Lloyd Price’s Post

Digital Health Funding Q3 2024: Deal count drops with a trend to more focused strategic investments >> 💵In Q3 2024, digital health funding dropped in deal count but held steady in average deal size at $22M reflecting a trend to more strategic, focused investments. Year-to-date funding reached $8.2B across 110 deals 💵Digital health companies are launching new products and partnerships to enhance consumer experiences, and incorporate new features and capabilities into their products 💵Some digital health companies are preparing for IPOs, while others, struggling with public market pressures, are going private or exploring mergers. Examples include R1 RCM’s take-private deal and 23andMe's alignment for a similar move 💵M&A activity slowed in Q3, with 21 mergers compared to 28 in Q2 and 37 in Q1, resulting from less peer acquisitions rather strategic purchases aimed at expanding capabilities rather than growth through consolidation 💵Companies are increasingly using acquisitions to merge diverse solutions into comprehensive offerings. DarioHealth acquired Twill to enhance mental health features, and Fabric Health made several acquisitions to strengthen its virtual care platform. This trend allows companies to avoid the cost and time of developing new products 💬 POV: This strategic focus on broadening caoababilities is certainly a trend I am seeing both in aquisitions and partnerships. Last month ŌURA acquired metabolic health startup Veri (acquired by ŌURA) And in August Reproductive health app Clue partnered with Headspace to help reduce cycle related stress and Noom partnered with Zumba for dance instructors to become Mindset Coaches 💬 Rock Health uses the flattering term ‘tapestry’ to describe the merging of these complementary solutions. However, there are risks, while capabilities may fit on paper, integration often proves challenging. Instead of a cohesive tapestry, we might end up with piecemeal patchwork solutions, weak at the seams. I believe companies will increasingly shift toward strategic partnerships and building out their own capabilities, recognizing that seamless integration is not always easy 👇Link to Rock Health report in comments #digitalhealth #funding

Digital Health Funding Q3 2024: Deal count drops with a trend to more focused strategic investments >> 💵In Q3 2024, digital health funding dropped in deal count but held steady in average deal size at $22M reflecting a trend to more strategic, focused investments. Year-to-date funding reached $8.2B across 110 deals 💵Digital health companies are launching new products and partnerships to enhance consumer experiences, and incorporate new features and capabilities into their products 💵Some digital health companies are preparing for IPOs, while others, struggling with public market pressures, are going private or exploring mergers. Examples include R1 RCM’s take-private deal and 23andMe's alignment for a similar move 💵M&A activity slowed in Q3, with 21 mergers compared to 28 in Q2 and 37 in Q1, resulting from less peer acquisitions rather strategic purchases aimed at expanding capabilities rather than growth through consolidation 💵Companies are increasingly using acquisitions to merge diverse solutions into comprehensive offerings. DarioHealth acquired Twill to enhance mental health features, and Fabric Health made several acquisitions to strengthen its virtual care platform. This trend allows companies to avoid the cost and time of developing new products 💬 POV: This strategic focus on broadening caoababilities is certainly a trend I am seeing both in aquisitions and partnerships. Last month ŌURA acquired metabolic health startup Veri (acquired by ŌURA) And in August Reproductive health app Clue partnered with Headspace to help reduce cycle related stress and Noom partnered with Zumba for dance instructors to become Mindset Coaches 💬 Rock Health uses the flattering term ‘tapestry’ to describe the merging of these complementary solutions. However, there are risks, while capabilities may fit on paper, integration often proves challenging. Instead of a cohesive tapestry, we might end up with piecemeal patchwork solutions, weak at the seams. I believe companies will increasingly shift toward strategic partnerships and building out their own capabilities, recognizing that seamless integration is not always easy 👇Link to Rock Health report in comments hashtag #digitalhealth hashtag #funding …more

Is it M&A Time for Digital Health? The digital health landscape is shifting! With VC funding drying up and IPOs less appealing, mergers and acquisitions (M&A) are emerging as a critical lifeline for many startups. Why? ✅ Cash Crunch: Many digital health companies need cash infusions to survive and thrive. ✅ Alternative Growth: M&A provides a way to expand product offerings, cut costs, and offer investor liquidity. ✅ Consolidation: We're already seeing this in areas like digital mental health and telehealth, driven by the need for innovation and broader reach. Big players are making moves (think kidney care and telehealth giants), and the trend is only expected to accelerate. Disruptive innovation, changing care models, and even the entry of retail giants like Amazon are all adding fuel to the fire. Want to know where digital health is headed? Check out this insightful article: https://lnkd.in/gqyfCgYv #digitalhealth #healthcare #mergersandacquisitions #innovation #healthtech

