Written by MATTHEW HOLT
As we find ourselves back in 2021, reminiscing about the digital health boom of 2019 and the pandemic-induced surge in the market, it’s clear that the landscape has shifted. Venture money poured into digital health, but the stock prices of public companies like Teladoc began to fall, signaling a downturn for the sector. Despite some companies rebounding, the overall market cap remains low.
Now, as we see a resurgence in VC funding for health tech companies, the question of profitability remains elusive. With only a handful of public digital health unicorns and limited profitability, the future of the sector is uncertain. Mega funding rounds are back, but the sustainability of these investments is questionable in a challenging market.
While the potential for technology to disrupt healthcare is immense, the current state of the digital health market raises concerns about the viability of these new investments. As the stock market booms, the digital health sector struggles to find an exit strategy, leaving investors and stakeholders uncertain about the future.
Categories: Health Tech, Matthew Holt
