2023 Year End Digital Health Global Key Trends Report

FOR THE USE OF THE PURCHASER ONLY | RESALE AND DISTRIBUTION PROHIBITED
Digital Health Ecosystem
2023 Year End Report

Investment Trends • Pipeline Maturity • Category Focus • Clinical Focus
Therapeutic Focus • Noteworthy Deals • Partnerships • Investors
GALEN GROWTH ― 1 ©2024 by Galen Growth - All rights reserved.

Digital Health Ecosystem 2023 Year End Report
Foreword
Throughout 2023, the digital health ecosystem has been marked by consolidation, increased investor scrutiny, investment retreats, health systems seeking
operational efficiency, and big tech placing smart bets on AI, GenAI, and ChatGPT. The Trends Report is certainly a look back. It is also a nautical chart of the
future of a sector undergoing a significant transformation.
The Evolution in Digital Health Investment A Complex Environment

2023 saw a tectonic shift in the digital health landscape as Digital health is central to the transformation of the care ecosystem; however, fewer than
investors abandoned well-publicized highfliers and sought 35% of digital health ventures secured funding in the past 18 months. This indicates an
realistic perspectives. After the boundless enthusiasm overall decline in investor support but a reorientation toward sub-sectors offering less risk.
influenced by COVID-19 in 2021, wallets were tighter in The pace of mergers and acquisitions (M&A) notably slowed, and initial public offerings
2023. The global averages revealed that only 31% of early- (IPOs) and special purpose acquisition companies (SPACs) were few, underscoring
stage ventures, 34% of growth-stage ventures, and 53% of investors retreating, waiting to see what the markets find valuable before reengaging.
late-stage ventures raised funds in the last 18 months. Less than a handful of years ago, there was significant money available to scale up
Digital health is vast. It harnesses the power of software as a companies such as Pear Therapeutics (U.S.), Olive.ai (U.S.), and Babylon (U.K.). Last year,
prescription medical treatment for people with unmet medical these companies fell like dominos. Some investors remain in shock, while others reflect on
needs. It is on the cutting edge of health information the due diligence processes they wish they had pursued.
technologies, driving smart wearables to monitor patient vitals GenAI (Generative AI) has emerged as one of the most exciting applications in the health
and report data to providers. It ensures precision dosing of sphere. Its prominence in biopharma and partnerships among health systems and
medicines. As its category efficacy and safety parameters innovators underscore its status as a central focus in 2023 and beyond. The sector is
morph, digital therapeutics demand the same degree of shifting to address health system pain points – from taking the wash of “big data” found in
clinical commitment, regulatory oversight, and commercial electronic medical records and “scraping it” for clinical data that can be used to improve
savvy as any clinical product influencing life and health patient care – from confirmed diagnoses to better understanding chronic conditions to
outcomes. The Galen Growth Trend Report embraces that tracking for service provided requiring reimbursement codes and importantly providing
entire landscape. healthcare staff summaries of patient status.
(continues on next page)

Digital Health Ecosystem 2023 Year End Report
Foreword, continued
Partnerships and Technological Integration Disrupting Clinical Research

The emergence of AI, ChatGPT, and GenAI has sparked partnerships with The research solutions cluster claimed 20% of the total funding in 2023.
health systems that have been pivotal for digital health ventures despite Biopharma companies seek to “fail early” – to guard parent safety as we
investor belt-tightening. In 2023, announcements of new partnerships advance medicines in the research clinic and to reduce the costs of
surged, with a 3% year-on-year increase in the total number of partnerships creating new medicines. They are putting the idea into action, recognizing
globally. Technological integration remains a cornerstone, with 39% of private that rapidly sorting information can better target drug discovery efforts
digital health ventures leveraging Artificial Intelligence (AI) or Generative AI and validate drug development teams’ trial design recommendations.
technologies to address this sector’s desire for greater efficiencies. Like hospitals seeking to operate at heightened efficiency, the biopharma
Big tech companies have picked up the tempo of digital health investment. drug development sector recognizes that it needs to reach a much larger
Behemoths like Amazon, Google, Microsoft, OpenAI and Google made big pool of patients – with a long-needed emphasis on diversity and broader
plays to partner, acquire and integrate health-specific AI platforms into their geography – conveniently participating in clinical trials and ways to collect
portfolios. and sort added data.
Investors are navigating stormy seas for improved returns in an extended higher cost of capital environment, grappling with a constrained investment value chain,
reduced exits, scarce IPO opportunities, and current valuations. Private equity’s primary responsibility is to their limited partners. Companies once touted as sure
bets collapsing have been a wake-up call. As the digital health sector recalibrates, the Galen Growth 2023 Trends Report remains an in-depth diagnostic of the
past 12 months and a vital telescope to a potentially transformative future.
Acknowledgments. This comprehensive analysis is curated by the Galen Growth specialized research team led by Sara Schmachtenberg, who leads a global group
of analysts and industry experts in Asia, Europe and the United States, and to Lawrence Wurtz, Galen Growth US lead. Also, thanks to Ritesh Patel, senior
partner and digital health lead, FINN Partners, and FINN Partners marketing colleagues, for partnering to bring this report to you.
Gil Bashe Julien de Salaberry

