Global Digital Health Funding H1 2023:
Global Digital Health funding is down 49%
The first half of 2023 has been a challenging period for the Digital Health industry globally. The global funding in Q1 represented the worst since Q4 2019, totalling $5.3B. Although the second quarter saw a marginal increase, totalling $, the first 6 months fell short by close to 50% as compared to the previous year. Of note, funding in Digital Health in China is almost non-existent and in the US may have bottomed out.
While funding seems to have hit bottom, we witnessed an increased number of prominent bankruptcies of four notable companies, including Pear Therapeutics, in the first six months of the year, further highlighting the difficulties faced by Digital Health ventures to sustain in the current market.
The announcement of quarterly new partnerships has dropped to below 500, their lowest in four quarters, indicating a slowdown in innovation and collaboration within the sector. In the current political environment larger organizations are demonstrating an increased reluctance to invest in Digital Health in an effort to increase short term revenue and an increased effort in company restructuring to lower their burn.
Given this backdrop, let’s take a closer look at what happened in Digital Health during H1 2023 and how the sector fared this quarter.
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