In familiar adverbs, digital health companies continue to break financing records, raising a total of $14.7 billion In the first half of 2021.
Since the beginning of the Covid-19 pandemic, more and more investors have turned their attention to digital health companies. So far, this trend does not seem to abate.
According to a report released by Rock Health today, in the first half of this year, the company raised a total of US$14.7 billion through 372 transactions. In contrast, they raised $14.6 billion in 2020-a record at the time-and only $7.7 billion in 2019.
Large-scale financing rounds led by private equity firms and growth funds drove record numbers, accounting for more than half of the total.Tiger Global Capital Not shy about investing in digital health plans, And led 14 rounds of financing so far this year, including large investments in billing platform Cedar and digital physical therapy startup Hinge Health.
The largest rounds of financing so far this year include:
More companies plan to exit on a large scale, but returns fall
Although more and more companies continue to line up for large-scale exits, the situation looks different from earlier this year. So far this year, a total of 11 companies have gone public, and another 11 companies are preparing to go public through mergers with special purpose acquisition companies (SPACs). However, recently listed digital health companies have not performed as well as their predecessors.
According to the report, among the 18 digital health companies listed on the New York Stock Exchange and Nasdaq since the beginning of 2020, their average stock returns were lower than the Nasdaq level in the second quarter. At the same time, those stocks listed before the pandemic generally performed at the same level or better than the Nasdaq average.
Considering more inspections by regulatory agencies and a reduction in the number of listing targets, the enthusiasm for SPACs may also weaken. According to Rock Health statistics, 39 SPACs are actively looking for healthcare goals and 47 high-capital digital health startups, which means that “sharp elbows may appear” as they compete for the company’s attention.
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