The Future of Healthtech 2021
Key takeaways
01
Investments hit record $34B across 1,040 global deals, with alternative care receiving 38% of total funding
The global pandemic has elevated the demand for virtual services. Founders are shaping the future of health services and investors are eager to invest in disruptive and scalable tech.
02
Mixed public market performance, but exit window remains wide open
HealthTech’s exit window remained healthy despite the pandemic with a record 12 venture-backed IPOs this year. However, post-IPO performance remains largely negative, showing the public market’s unwillingness to pay premiums stemming from overvaluations on the private side.
03
Mental health funding hit a record $2.4B in 2021
Mental health investments indicate the growing need and acceptance of virtual/hybrid mental health solutions. Keep a close watch on this market for investment opportunities and technologies to support employees and families.
Global healthtech funding
The first three quarters of 2021 closed with an astounding $34B invested globally across 1,040 deals.
Following a record-breaking year in 2020, investment volume and pace reached new records in the first three quarters of 2021 alone. Investors are seeing high-value returns making it one of the hottest investment areas in healthcare.
32 new unicorns
Thirty-two companies became unicorns this year, surpassing 2020’s full-year total by 256%, with alternative care leading the way.
There are more unicorns than ever in healthtech. With ample funding, companies are continuing to remain private, building enterprise value ahead of a higher-valued IPOs.
Alternative care and provider operations lead the way
Alternative care raised $11B and provider operations raised $8B.
Provider operations saw record investment, as healthcare organizations rapidly digitized their practices to adopt virtual/hybrid alternative care solutions. Keep an eye on the exits market for both areas.
Female founders receive 20% of 2021 investment
Female-founded companies collected $5.9B in VC investment this year, an 168% increase from 2020.
The future healthtech industry is poised for more female-founded company formation and representation by women. The talent pool of women continues to expand, while investors continue to take steps to close the gender gap in their firms.
VC firms make massive investments in healthtech
Investors are deploying capital into healthtech companies at record-breaking volume and pace, leading to soaring valuations.
Investors are capitalizing on the opportunity to advance their portfolios and expand point solution capabilities within their portfolios.
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Written and researched by SVB experts
Our deep relationships with top life science and healthcare entrepreneurs and investors inform our insights and give us a vantage point unlike any other bank.
