Asia Pacific Digital Health Ecosystem 2022 Year End Report
Galen Growth is pleased to share with you our 2022 Year End insights and deep dive into the Asia Pacific Digital Health Ecosystem. We focus our analysis on the ecosystem key trends, through the lens of:
- Key categories
- Disease areas
- Noteworthy partnerships
- Regulatory approvals
- Venture funding
HealthTech Alpha, a Galen Growth proprietary solution, powers this report!
- Digital Health Headlines
- Ecosystem Insights
- Investment Insights
- Cluster Focus
- Therapeutic Focus
- Deep Dives
- What’s Next?
- Digital Health has its feet back on the ground after the extraordinary 2-year pandemic period funding spree. In this year of geopolitical turmoil and looming economics recession, Digital Health is showing signs of resilience, with Asia Pacific deploying funding that exceeds the pre-pandemic levels of 2019 by 1.1x, ventures submitting more than 118 regulatory filings, and an increase of 1.3x in partnering activity over 2021.
- Asia Pacific followed the global trend of steadily declining venture capital funding across the first 3 quarters of 2022 and a strong rebound in Q4, with a final annual venture funding value of $5.79B, a YoY deficit of, 41% below 2021, ushering in a new phase of Digital Health, with less extravagance and higher expectations for proof points and ROI.
- M&A activity has lost momentum, with a dip of 33% YOY in Asia Pacific, however, industry consolidation is becoming stronger, with Digital Health ventures accountable for 60% of global acquisition activity. Acquisitions are being fueled by the slowdown in venture funding, with an average of only 34% of Growth Stage ventures having raised capital in the last 18 months in Asia Pacific.
- The total venture funding deceleration in Asia Pacific was strongly driven by China’s investment falling by 66% YOY to its lowest funding since 2017 poised by some of the strictest pandemic regulations in the word, despite Northeast Asia doubling its funding to $1.9B surpassing China and South Asia which dropped by 30% as compared to 2021
- Digital Health ventures in Asia Pacific will find the path forward in 2023 to be more challenging, with declining venture valuations, but ventures have already shown resilience in 2022, and this new landscape will strengthen the pipeline of ventures, driving innovation and business model viability further to show the value of Digital Health tools for improving healthcare research and delivery.