Chair, Global Health and Purpose CEO and Co-Founder
FINN Partners Galen Growth

TL;DR
2023 DIGITAL HEALTH HEADLINES
-37% 34% 1.2x 39% -36%

Global Funding Funding Strength Health Systems AI (incl. GenAI) Digital Health
Investors
All global regions saw a The landscape for Digital Health Systems (incl. Globally, 39% of private The number of investors
reduction in venture Health ventures is private clinics and Digital Health ventures participating in at least one
funding, with levels falling becoming increasingly hospitals) take the largest leverage AI or Generative deal in Digital Health
to $22.0B, 37% YoY below challenging, with many share of new partnerships AI (GenAI) technologies. within a calendar year
2022, as the Digital Health facing critical funding announced with Digital Of these, 43% primarily reached its peak in 2021
sector continues moving shortages. Only 34% of Health ventures in 2023, focus on Medical at 3756 investors. Since
from a phase of inflated growth stage ventures growing 1.2x over 2022. Diagnostics or Patient 2021, there has been a
expectations to a stage across the globe have Globally, Digital Health Solutions. GenAI 36% decrease in these
where it delivers practical secured funding in the ventures disclosed over technology is used by 3% investors, resulting in only
solutions, thus shifting from past 18 months, the 2,400 partnerships in of the ventures within the 2594 unique investors in
hype to reality. Geopolitical typical runway period for a 2023, a YoY increase of Medical Diagnostics 2023. From 2019 to 2023,
and economic uncertainty is raise, signalling a 3% over 2022. Cluster, and 75% of the over 9,100 investors have
a significant factor affecting significant drop in investor ventures use other forms invested in Digital Health
these sectors and is largesse. of AI technology. ventures, with 28%
expected to persist into participating in funding
2024, with a potential rounds in 2023.
reduction in inflation by the
end of the year.

TL;DR
2023 DIGITAL HEALTH ECOSYSTEM
96% -48% 20% 9% 14%

Exit by M&A Regulatory Filings Research Solutions Oncology Europe
Digital Health IPOs For the second year, The Research Solutions While ventures agnostic of Europe overtook Asia
remained elusive in 2023, global regulatory filings cluster captured 20% of disease area captured 35% Pacific for the first time to
with M&A representing a for Digital Health ventures the total funding value of the deal value, ventures become the second-
staggering 96% of all exits declined by 48% YoY. deployed in 2023 to be with products focusing on highest funded global
in Digital Health. Most Despite this, the regional the top-funded Digital Oncology took the top region in Digital Health,
acquisition activity distribution of these filings Health Cluster despite a therapeutic area spot for capturing 14% of the
continues to be has remained steady over YoY decline in funding of funding value in 2023 with global funding value.
represented by venture- the past three years, with 28%. This trend reflects $2.58B invested in over North America retains the
to-venture acquisitions. North American ventures the growing investment in 129+ deals. top spot with 70% of the
accounting for the largest Generative AI for Drug funding value in 2023.
share at 43%. Development to address
Pharma pain points.

