Key Takeaways
Our latest analysis of today’s healthtech innovation market finds positive trends even as the overenthusiasm and overvaluations of 2021 continue to weigh on the sector.
728 Total healthtech deals in H1 2024
Deal volume in Q2 reached a record high, but growth in dollars raised is slow.
2% Of healthtech deals have been mega-deals
The slump in $100M+ deals continues.
79 VC-backed healthtech companies exited
Fallout from 2021 has made exits harder to come by.
Seed rounds fuel record-high deal volume
After falling back following the frenzy of 2021, the large proportion of early rounds is carrying healthtech deal volumes to new highs in 2024.
Despite ongoing valuation adjustments, there appears to be an appetite among investors to rebuild and reevaluate their portfolios.
Source: PitchBook Data, Inc., SVB proprietary data and SVB analysis.
Mega-deal dilution has leveled off
Deals of $100M or more represent 2% of deal volume and 34% of total dollars, matching 2023 levels.
Of the companies that raised mega-deals in 2021, more have gone out of business than have gone public.
Exits are harder to come by
Exits are down across the board, and publicly traded healthtech stocks are underperforming.
With M&A activity slowing, investors will need to be willing to return to 10- or 15-year horizons for healthtech investments.
Source: PitchBook Data, Inc., SVB proprietary data and SVB analysis.
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