- Q1 2024 Digital Health funding closed at $5.1B throughout 347 presents.
- M&A is the predominant exit route.
- 480 partnerships had been supplied in Q1 2024.
Overview
Q1 2024 marks a stagnation of the Digital Health funding decline witnessed in 2023. The first quarter recorded $5.1 billion throughout 347 presents. The old twelve months became once a monumental reset in Digital Health, marked by consolidation. An essential shift in investment dynamics, and elevated adoption of most modern technologies akin to Generative AI.
The US continues to drive Digital Health funding in Q1 2024. With North The US closing at $3.8 billion, matching the old twelve months’s first quarter. Moreover, Digital Health funding in Europe reaches $853 million in Q1 2024. Surpassing the same duration within the old twelve months by 22%.
Total, Q1 2024 sets a cautiously definite stage. For how the Digital Health panorama might possibly probably perchance fare within the relaxation of the twelve months.
Endeavor Capital in Key Markets Deployed by Quarter (2022 – Q1 2024)
Blueprint Q1 2024 presents and partnerships within HealthTech Alpha
We indulge in created complimentary Hubpages, handiest readily obtainable in HealthTech Alpha. The save it’s probably you’ll probably perchance have the option to entry a detailed breakdown of all. Digital Health enterprise presents and partnerships recorded throughout the major quarter of 2024. Delve into the guidelines within the again of the most modern trends and essential presents shaping healthcare technology’s future.
- Q1 2024 Digital Health Funding
- Q1 2024 Digital Health Exits (M&A and IPO)
- Q1 2024 Digital Health Partnerships
Excessive-Set aside Deals Return in Q1 2024
Q1 2024 seen $5.1B invested throughout 347 presents in Digital Health globally. Funding ranges had been identical to the old quarter ($5.2B) and the major quarter of 2023 ($5.0B). Despite extra investment deployed, the deal volume declined by -20%. In Q1 2024 in comparison with the same duration final twelve months. Indicating that higher funding rounds are having a comeback. The common deal size elevated by 30% to $16.5M in Q1 2024.
World Endeavor Capital Funding Deployed by Quarter (2019 – Q1 2024)
Q1 2024 Digital Health Funding Traits by Design
North The US Stays Accurate
North The US reached $3.8B invested in Q1 2024, an delay of 12% in comparison with $3.4B in Q4 2023. In contrast with final twelve months’s duration, funding within the major quarter matched that of Q1 2023.
North The US Digital Health funding remains virtually completely pushed by the US. 98% of the deployed capital became once raised within the US. Whereas appropriate 2% of the funding became once closed in Canada.
Freenome represented the greatest deal in North The US in Q1 2024 – a Sequence E round of $254M led by Roche, with the participation of prominent investors. Alongside with Andreessen Horowitz, BrightEdge, ARK Invest, ArrowMark Partners, Artis Ventures, Bain Capital Life Sciences, Quest Diagnostics, and others.
Top 10 Digital Health Deals by Funding Set aside, North The US, Q1 2024
| Endeavor | Nation of Initial Incorp. | Predominant Category | Stage | Date | Deal Set aside |
| Freenome | United States | Omics Linked Diagnosis | Sequence E | 2 / 2024 | $254M |
| BioAge Labs | United States | Drug Discovery | Sequence D | 2 / 2024 | $170M |
| Abridge | United States | Doctor / Sanatorium | Sequence C | 2 / 2024 | $150M |
| Lightship | United States | Decentralised Clinical Trials | Sequence D | 2 / 2024 | $136M |
| Zephyr AI | United States | Drug Discovery | Sequence A | 3 / 2024 | $111M |
| Rightway Healthcare | United States | Care Coordination | Sequence D | 3 / 2024 | $109M |
| DecisionRx | United States | Prescriptive Analytics | Debt Financing | 1 / 2024 | $100M |
| Claroty | United States | Cybersecurity | Strategic | 3 / 2024 | $100M |
| Harbor Health | United States | Integrated Alternate choices | Sequence B | 1 / 2024 | $96M |
| Frontier Medicines | United States | Drug Discovery | Sequence C | 2 / 2024 | $80M |
Top 10 Digital Health Deals by Funding Set aside, North The US, Q1 2024
Europe
In Q1 2024, Europe’s Digital Health funding surged to $853M. Notably, this marked a 52% delay in comparison with Q4 2023. When funding ranges dipped to $560M, representing its weakest quarter since 2020. In contrast with Q1 2023, the save total investment stood at $700M, funding in Q1 2024 elevated by 22%. The growth trajectory is fueled by the doorway of international investors. An evolving regulatory ambiance, and governmental toughen, all contributing positively to the sector’s model.