Digital Health Year-End 2023: Introduction
Scope
For this full year global report, experts from Galen Growth’s collaborated with the FINN Global Digital Health Group to:
• Chart the complex & fragmented Digital Health landscape

• Uncover emerging market trends
• Identify areas of growth & innovation
• Look beyond funding to explore what’s next in this fast-paced sector
The year-end summary reviews the 2023 Digital Health venture funding in the context of ecosystem developments throughout the year
and highlights trends to expect in 2024. It also addresses themes that hold great potential to benefit from digital applications.
Want to get into the detail of your preferred regional ecosystem? The most comprehensive regional deep-dives for the full year 2023
will be published by Galen Growth at the end of January. To be notified and/or to access the reports, subscribe to
HealthTechAlpha.com.
Since 2017, Galen Growth’s research & analysis has set the standard for unbiased Digital Health reporting, with strict analytical criteria
applied to ensure consistency and accuracy. Corporates, investors and ventures rely on Galen Growth’s research to help make clear-
sighted decisions based on industry-best data.
The world’s
This report is leading Digital Scan the QR
powered by data Health private code to access
from HealthTech market data the data behind
Alpha. and intel this report
platform
Digital Health Year-End 2023: Introduction
Data & Methodology
Source of Data
Unless otherwise stated, all data are exclusively sourced from Galen Growth’s proprietary database
HealthTech AlphaTM – the global leading Digital Health data, market intel and analytics on-demand platform.
Presently, HealthTech Alpha tracks more than 680M data points and has a coverage exceeding 14,500 Digital
Health ventures across the globe. For more information visit https://www.healthtechalpha.com/
Data Scope
• The analysis considers ventures and Digital Health products (e.g. apps) across the globe, with selected analysis focusing on six key regions for Digital Health:
North America, Asia Pacific, the Middle East, Western Europe, South America (key markets), and Africa.
• The following scope of analysis criteria must be met in order to be included in this report:
• The venture was incorporated after 2002
• The venture has been qualified as being Digital Health i.a.w. Galen Growth’s rigorous taxonomy - see page 75
• The venture’s geographic location is determined by its initial country of incorporation
• Venture funding includes all stages up to but excluding the exit event
• Subsidiaries of large corporations (e.g. Microsoft) are excluded
• The product is developed by a Digital Health venture and is a Digital Health product. Other non-digital products or devices are excluded.
Methodology
Analytics presented in this report are Galen Growth’s proprietary algorithms and are explained on page 76

9 Digital Health Headlines
19 Ecosystem Insights
27 Investment Insights
43 Cluster Focus
Contents 49 Therapeutic Focus
53 What’s Next?
57 Noteworthy
73 Key Information
77 About Galen Growth
78 About FINN Partners

Digital Health Headlines

2023 Headlines
Global Digital Health Funding Remains Low
The Digital Health sector continues to move from a phase of inflated expectations to one focused on delivering practical solutions, thus
shifting from hype to reality. Venture funding levels have fallen 37% below those seen in 2022, driven by the venture capital industry facing
a crisis due to a lack of exit transactions. Geopolitical instability continues to be a significant factor affecting this sector which is expected to
persist well into 2024.
$38.18B
▼ -37%
$34.6B
$21.57B $21.73B
$22.0B
$15.35B
$13.30B
$11.03B
$7.04B $7.26B
$6.07B
$5.19B $5.23B
$3.46B $3.08B $2.84B
$2.55B
$74M $717M $179M$663M $540M$1.28B $438M$1.17B $171M$533M
2019 2020 2021 2022 2023
South America and Africa Middle East Europe APAC North America

$22.0B ▼ -37% YoY

In 2023 of funding was deployed across
1457 DEALS ▼ -26% YoY

Globally

2023 Headlines
Funding is Down Across the Board
The highest-funded therapeutic areas in 2023 all experienced a funding downturn compared to 2022. Oncology-focused ventures took the
top spot, despite a YoY funding decrease of 47%. The same downward trend is seen across the top 6 highest-funded clusters, with Medical
Diagnostics and Telemedicine seeing the biggest percentual losses.
Change in venture funding for the highest-funded

Change in venture funding for the Top 5 highest-funded Therapeutic Areas
Digital Health Clusters
Cardiovascular YoY Change,

