Funding for digital health start-ups, especially in mental health, fall substantially in Q1 ’22
Global digital health funding falls 36% with fewer megarounds, IPOs (Fierce Healthcare):
After two years of record-breaking investment in digital health, capital flow into the sector took a dive in the first quarter of 2022.
The global digital health market saw funding decrease 36% from the fourth quarter of 2021, totaling $10.4 billion, as investors reacted to supply chain woes, the Russian invasion of Ukraine and a volatile stock market, according to a new CB Insights report.
While all tech sectors received smaller funding totals than the previous quarter, digital health plunged much further than others did … investor interest in mental health tech wavered as the market and public companies like Talkspace and Cerebral come under scrutiny. Mental health tech funding fell 60% from the previous quarter, hitting $792 million, the lowest funding level for the subsector since the fourth quarter of 2020…
The quarter could indicate a slower year for digital health startups overall as the pandemic-induced funding frenzy takes a backseat. Analysts expect M&A activity to hold steady, but external factors may continue to rock the global public and private markets.
The Report:
State of Digital Health Q1’22 Report (opens link at CBInsights website):
Description: After a record-breaking 2021, global digital health investment cools in Q1’22. Global digital health funding reached $10.4B in Q1’22, down 36% from the previous quarter. In our State Of Digital Health 2021 Rep...
Source: SharpBrains - Category: Neuroscience Authors: SharpBrains Tags: Brain/ Mental Health Technology & Innovation cerebral digital health digital health market Mental Health Tech Talkspace Source Type: blogs
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