The Future of Healthtech
2023
Key takeaways
$8.2B
Total healthtech investment year-to-date
Following a steep drop in 2022, we’ve seen flat quarter-over-quarter (QoQ) healthtech investment the last three quarters.
78%
Of deals have undisclosed valuations
As flat and down rounds become more common, valuations are increasingly going unreported.
0
IPOs from VC-backed healthtechs
Healthtech stocks have begun to show resiliency in 2023. Still, the IPO window remains closed.
Deals and dollars show signs of stabilization
Healthtech investment and deal pace is relatively flat this year, following the steep drop in 2022. This pullback in healthtech investment may have reached its bottom, as we appear to be entering a new environment marked by fewer deals, smaller check sizes and a slower investment pace.
The adjustment put downward pressure on valuations, marked by a dramatic increase in flat or down rounds. Though painful for many, the reset in valuations paves the way for a more sustainable future.
Source: PitchBook, SVB proprietary data and SVB analysis
2) IPO data includes venture-backed IPOs with a minimum $25M proceeds raised.
3) De-SPACs graphed by date of announcement of intent to de-SPAC.
Source: S&P Capital IQ, PitchBook, SVB proprietary data and SVB analysis.
IPO window remains frozen, yet M&A activity thaws
Despite zero IPO activity in 2023, the healthtech public markets showed resiliency this year, with the first positive public performance trends in over a year. Similarly, the M&A market has started to show signs of life with rising deal volume.
We anticipate increased M&A activity in H2’23 and H1’24 as companies run out of cash and may need to raise at a lower valuation or sell.
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Written and researched by SVB experts
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