Scientific MicroInstruments, an Italy-primarily based fully enterprise that presents surgical methods, raised the greatest deal in Europe. A $110M Sequence C financing round led by Constancy Administration & Examine Company.
Top 10 Digital Health Deals by Funding Set aside, Europe, Q1 2024
| Endeavor | Nation of Initial Incorp. | Predominant Category | Stage | Date | Deal Set aside |
| Scientific Microinstruments | Italy | Telesurgery | Sequence C | 2 / 2024 | $110M |
| Pelago | United Kingdom | Digital Therapeutics | Sequence C | 3 / 2024 | $58M |
| Genomics PLC | United Kingdom | Omics Linked Applications | Sequence D | 1 / 2024 | $45M |
| Bioptimus | France | Bioinformatics | Seed | 2 / 2024 | $38M |
| Relation Therapeutics | United Kingdom | Drug Discovery | Seed | 3 / 2024 | $35M |
| Endeavor Therapeutics | United Kingdom | Drug Discovery | Sequence B2 | 1 / 2024 | $33M |
| Onera Health | Netherlands | Distant Monitoring Units | Sequence C | 1 / 2024 | $33M |
| Quantum Surgical | France | Telesurgery | Seed | 3 / 2024 | $32M |
| Aqemia | France | Drug Discovery | Sequence A1 | 1 / 2024 | $32M |
| Aktiia | Switzerland | Distant Monitoring Units | Sequence B | 2 / 2024 | $31M |
Top 10 Digital Health Deals by Funding Set aside, Europe, Q1 2024
Asia Pacific Contracts Extra
In Q1 2024, enterprise capital investment in APAC totalled $379M – the lowest total investment this space has witnessed within the past five years. This represents a chief decline in comparison with the old quarter, Q4 2023. Which closed at $1.1B, reflecting a interesting -65% decline quarter-over-quarter. Moreover, evaluating twelve months-over-twelve months investment, funding in Q1 2024 declined by -12% in comparison with Q1 2023, which closed at $432M.
As no longer too lengthy within the past reported by the World Monetary institution. Non-public investment, no longer appropriate in Digital Health. Nonetheless throughout industries, is tormented by the total slower development of Asian economies. Components akin to debt, trade limitations, and policy uncertainties in Asia contributed to this model. Moreover, higher ardour charges by the U.S. Federal Reserve and other major central banks. In comparison with pre-pandemic ranges and China’s transition to a extra balanced development notion extra impact financial development.
In some unspecified time in the future of 2023, funding in APAC Digital Health exhibited broad fluctuations by quarter, starting from $432M to $1.1B. Given the unheard of fluctuations witnessed within the old twelve months. Gazing how the APAC investment panorama unfolds in 2024 will be spirited.
Ultrahuman, an India-primarily based fully enterprise that develops wearable technology. Secured the greatest deal on this space—a $35M Sequence B financing with the participation of Blume Ventures, Steadview Capital, Nexus Endeavor Partners, Alpha Wave, and Deepinder Goyal.