Oncology Neurology Mental Health Diseases Womens Health Digital Health Cluster
2022 to 2023
(-47%) (-28%) (-48%) (-57%) (-54%)
Research Solutions -28% ↓
-$729M
Health Management Solutions -25% ↓
-$1.47B
-$1.61B
-$1.74B
-$1.80B Medical Diagnostics -51% ↓
-$2.32B
-$2.92B -$2.99B
Patient Solutions -35% ↓
-$3.85B
-$4.29B Telemedicine -48% ↓
Online Marketplace -7% ↓

change 2021 to 2022 change 2022 to 2023 ( ) % change from 2023 to 2024

2023 Headlines
59%
Funding Strength is 45% 47%
53% 51%
48% 49%
reaching critical levels

43% 43%
39%
Historical share of 32%
29%
for many ventures Growth Stage Digital
Health ventures that
have raised funding
in the previous 18
Global Funding Strength has reached critically months, by quarter
low levels for many Digital Health ventures Q1 2023 H1 2023 Q3 2023 FY 2023
that have not raised funding in 18-months, North America APAC Europe
the typical runway period for a raise.
With global averages revealing only 31% of

Early Stage ventures, 34% of Growth Stage
ventures, and 53% of Late Stage ventures 90%
have raised funds in the last 18 months, the 78%
remainder of the ecosystem is left to cut costs
or rethink their business model. Global average
57%
percentage of 53%
With valuations still seeking a bottom, many ventures that have 39%
34%
ventures have sought alternative funding raised funding, 31%
25%
by funding interval 20%
sources, which have been limited in supply.
and current funding
Since H1 2023, the share of Growth-Stage stage
ventures raising funds in the past 18 months % raised in the last 12 months % raised in the last 18 months % raised in the last 36 months
in Europe has remained on a similar level to
North America, while Asia Pacific is falling
further behind. Early Stage and Series A Growth Stage Late Stage
Note: Includes only ventures with publicly disclosed funding events

2023 Headlines
Healthcare Provider
Health Systems 19% 21% Startup

Tech
address pain points 2023 Venture
Partnership 3% Pharmaceutical
2,400+
with Digital Health Share, by 5%
New Partnerships Academia / Institutes
industry vertical in 2023
Partnerships 6% 19% Insurance
7% Association / Non-Profit Group

Globally, Digital Health ventures disclosed 10% 10% Medical Device
over 2,400 partnerships in 2023, a YoY
Others
increase of 3%.
Healthcare Providers (not limited to clinics,

hospitals and health systems) take the
Partnerships announced between Health Systems and Digital Health ventures
largest share (21%) of new partnerships
announced with Digital Health ventures,
growing in number by 1.2x over 2022. 510
416 21% 24%

Global Region % of Partnerships 44%
4%
North America 69 % 49%
240
11%
Asia Pacific 20 % 17%
152 39%
Europe 9% 56% 11%
106 12%
41% 51%
Middle East 2% 48% 61%
52% 59% Health Management Solutions Medical Diagnostics
South America <1 %
Population Health Management Patient Solutions
Africa <1 % 2019 2020 2021 2022 2023
Telemedicine Remote Devices
AI Ventures non-AI ventures total partnerships Other clusters

2023 Headlines
Number of Disclosed Partnerships between Digital Health ventures and Tech companies
Big Tech continues 240
building partnerships 182

43%
in Digital Health, with 104

48%
a focus on GenAI 61
88
41%
38%
57%
44% 52%
Many Digital Health ventures are looking 59% 62%
56%
towards partnerships or using GenAI
services from Tech companies to apply 2019 2020 2021 2022 2023
GenAI to their products. The number of AI Ventures non-AI ventures total partnerships
partnerships between Digital Health
ventures and Tech companies grew 2.2x
over the 2 years from 2021 to 2023. Noteworthy Partnerships between Digital Health ventures and Tech companies focused on GenAI
Several challenges remain for GenAI in
healthcare. Among them, GenAI models
used in healthcare must comply with a Microsoft Amazon (incl. AWS) OpenAI Google
variety of regulations, such as those
governing patient privacy and data security.
This can be a complex and time-consuming
process.
In addition, the rules and regulations for the
use of GenAI are still very fluid and will be
region-dependent.

