Greater than two dozen digital well being firms raised late-stage mega-rounds within the first quarter of 2022, reflecting an even bigger development within the sector that is seeing buyers write bigger checks for Collection C rounds and past, based on information from CB Insights and Rock Health.
Why it issues: Though the primary quarter of 2022 may go down in historical past as the primary time in a decade that well being tech funding slowed, you’d by no means understand it wanting on the measurement of a few of its largest offers.
By the numbers: 13 digital well being firms collected rounds of $150 million or extra.
- In 2020, Collection D+ raises averaged $80 million.
- Over the previous 15 months, offers of that stage have averaged round $130 million.
Particulars: Some frequent themes among the many firms with Q1’s largest rounds embody:
- Power situation administration: Somatus, Freenome, Lyra Well being, Omada Well being.
- Medical information evaluation: DNAnexus, ConcertAI, Verana Well being.
- Telehealth and digital pharmacy: Ro, Alto Pharmacy.
Between the traces: All this late-stage exercise suggests entrepreneurs are shifting their technique away from near-term public debuts amid powerful market situations, as a number of executives have informed Axios not too long ago. Different elements within the works:
- Corporations could possibly be rejiggering their exit roadmaps towards conventional IPOs and away from once-hot SPACs, based on Rock Well being.
- Enterprise corporations which have been sitting on dry powder they collected in 2021 could have been extra more likely to reinvest it in startups they know or had beforehand backed.
What’s subsequent: Tiger International and D1 Capital Companions are simply two big-name corporations that plan to pull back on later-stage deals and as a substitute again earlier funding rounds, one thing a number of executives inform Axios they anticipate to affect their enterprise for months to years.
- “So far as fundraises, I believe every thing will go earlier, in direction of seed rounds and Collection A,” says Sami Inkinen, the founder and CEO of digital diabetes firm Virta Well being.