Top 10 Digital Health Deals by Funding Set aside, APAC, Q1 2024
| Endeavor | Nation of Initial Incorp. | Predominant Category | Stage | Date | Deal Set aside |
| Ultrahuman | India | Wearables | Sequence B | 3 / 2024 | $35M |
| Aillis (アイリス) | Japan | Diagnosis Instruments | Sequence D | 3 / 2024 | $33M |
| DPM (数字精准医疗) | China | Scientific Imaging | Sequence C | 1 / 2024 | $28M |
| Leapstack (栈略科技) | China | Health Insurance | Sequence C1 | 1 / 2024 | $28M |
| Zeno Health | India | Online Pharmacy | Sequence C | 2 / 2024 | $25M |
| AITRICS (에이아이트릭스) | South Korea | Sanatorium | Sequence B | 3 / 2024 | $20M |
| CureSkin | India | Health / Symptom Checker | Sequence B | 3 / 2024 | $20M |
| Sonder | Australia | Company Health | Sequence B1 | 1 / 2024 | $16M |
| Manteia (Manteia) | China | Scientific Imaging | Sequence B | 1 / 2024 | $15M |
| Bertis (베르티스) | South Korea | Omics Linked Diagnosis | Pre-IPO | 2 / 2024 | $15M |
Heart East Funding Falls Short Below Geopolitical Uncertainty
Within the Heart East, enterprise capital funding plummeted to $22M in Q1 2024, an 81% QoQ plunge in comparison with the $116M invested in Q4 2023. Moreover, total investment in Q1 2024 declined by 55%. Twelve months-over-twelve months in comparison with Q1 2023, which closed at $50M.
Geopolitical uncertainties, significantly in Israel, the major driver of health investments within the Heart East. Are vital contributors to the slower model of non-public investment within the major quarter.
Despite the rapid challenges, the health technology sector remains resilient. DigitalOwl, an Israel-primarily based fully enterprise providing an AI-powered platform for Health Voice Administration. Raised the very very finest funding in Q1 2024, with the Reinsurance Community of The US investing $12M.
Top 5 Digital Health Deals by Funding Set aside, Heart East, Q1 2024
| Endeavor | Nation of Initial Incorp. | Predominant Category | Stage | Date | Deal Set aside |
| DigitalOwl | Israel | Health Insurance | Sequence B | 1 / 2024 | $12M |
| Fijoya | Israel | Company Health | Seed | 3 / 2024 | $8M |
| QuantHealth | Israel | Bioinformatics | Sequence A1 | 1 / 2024 | $2M |
| Neurolief | Israel | Digital Therapeutics | Strategic | 1 / 2024 | undisclosed |
| Clinicy | Saudi Arabia | Doctor / Sanatorium | Sequence A | 1 / 2024 | undisclosed |
Top 5 Digital Health Deals by Funding Set aside, Heart East, Q1 2024
Challenges and Pressures on Enhance Stage Ventures Worldwide
Funding pressures on development stage ventures (Sequence B and C) continue to mount as these ventures battle to acquire investments. By the discontinue of the 1st quarter, the typical time without funding for Sequence B and Sequence C ventures stood at 34 months, highlighting the extreme pressures these ventures face.
The rapid bother for development ventures within the contemporary non-public investment market. Stems from a shift in investor sentiment and declining valuations because of the adjusted income multiples. This shift is extra influenced by a collection of excessive-profile financial spoil cases. Which indulge in led investors to undertake a extra profit-pushed technique in comparison with the growth-at-all-tag strategy of old years. Basic examples embody Pear Therapeutics, Babylon Health, Olive AI, and Cano Health,, which declared financial spoil in 2023.
Despite these challenges, funding of development stage investment rounds grew by 32% quarter-on-quarter in comparison with Q4 2023, with the collection of Sequence B and Sequence C presents totalling 89, the very very finest since Q2 2022. The contemporary injection of funding has alleviated some stress. The chart under reveals that the piece of development stage ventures that indulge in secured funding within the 18 months elevated by 1 to 6% for APAC, North The US and Europe.
Whereas valuations are but to capitulate, funding challenges push ventures in the direction of severe aspects. Of the 347 presents closed globally, 57 (16%) had been Sequence extensions. Ventures are furthermore seeking alternative funding sources, alongside with enterprise debt, with $144M of debt and convertible notes funded throughout 21 presents in Q1 2024.