2023 Headlines
The Use of Generative AI remains low, but strong in critical clusters
There are more than 3,800 private Digital Health ventures globally that use AI or Generative AI (GenAI, a subset of AI) technology, with
43% of the ventures having a primary focus on Medical Diagnostics (22%) or Patient Solutions (17%). Across all Digital Health ventures
in Medical Diagnostics, 3% use GenAI technology and an additional 75% use other forms of AI technology.
Global proportion of ventures using AI or GenAI and Distribution,

Distribution of ventures in Selected Clusters, by use of AI
by Digital Health Cluster
2%
Medical Diagnostics Patient Solutions
Other Clusters, 19%
22%
34%
Population Health Mgmt, 6% 3%
37% Research Solutions, 8% 75% 65%
14,000+ 1%
Digital Health Wellness, 12%
Ventures
61% Across 6 Regions
Health Mgmt Solutions, 15%
Health Management Solutions
Patient Solutions, 17%

34%
63%
Ventures using Gen AI Medical
Diagnostics, 22% 3%
Ventures using other AI
Other Ventures
Distribution of AI Ventures AI (excl. GenAI) GenAI non-AI

2023 Headlines
Investor Exits are low in 2023 and driven by M&A
In 2023, the IPO market for Digital Health remained nearly stagnant, with just 5 IPOs and 2 SPACs, while the number of acquisitions fell by
19% YoY, albeit still significantly higher than the 2020 figures. A large share of the acquisition activity continues to be venture-to-venture
acquisitions, and we should expect to see some of the previous IPOs delisting in 2024.
Volume of Investor Exits (M&A, IPO, SPAC) Acquisition Share of Digital Health ventures, by vertical
18 100%
48 80%
5
10 60%
5 2
5
34 40%
22 223
192 20%
171
135
102
0%
2019 2020 2021 2022 2023
Others Medical Devices

2019 2020 2021 2022 2023
Insurance Healthcare Provider
M&A IPO SPAC Pharma/Biotech/Genomics Ventures

2023 Headlines
Ventures Growing by Acquisition in 2023
Venture-to-venture acquisition still dominates the M&A activity in Digital Health, and the trend is expected to extend into 2024 as
point-solution fatigue grows across the industry. Financial stress for younger ventures will drive down acquisition prices to give more
mature ventures a chance to expand.
Ventures with the highest number of acquisitions of other ventures in 2023
# of Digital Health
Digital Health Total # of Digital Health Category of
Acquirer Acquisitions Acquired Ventures Date
Cluster Acquisitions Acquired Venture
in 2023
Rehaboo 5 / 2023 Wellness Apps

Prescriptive
EvokAI 3 4 Head Instrur 5 / 2023 Remote Monitor. Dev.
Analytics
Neurocarrier 6 / 2023 Diagnosis Tools
Valence Discovery 3 / 2023 Drug Discovery

Recursion Drug Discovery 2 2
Cyclica 5 / 2023 Drug Discovery
Twentyeight SimpleHealth 4 / 2023 Consumer Marketplace

Teleconsultation 2 2
Health 4 / 2023 On-Demand Delivery
Simple Contacts
Software Athelas 10 / 2023 Physician / Clinic

Commure 2 7
Provider RX.Health 11 / 2023 Hospital

Ecosystem Insights
Global 2023 Year End

Ecosystem Insights
Global Ecosystem Development
There are more than 10,200 private, and active ventures across the globe. Over the past 5 years, the global Digital Health ecosystem has
been expanding at a 5-year CAGR of 4% with 38% of Digital Health ventures founded in North America, making it the largest regional
ecosystem.
Proportion of ventures by Region of First Incorporation Cumulative volume of Private, Active Ventures, 2019-2023
2% 10,173 10,229
9,891 70%
9,232
10000
4%
6% 8,361
60%
8000
50%
38%
40%
6000
26% 30%
15%
4000
20%
12%
9% 7% 10%
24% 4%
2000
0%
0 -10%
North America APAC Europe 2019 2020 2021 2022 2023
Middle East South America Africa No. of Ventures 5-Year CAGR

