Digital health deals expected to drop from last quarter’s record heights

by Bailey Amber
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Digital health funding and deals are expected to dip after reaching record heights last quarter. CBInsights shared its projections for the end of 2020, showing a slight decline in healthcare investing overall.

For the third quarter of 2020 healthcare investing passed record levels of $21.8 billion. The end of the year is expected to return to normal levels, with a projected $19.49 billion in funding. CBInsights also forecasted fewer early-stage deals and more late-stage deals.

The pandemic also shifted the spotlight on digital health companies, which raised a record of $8.4 billion last quarter, up more than 73% from the prior quarter. Going into the fourth quarter, digital health deals are expected to return to normal levels, with $5.54 billion in funding expected across 372 deals. As of Nov. 17, digital health companies had raised $2.89 billion across 194 deals.

CBInsights forecasts a slight decline in digital health funding for Q4. Photo credit: CBInsights

So far, there have been 30 reported healthcare “megadeals,” or rounds where companies raised more than $100 million. Most of them were for companies headquartered in the U.S. and China, with the U.S. seeing 16 megadeals and China seeing 11.

Here are some highlights:

  • LianBio, a Chinese biotech firm, raised $310 million in private equity funding.
  • PharmaPacks, a U.S.-based health and beauty online marketplace, raised $250 million in private equity funding.
  • Caris Life Sciences, a Dallas-based molecular science company, raised $235 million in private equity funding.
  • Minneapolis-based insurance startup Bind Benefits raised $105 million in a series B round.
  • Carbon Health, which manages a network of primary care and urgent care clinics, raised $100 million in series C funding.
  • Text-based primary care company 98point6 raised $118 million in a series E round.

Photo credit: TAW4, Getty Images

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