Historical Fragment of Enhance Stage Digital Health Ventures that indulge in raised funding within the old 18 months, by quarter
Digital Health M&A dominates in Q1 2024
Within the major three months of 2024, 41 enterprise exits had been reported, comprising 38 M&As, 2 IPOs, and 1 SPAC. Exit project in Q1 2024 declined by 21% QoQ as in comparison with Q4 2023. Which witnessed 52 exits, all of which had been M&A. Moreover, in comparison with Q1 2023, which seen 52 exits (50 M&A, 1 IPO, 1 SPAC), exit project in Q1 2024 lowered by 21% YoY.
In 2024, public market debuts, significantly within the US, had been significantly absent amidst an underwhelming public market performance and delisting of corporations. In Q1 2024, three digital health corporations – Veradigm, Science 37, and Higher Therapeutics – delisted from NYSE and NASDAQ, whereas others like Amwell, Clover Health, and 23andMe bought warnings for doable delisting.
On the opposite hand, despite the contemporary market stipulations, several corporations. Alongside with Lyra Health, Hinge Health, Datavant, and Maven, are gearing up for an IPO once the market stabilises.
Endeavor-to-enterprise acquisitions live the most well-preferred exit route, with over 60% of acquisitions within Q1 2024 going on between ventures.
With minimal IPO and SPAC project, investors are attempting to acquisitions to yield monetary returns. Final twelve months, we revealed a picture analysing MOIC – Extra than one on Invested Capital – a metric illuminating returns against preliminary investment. Several exits in 2022 and 2023 yielded indicative MOIC metrics exceeding 5x, underlining the sector’s monetary resilience.
Acquisition Fragment of Digital Health Ventures by Vertical
Q1 2024 Digital Health Funding Deployed to Top Clusters for GenAI
Galen Enhance’s industrial reference Digital Health taxonomy classifies ventures by their solution kinds into classes and clusters to analyse overall trends. Galen Enhance’s “Generative AI in Digital Health: Hype or Truth” picture revealed in Q4 2023 pinpointed. That among the 17 Digital Health Clusters in our taxonomy, the focus clusters for enforcing Generative AI solutions are. Health Administration Alternate choices, Scientific Diagnostics and Examine Alternate choices. These 3 clusters indulge in emerged because the head-funded clusters in Q1 2024, capturing 51% of the funding price deployed.
Health Administration Alternate choices, which encompasses scientific workflow and prescriptive analytics solutions for healthcare companies. Emerged because the very very finest-funded cluster in Q1 2024, with $1.1B invested throughout 59 presents. The very finest deal within this cluster became once raised by DecisionRx, a $100M credit facility with Carlyle, which became once furthermore the greatest deal in North The US for Q1 2024. Artisight, a Chicago-primarily based fully enterprise which harnesses synthetic intelligence and IoT sensors to ease scientific workflow. Closed the 2nd greatest deal, a $42M Sequence B round in Jan 2024, which seen the participation of health system and strategic investors, alongside with NVIDIA.
The 2nd perfect funded cluster in Q1 2024 is Scientific Diagnostics. Scientific Diagnostics, which involves ventures providing technologies for scientific imaging, omics-connected prognosis. And other prognosis instruments, attracted $698M throughout 48 presents. Freenome, which develops liquid biopsy checks and a multi-omics platform for early cancer detection, raised the greatest deal on this cluster. This $254M Sequence E round, which became once furthermore the most important deal globally in Q1 2024. Became once led by Roche and seen the participation of many prominent investors. Alongside with Andreessen Horowitz, BrightEdge, ARK Invest, ArrowMark Partners, Artis Ventures, Bain Capital Life Sciences, Quest Diagnostics, and additional.
Fragment of Q1 2024 Funding Set aside for the Top-Funded Digital Health Clusters
Oncology and Psychological Health Emerge as Perfect Funded Therapeutic Areas in Q1 2024
Across therapeutic areas, Oncology and Psychological Health emerged because the very very finest-funded therapeutic areas in Q1 2024. The tip 5 therapeutic areas – Oncology, Psychological Health, Neurology, Diabetes and Cardiovascular Ailments – represented over 70% of total investment in Q1 2024.
