Venture forthe consumer directed5/6/2023 Going forward, companies will develop solutions that provide hybrid models of care to bridge the virtual care gap by connecting virtual care teams with hands on care.Īdditionally, as the world looks to cope with the new normal, hybrid models with virtual and in-person care will grow more commonplace as homecare, concierge medicine, traditional providers, and national retailers compete to deliver low-cost high-quality healthcare. While technology is a transformational tool that can and should be leveraged to scale clinician workforces and improve how consumers receive care, technology alone is not always sufficient. #3 Where Tech Meets Touch – Companies and stakeholders will look to reimagine care through hybrid virtual and in-person models In the new year, well-funded players will continue to be positioned as acquirers and turn to M&A to expand their product and service offerings to reach new patient populations or to expand their services, presenting one of the many attractive exit pathways for current and future investments. While the majority of acquirers are still other digital health companies, other players include private equity funds, health systems, health plans, and Big Tech organizations, such as Microsoft’s $19.7B acquisition of Nuance. Notable deals from the past year include the $3B merger of Headspace and Ginger and UnitedHealth Group’s $13B merger with Change Healthcare. 2020 saw significantly less M&A volume with 146 transactions. To date there have been well over 220 notable digital health M&A deals in the sector throughout 2021. Since the $18.5B merger of our portfolio company Livongo with Teladoc, digital health M&A activity has flourished. #2 Reaching New Customers – Solutions will expand offerings through M&A to attract new patient populations or expand value-based services to command larger multiples Over time, we expect solutions that prioritize consumer preferences holistically, such as Transcarent, or deliver highly personalized and precise care like NOCD and Equip Health, will continue to see increased market interest. As digital health companies compete for consumer attention, key players will look to understand consumer’s psychographic profiles, medical history, attitudes and behavior, and even genomic data to deliver a superior consumer experience. In the new year, solutions will be increasingly tailored and personalized to the individual consumer. #1 One Size Does Not Fit All – Companies will prioritize understanding consumer values, attitudes, and opinions to personalize care and drive behavior change Our predictions for the new year include: As a result, digital health has achieved unparalleled adoption from stakeholders across the ecosystem, creating a strong foundation and accelerant for the industry.Īt 7wireVentures, we believe that in 2022, the spotlight will be on consumer-directed technologies and services that are improving the health and care experience for all. More than 680 digital health companies received venture funding through Q3 2021. 2021 funding vastly exceeded 2020 and reached unprecedented highs as new investors flocked to support compelling businesses, and round sizes expanded across all stages. With digital health leading this innovation, investment momentum has accelerated in the market. Throughout the past year, digital health has continued to be a leading tool for providing a safe, reliable way for consumers, providers, and caregivers to access efficacious care. Several regulations were amended such as permitting telehealth care across state lines and the use of novel solutions under the FDA’s emergency use authorization, aiding in improving access to care, curbing the spread of the virus, and keeping individuals out of traditional health system settings. The world approved a new vaccine in record time, for which 484 million doses have been delivered to US adults and children over 5 years old. Yet at the same time, 2021 was a year of unprecedented innovation. A growing number of coronavirus variants, rising provider shortages, clinician burnout, and widespread misinformation have created a new concoction of healthcare complexities for our nation to address. While the pandemic in 2020 presented an unparalleled number of challenges for the US and the world, 2021 further tested the resilience of our healthcare system and front-line workers.
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