Key takeaways

Dramatic shifts over the past nine months indicate that a market rebalancing is underway, with investments and valuations lowering from 2021’s boom. However, the healthcare industry is more resilient during periods of downturn and remains ripe for innovation.


Investments are down but rebalanced from 2021 with shifts to earlier stages

US, EU and UK healthtech investments hit $23 billion in the first three quarters of 2022, with an especially sharp drop in Q3 2022. Investments have shifted to earlier stages where valuations aren’t as inflated.


IPO window shut, but M&A on the rise

Inflation, global geopolitical factors and interest rate hikes all created a tumultuous public market and shut healthtech’s IPO window. However, private VC-backed M&A are up 16% versus the first three quarters of 2021.


Mental health valuations and deal sizes up despite broader downturn

Mental healthcare demand soared this year, fueled by rising mental health conditions and growing provider shortages.