20+ Digital Health companies went public in 2021: Where are they now? https://lnkd.in/eNCUk_DY There were a confluence of factors that fueled the surge of digital health companies going public in 2021: > Pandemic-driven Growth: The COVID-19 pandemic accelerated the adoption of digital health solutions. Telemedicine, remote monitoring, and other digital tools became crucial for patients and healthcare providers. This growth in usage attracted investor interest in the potential of the digital health market. > Increased Investor Appetite: Investors, buoyed by the overall market optimism in 2021, were looking for promising new sectors. The rapid growth of digital health and the potential for disruption in the healthcare industry made it an attractive investment proposition. > Rise of SPACs: Special Purpose Acquisition Companies (SPACs) became a popular alternative to traditional IPOs in 2021. SPACs offered a faster and potentially less regulated path to going public, which appealed to many digital health companies. > Competitive Landscape: With more investor dollars flowing into the space, companies felt pressure to go public before their competitors to secure funding and establish themselves in the market. In essence, it was a perfect storm of factors: a growing market, eager investors, a new and faster funding option, and a competitive environment. Mergers, Acquisitions, Growth and Strategy for Healthcare Technology companies in EMEA > Healthcare Technology Thought Leadership from Nelson Advisors – Market Insights, Analysis & Predictions. Visit https://lnkd.in/ezyUh5i > HealthTech Corporate Development - Buy Side, Sell Side, Growth & Strategy services for Founders, Owners and Investors. Email [email protected]  > HealthTech M&A Newsletter from Nelson Advisors - HealthTech, Health IT, Digital Health Insights and Analysis. Subscribe Today! https://lnkd.in/e5hTp_xb > HealthTech Corporate Development and M&A - Buy Side, Sell Side, Growth & Strategy services for companies in Europe, Middle East and Africa. Visit www.nelsonadvisors.co.uk  https://lnkd.in/eNCUk_DY

In a recent Modern Healthcare article, Brock E.W. Turner discusses the challenges facing #digitalhealth companies preparing for IPOs in 2025. LRVHealth Managing Partner Keith J. Figlioli shares his insights on how improving macroeconomic conditions could influence the push for these companies to go public.    Read the full article here: https://lnkd.in/eu9XzYKE

Indiana is putting pressure on PE in healthcare. This article in Modern Healthcare hints at what could be an even more comment outcome: https://lnkd.in/edpubwTs #healthcare #private equity #innovation

Check out Rock Health's insights on Q1 digital health venture funding! The tldr (but do actually read it!): - Dollars invested are down ⬇ - Deal volume is up ⬆ - AI is taking the cake 🎂 - The publicly traded DH index has stumbled 📉 - The market is looking for outcomes in addition to growth ⚕ . Thanks to Adriana Krasniansky and Mihir Somaiya for laying it out for us! #digitalhealth

That’s a wrap on Q1 2024, which saw $2.7B in digital health venture funding across 133 deals. In our quarterly funding recap, Rock Health Advisory’s Adriana Krasniansky and Mihir Somaiya break down how "greater expectations" are shaping market moves: • Investors and founders are finding their stride, closing deals at more measured check sizes—while the quarter was the lowest funding quarter for digital health since 2019, the total deal amount beat out each of the past 6 quarters • Outcomes are everything: competition is pushing startups to continue proving out their clinical and economic value relative to competitors, while investors are focused on backing tangible outcomes (and securing favorable deal terms) • Notably—though not surprisingly—AI-enabled digital health companies captured 40% of the quarter’s funding dollars  • Three digital health companies delisted, signaling a recalibration within the sector's publicly-traded cohort and reshaping expectations for companies eyeing a public exit Read the piece for more on Q1’s funding and exit trends: https://lnkd.in/gMAFX2JW #DigitalHealth #HealthcareInnovation #FundingTrends #VentureCapital

Nelson Advisors Partner and HealthTech M&A Advisor Lloyd Price sharing his thoughts on the Healthcare Technology IPO market - candidates, timings and sub sectors to watch, with the team at MergerMarket https://lnkd.in/eieA_uwf 'Lloyd Price, a partner at Nelson Advisors who specializes in healthcare, referred to a “corrective IPO market” and said listing candidates in the health tech and digital health sectors should boast, at least, USD 100M EBITDA. This is an increase on the previously acceptable USD 60m to USD 70m EBITDA to list on either Nasdaq or NYSE, he said. He concurred that strong candidates for IPOs in healthcare technology need long-term provider contracts which cannot be easily replaced, making both predictable revenue streams as well as being able to address value-based care models. Price mentioned, among possible IPO candidates, Kaia Health, Sword Health and Hinge Health, all of which operate in a massive addressable market and have developed new care delivery platforms with AI to predict better outcomes. They also benefit from the tailwinds of the musculoskeletal market post-pandemic and a shift to working-from-home. Other potential candidates Price mentioned include Aledade, a primary care platform for clinical decision support, and Omada Health, which is tapping into the chronic disease management market with both online and offline support channels. Founders, Owners and Investors to assess whether they should 'Build, Buy, Partner or Sell' in order to maximise shareholder value.   > HealthTech M&A - Buy Side, Sell Side, Growth & Strategy services for companies in Europe, Middle East and Africa. Visit www.nelsonadvisors.co.uk   > HealthTech M&A Newsletter from Nelson Advisors - HealthTech, Health IT, Digital Health Insights and Analysis. Subscribe Today! https://lnkd.in/e5hTp_xb   > HealthTech Corporate Development - Buy Side, Sell Side, Growth & Strategy services for Founders, Owners and Investors. Email [email protected]   > Healthcare Technology Thought Leadership from Nelson Advisors – Market Insights, Analysis & Predictions. Visit https://lnkd.in/e25VecXk #HealthTech #DigitalHealth #HealthIT #NelsonAdvisors #Mergers #Acquisitions #Growth #Strategy https://lnkd.in/eieA_uwf