U.S. health tech venture capital investment was healthy in 2022 despite an economic downturn, according to a Jan. 6 report from SVB, the parent of Silicon Valley Bank.
SVB's "Healthcare Investments and Exits" report provides information on venture capital fundraising, investments, and merger and acquisition and initial public offering trends. Here's some trends they found about health tech investments, mergers and acquisitions, and initial public offerings:
- Health tech funding shifted toward early-stage investment, where valuations were less impacted by public market comps.
- Investment in health tech exceeded the record seed/series A activity from 2021.
- IPOs halted as public health tech stock performance fell throughout 2022. However, merger and acquisition volume has remained strong, almost on pace with 2021's record.
- Public (and private) healthcare companies led health tech mergers and acquisitions in 2022.
- Private merger and acquisition deals were smaller in value for health tech compared to the previous two years.