HealthTech: Thrust into the Spotlight Amid the Pandemic
Key takeaways
01
HealthTech has raised $12B+ through Q3 2020
The first three quarters of 2020 have already set an annual record for healthtech funding.
02
Alternative care leaps ahead during the COVID-19 pandemic
In 2020, alternative care has accounted for 38% ($4B+) of venture-backed healthtech funding.
03
16% of the US may be adversely affected by mental health in 2021
Mental health has seen increased investor activity, with startups projected to raise $1B+ in 2020.
HealthTech funding to reach $16B+ in 2020
Over the last four years, private venture-backed healthtech companies have seen $1B+ in global* financings quarter over quarter. This year, US companies have raised a staggering 82% of global funding; Europe and China contribute 10% and 8%, respectively.
Alternative care has raised $4B+ in 2020
Alternative care companies pave the way in terms of subsector funding, surpassing the next highest-funded subsector (provider operations) by an incredible $2.6B over the last three years.
Virtual and hybrid care take center stage
Historically, alternative care companies have skewed toward providing virtual care or in-person care; however, due to wide-spread adoption of telehealth during the COVID-19 pandemic, in-person companies have adopted a virtual care component, creating a hybrid care model.
Mental health funding may cross $1B+ in 2020
Mental health funding is on an upward trend this year, with the most active investors favoring later-stage mental health companies. 1H 2020’s unprecedented funding can be attributed to three $90M+ deals.
SVB’s strong HealthTech index performance due to virtual care
In 2020, the SVB Global HealthTech Index (+102%) has recovered faster than the DJIA (-4%), S&P 500 (+2%) and Nasdaq (+14%). It is also ahead of FAMGA (+42%), whose companies have been relatively resilient to the pandemic.
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Written and researched by SVB experts
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