In 2021, the digital health industry saw an influx of funding, surpassing 2020’s full-year total after the second quarter.
So what are we in for next year? Will digital health funding continue at the same rapid pace in 2022? MobiHealthNews asked digital health leaders and executives their predictions about funding for next year. Be sure to check out their thoughts on the expansion of virtual care, funding in 2021 and what’s ahead for the space in 2022.
Varsha Rao, CEO of Nurx
“I expect that it will, because 2021 has demonstrated that using technology to provide and improve care isn’t a temporary trend and will only grow as patients and stakeholders continue to see the benefits. Huge opportunities still exist for making the system more efficient and improving patient experience and outcomes, and investors recognize that.”
Amihai Neiderman, CEO and cofounder of Nym Health
“All eyes will be on the recent IPOs and SPACs to see how they perform in public markets. If stock prices keep rising, and multiples are justified, then this will likely fuel more exits and capital at all stages.”
William Chan, CEO and cofounder of Iodine Software
“No doubt funding will continue at the same pace in 2022, but the better question is where. I expect we’ll see some consolidation in the market, as provider organizations look to digital health providers that can apply their core technologies to more use cases.
“That means investors will start flowing more capital to digital health leaders so they have the resources to acquire others that complement their platforms, building more complete solutions.”
Michelle Davey, CEO and cofounder of Wheel
“I wouldn’t be surprised. We’re still catching up to the investment that digital health needs to fix our broken healthcare system. But the industry has matured over the last two years — we’re starting to see bigger and more late-stage deals.
“That’s why I’m keeping my eye on consolidation and companies building more cohesive ‘one-stop-shop’ models.”
Carolyn Witte, CEO and cofounder of Tia
“Funding will likely continue around the same pace throughout 2022, but mostly for those solving very big problems. One of the areas where I expect a lot of investment to flow is to digital health companies that smartly address health equity and deliver better care for vulnerable populations.”
Cassie Choi, chief operating officer and cofounder of Pair Team
“COVID-19 shined a spotlight on how important access to high-quality care is and inspired a new generation of technologists and clinicians to become entrepreneurs. This kicked off a strong positive feedback loop between builders and funding, and that will keep accelerating in 2022.”
Kyle Armbrester, CEO of Signify Health
“Looking back at the history of digital health funding, it’s hard to spot any decline of major significance. COVID-19 certainly provided some fuel for the digital health fire, and I do not believe the flame will taper out. The $65 billion for broadband expansion in the recently passed federal infrastructure bill should facilitate greater remote/digital access to underserved populations and open even more opportunities to extend care in and around the home.
“Digital health companies that deliver value outcomes and keep the patient experience top of mind will play an important role in strengthening our healthcare infrastructure for everyone.”