration of disparate processes and technology into unified care programs. I can see this happening with digital health products but this will be more tricky to do with physical care programs involving clinicians and HCPs. “AI is helping us combine multiple parts of the care journey, across all care experiences. In the future, benefits navigation, clinical guidance, and care delivery won’t be delivered by separate companies or point solutions within the healthcare ecosystem. They’ll be features that work in concert within products, and they’ll happen in under 90 seconds for a seamless patient experience.” – Glen Tullman, CEO, Transcarent and Managing Partner, 7wireVentures

As detailed in our H1 funding report, a few findings signal that #digitalhealth investments may be nearing an inflection point:  📈 If H1's funding pace continues, 2024 will be the first post-COVID year in which the #venture market did not contract ☀️ Unlabeled funding rounds, which tend to spike during periods of transition between market conditions, declined for the second consecutive quarter (33% in Q2 vs. 55% in Q4 '23) 💸 The 21 month dry spell in public exits is over—three companies exited on the NASDAQ or NYSE in Q2 (Tempus AI, Waystar, Nuvo Cares) We're hopeful that H2 sees an extension of these trendlines, calming the waters for #healthcare #startups after a couple years out in choppy waters. Read the full report for deeper insights from my colleagues Adriana Krasniansky, Sari Kaganoff, & Mihir Somaiya

After a challenging year for healthcare investments, Q2 2024 marked a significant resurgence in venture capital funding for NYC-based startups.   Last year saw a slump in healthcare investments, with many startups struggling to secure necessary funding. Fast forward to now and 8 of the top 17 rounds, highlighted in AlleyWatch's article, show funding injections to Healthcare related companies, bringing renewed optimism and growth to the industry.   Notable raises include: 🏥 SmarterDx securing $50MM from Transformation Capital and Bessemer Venture Partners as they develop automated pre-bill review tech to help hospitals maintain revenue integrity, delivering $2MM NRR/10,000 patient discharges. 💸 adonis raising $31MM to drive better revenue outcomes and lower the administrative burden on your revenue cycle operations.   This renewed investor confidence highlights the critical role of healthcare startups in driving future advancements. The momentum is building, and it’s an exciting time for innovators, investors, and professionals in the healthcare space.   Congrats to all those receiving funding - the buzz around the NYC HealthHub is certainly back!   Keen to meet in the city? Drop me a note and we can go for a coffee, on me!   #HealthTechMeetUp #StartupFunding #NYCStartups 

Remember SPACs? They are famous for horrible incentive alignment and generally turned out to be TERRIBLE. Well, not this one! hims & hers is a DTC healthcare company that went public in 2021 via SPAC. Today, it is trading at $4.7B in market cap. That's just about where it was at its peak right after its debut (no small feat given that was peak digital health euphoria in the stock markets!) Its revenue grew from $149M in 2020 to $872M in 2023, more than 6x in 3 years. It's done so without losing tons of cash, staying close to profitability every year, and it just had its first profitable quarter in Q1. So there are real SPAC'ed businesses after all! Any other examples come to mind? #Startups

Noida-based omnichannel diagnostics service provider Redcliffe Labs has raised $42 million in a Series C funding round led by Denmark’s Investment Fund for Developing Countries (IFU). IFC invested $20 million, followed by LeapFrog Investments with $15 million. The remaining capital came from the existing investors HealthQuad and Spark Growth Ventures. The company plans to use the raised capital for expansion, with a focus on increasing its presence in Tier II and Tier III cities across India. Read the full story here: 👇 https://lnkd.in/e42iiFZ3 #funding #healthcare #health #Investors #startup #noida #investment #indianstartupnews

Oravel Stays Ltd, the parent company of OYO, has secured INR 1,457 crore from a consortium of investors in its latest funding round, according to sources. The IPO-bound unicorn raised nearly INR 1,040 crore in the Series G round, following an earlier INR 416.85 crore raise in the same series, bringing the round to a close. Documents reveal that 99.99 per cent of shareholders approved the additional equity issuance during an EGM held on August 8. Sources indicate that the capital will be utilised to fuel OYO's growth and global expansion plans. The additional funding maintains the company's valuation at USD 2.4 billion, consistent with the first Series G tranche issued to InCred in July, according to a source. Read full story here: https://lnkd.in/g3bzhAUH #oyo #funding #startups #growth Ashu Agrawal

Why are venture capital firms increasingly investing in clinical care delivery? My latest for Forbes. I explore the investing landscape and how VC (and private equity) firms are increasing their bets on care delivery organizations. I specifically take a look at the recent acquisition of Summa Health by venture capital titan, General Catalyst There's also an important discussion on why non-traditional players are interested in the healthcare landscape. For example, tech giant Amazon has made incredible strides in the space, with its One Medical platform and Amazon Pharmacy One key answer: healthcare is ripe for disruption, and these players hope to become primary catalysts for that disruption As always, keen to hear your thoughts and feedback! CC: Hemant Taneja, Sue Kwon, Marc Harrison, Cliff Deveny MD, Daryl Tol, Josette Beran, Harish Battu, Benjamin Sutton, Molly Blaauw Gillis, Reva Nohria, Sing Yuen (Joey) Chan, Pranay Orugunta, Matt Schwartz, Rachel Sazanowicz, Sandra Desautels, Andy Jassy, Andrew Diamond, Vin Gupta, MD MPA, Christina Smith, Neil Lindsay, Katie Stafford #health #digital #innovation #ai #GenAI #cloud #invest #jobs #economy #VC #PE https://lnkd.in/gY3VsHCH

We are excited to share that NLC Health Ventures has recently successfully raised €14 million (in debt and equity), bringing the total funds raised in 2023 to an impressive €58m! 🚀 At NLC, our investments prioritize innovations that significantly improve existing technologies, positively impact patients and society, and have commercial viability. But building a healthtech venture differs significantly from your typical startup. And that's where NLC stands out. We understand the challenges in an industry as complex as healthcare and provide comprehensive support that goes beyond the monetary aspect. Our approach includes strategic guidance and operational resources, creating a supportive ecosystem for ventures to thrive. 🌐🚀 We offer strategic guidance and operational resources, creating a supportive ecosystem that goes beyond the monetary aspect. Our CEO and founder, Bert-Arjan Millenaar, recently had the opportunity to talk about our venture-building approach in an interview with Impact-Investor.com. Discover more about our strategies, insights, and the future of healthcare innovation in the article. You can find the link to the full article in the comments below! ⬇️ #nlc #impactinvesting #healthtech

One of NLC Health Ventures’s activities to overcome the challenges currently facing the healthcare sector, is by facilitating early stage investment. As also mentioned in our impact report: Throughout 2023, NLC raised over €58 million for NLC, our funds, and our ventures collectively. In comparison, since NLCs inception in 2014, we have raised over €175 million, of which over a third was thus raised in 2023. Thank you Impact-Investor.com for the interview with Bert-Arjan Millenaar Millenaar on our venture building model explaining how we aim to make impact and return from the very early stages of healthtech. I am looking forward to making many more impactful investments with our NLC Health Impact Fund in 2024! #impactinvesting #healthcare #venturebuilding #innovation #healthtech