This year's digital health fundraising environment requires startups to focus more on their unit economics and pathway to profitability, according to Ian Wijaya, managing director at Lazard. He predicted that the ability to achieve profitability will be much more important in 2024 than it has been in the past four years or so.
In 2023, digital health fundraising took on a bit of a different shape, according to a new Rock Health report. Startups tried out some creative ways to keep their businesses afloat including series extension rounds, unlabeled fundraises and silent deals from existing investors.
Healthcare's share of the global PE and VC deal count will likely continue decreasing in 2024, according to a new Pitchbook report. The report also predicted that generative AI and surgical robotics will continue to be hot areas of interest for investors, and that there will be at least three digital health IPOs next year.
One investor is most interested in mental health startups that focus on high acuity care, while another wants to see companies that are built with the end-user in mind, they shared during recent interviews.