The very finest-funded therapeutic explain, Oncology, seen $817M invested. In contrast with Q1 2023, Oncology went from #4 to #1, which is ready to be attributed to the $254M Sequence E round raised by Freenome. The greatest deal globally in Q1 2024. Zephyr AI, which develops infrastructure and machine discovering out algorithms to harness info for therapeutic interventions in oncology and cardiometabolic illnesses, secured $111M in a Sequence A round, which seen the participation of Revolution Enhance, Eli Lilly, Jeff Skoll, EPIQ Capital Community, and others.
Psychological Health fetched vital investment in Q1 2024 and ranked the 2nd-perfect therapeutic explain for the quarter, with a entire of $580M invested. Harbor Health, which affords teleconsultations throughout a vogue of therapeutic areas, alongside with behavioural health and wellness, raised $95.5M to manufacture higher major and Specialty Care, led by Total Catalyst and adopted by Alta Partners and 8VC.
With the broad development in GLP1 medicines as correctly because the introduction of the LillyDirect platform in January by Eli Lilly to present products and services “enlighten-to-client”, Galen Enhance expects to stare a flurry of project within the Obesity / Diet / Wellness areas to toughen sufferers throughout and after their treatment. At the same time, Wellness and Diet solutions for weight reduction might possibly probably perchance honest be negatively affected and wish to shift focal point to the contemporary market stipulations.
Fragment of Q1 2024 Funding Set aside for the World Top Funded Therapeutic Areas
Synthetic Intelligence in Healthcare Takes Heart Stage
In Q1 2024, virtually half of of all presents (49%) had been closed by ventures that employ synthetic intelligence in their solutions, with $2.8B invested throughout 171 presents. Within presents closed by ventures providing AI solutions, 8% of these presents (14 presents) had been closed by ventures that employ Generative AI. Globally, an estimated 4,000 Digital Health ventures are powering their products and services by Synthetic Intelligence, as seen in our prognosis of AI and Generative AI developments in Digital Health.
Healthcare Suppliers Lead Digital Health Partnerships
The first quarter of 2024 seen 480 enterprise partnerships throughout industrial verticals. Following the 2023 model, Hospitals and Health Systems (Healthcare Suppliers) signify virtually a quarter (24%) of all Digital Health partnerships established in Q1 2024. Endeavor-to-enterprise partnerships had been the 2nd most long-established, representing 21% of partnerships. Pharmaceutical, Tech and Insurance corporations signify <10% every of partnerships supplied in Q1 2024.
Fragment of Partnerships by Industry Vertical, Q1 2024
Atmosphere the Stage: The Funding Landscape for Digital Health in 2024
Amidst the international stagnation of Digital Health investments, this comprehensive snapshot sheds gentle on how Digital Health ecosystems are utilizing development worldwide.
Having a learn about ahead, several pivotal factors will impact the trajectory of Digital Health within the upcoming quarter and the latter half of of the twelve months.
- Geopolitical uncertainties, significantly within the Heart East, are poised to continue impacting investment sentiments and market dynamics within the short term.
- Chronic excessive ardour charges, projected unless the discontinue of the twelve months in some regions, might possibly probably perchance honest pose challenges to noteworthy financial development, potentially affecting non-public investments within the Digital Health sector, especially in growing regions such because the Asia Pacific space.
- Strengthening of the general public market, might possibly probably perchance perchance end result in an uptick in public market debuts by the discontinue of the twelve months, potentially furthermore igniting higher funding rounds.
Our subsequent milestone in assessing the health of the international Digital Health ecosystem is our mid-twelve months prognosis, slated for presentation in July 2024, powered by HealthTech Alpha, the premier non-public market platform for Digital Health worldwide. Dwell tuned for insights and updates on the evolving panorama of Digital Health.
