In a familiar refrain, digital health companies continue to break financing records, raising a total of $14.7 billion in the first half of 2021..
Considering that the start of the Covid-19 pandemic, more financiers have turned their attention to digital health companies. Far, the pattern doesnt appear to be letting up.
In the very first half of the year, business raised a total of $14.7 billion across 372 deals, according to a report launched today by Rock Health. By comparison, they raised $14.6 billion in 2020– a record for the time– and simply $7.7 billion in 2019.
Digital health companies broke funding records again in the very first half of 2021, according to a report by Rock Health.
Large funding rounds, led by personal equity companies and development funds, sustained the record-breaking numbers, representing more than half of the total. Tiger Global Capital has not been shy about its strategies to invest in digital heath, and led 14 financing rounds so far this year, including big financial investments in billing platform Cedar and digital physical therapy start-up Hinge Health.
Some of the most significant financing rounds so far this year include:.
More companies prepare big exits, however returns declineWhile more business continued to line up for big exits, the picture looks a little bit various than it did previously this year. A total of 11 companies have gone public so far this year, and another 11 are lined up to go public through mergers with special-purpose acquisition companies (SPACs). Digital health companies that just recently went public havent carried out as well just recently as their predecessors.
More companies prepare huge exits, however returns declineWhile more business continued to line up for huge exits, the image looks a bit various than it did previously this year. A total of 11 companies have actually gone public so far this year, and another 11 are lined up to go public through mergers with special-purpose acquisition business (SPACs). Digital health companies that recently went public have not carried out as well just recently as their predecessors.
Of the 18 digital health business that went public on the New York Stock Exchange and the Nasdaq given that the beginning of 2020, their typical stock returns fell below Nasdaq levels in the second quarter, according to the report. On the other hand, those that went public before the pandemic normally performed on-par or better than the Nasdaq average.
Digital health companies that went public in 2020 or 2021 carried out even worse than the Nasdaq average in current months, according to Rock Health.
Its likewise possible that the interest for SPACs will wane, given a more examination from regulators, and a waning number of targets to take public. By Rock Healths count, there are 39 SPACs actively looking for health care targets and 47 extremely capitalized digital health startups, suggesting “sharp elbows are likely to emerge” as they contend for companies attention.
Picture credit: aurielaki, Getty Images.
