Investors in the healthcare technology space expect digital health investments to reach a valuation of $15 billion to $25 billion in 2023, according to a Dec. 1 survey by global investment firm GSR Ventures.
Four digital health investments trends to know, according to the report:
- Return on investment and clinical validation of a technology's platform will be greatest indicators of a digital health company's success in 2023.
- Investors said valuations will be down in 2023 by around 20 percent for seed stage investments and down by 20 percent to 40 percent for Series A and Series B investments.
- Digital health startups specializing in provider and clinician burnout will have the most opportunity, according to investors. Startups specializing in changing reimbursement models and interoperability will also see an increased opportunity.
- Fifty-one percent of investors said that oncology is the most promising clinical space for startups, followed by mental health (37.3 percent), neurology (27.5 percent ), and primary care (23.5 percent).