Ecosystem Insights
New Partnership announcements declined over 2023
While deployed venture capital continued to plummet throughout 2023, the number of partnerships announced by Digital Health ventures
increased by 3% YoY. Ventures with solutions in Health Management Solutions disclosed the largest share (18%) of partnerships, which
corresponds to Health Systems and other healthcare providers being the most active industry vertical for partnering in Digital Health (ref.
slide 13).
Venture Partnership Distribution in 2023,
Growth of Partnerships in Digital Health, by Half-Year and Region by Digital Health Cluster
2
4
115 18% 18%
121 3
2 331 95
250 4%
142 238
3 5% 16%
140
2 65
94 136 9%
58 60
93 80 114 913 900
9% 11%
783
24 685 10%
35 96 549
68 408 419 432
182 223
Health Management Solutions Medical Diagnostics
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Patient Solutions Population Health Management
2019 2020 2021 2022 2023 Telemedicine Research Solutions
Wellness Health InsurTech
North America APAC Europe S. America & Africa
Others

Ecosystem Insights
Number of Regulatory Filings, by year and region
Regulatory Filings 47
fall short in 2023

45 189 84
239 204
2
234
45 1
226
In 2023, more than 430 regulatory filings 173 255 35
106
were approved/accepted for Digital
Health ventures across the globe (not 102 444 104
including FDA registrations), down 48% 281 324
195 186
from 2022
The share of regulatory filings by region 2019 2020 2021 2022 2023
has remained nearly constant over the
North America Europe APAC Middle East South America Africa
past 3 years, with ventures founded in
North America capturing the largest
share (43%)
Share of Global Regulatory Filings, by Product Type (2023)
Half of the ventures with regulatory
filings have medical device (Hardware) Others
products, whereas 28% develop Mobile 3%
Applications only
Software
19%
Hardware
Mobile
50%
Application
28%

Ecosystem Insights
Regulatory Filings by Digital Health Cluster (2023)
2023
Clinical Evidence Medical Diagnostics
28% 31% Remote Devices
Patient Solutions
31% of ventures with regulatory filings in
2023 are primarily in the Medical Telemedicine
Diagnostics cluster. 8%
13%
The Research Solutions cluster has the 9%
11% Others
highest share of ventures with an Evidence
Signal (ES) greater than 40, indicating that
the venture has run clinical trials, received
regulatory filings, or has more than 4 peer-
reviewed publications*.
Share of ventures with Evidence Signal > 40, by Digital Health Cluster
# of Regulatory % of Ventures
Global Region
Filings in 2023 with ES > 40
48%
North America 186 25% 44% 42%
Asia Pacific 104 21% 34% 33%
Europe 106 30%
Middle East 35 24% 20% 19% 18%
South America 0 9%
Africa 1 9%
Medical Research Remote Devices Clinical Trials Patient Solutions Wellness Telemedicine Health
Diagnostics Solutions Management
* Refer to Galen Growth’s Clinical Strength in Digital Health report for Solutions
methodology on evaluating Clinical Evidence in Digital Health

Ecosystem Insights
Patients, Providers and Payors Rely on Products with Proof Points
Digital Health solutions are increasingly required to provide evidence or “proof points” demonstrating their effectiveness and benefits to the
intended user. HealthTech Alpha has catalogued over 16,000 products (mobile apps, software, devices, and more) that have been developed
by private ventures that are focused primarily on Digital Health. 40% of these products were developed by ventures that have proven
Clinical Strength (Evidence Signal (ES)> 40).
Share of products developed by Digital Health ventures Share of products* developed by ventures with ES>40 in each Digital Health
with ES> 40, by product type cluster, by product type
13% 15% 11% 11%

6%
47% Digital Health Apps 37%
20%
36% 17%
38%
15%
39%
32% Digital Health Software
67%
82%
72%
46% 48%
24%
Digital Health Devices /
95% Hardware Medical Patient Solutions Health Remote Devices Wellness Telemedicine
Diagnostics Management
Solutions
Mobile Apps Software (incl. Omics Software) Devices (Hardware)
* Only the 3 most frequent product types for Digital Health are shown here. Other types are available on HealthTech Alpha

Ecosystem Insights
Galen Growth’s HealthTech 250 - The most innovative new ventures
In December, Galen Growth announced its annual HealthTech 250 – The Most Promising Early Stage Digital Health Ventures in 2023. This
year’s ventures span all regions driving Digital Health innovation – N. and S. America, Asia Pacific, Europe, the Middle East and Africa.
Covering the entire patient journey, they offer solutions from preventive measures to reimbursement, represented through 39 out of the 58
Digital Health categories (see slide 43).
The annual HealthTech 250 analysis is a

result of Galen Growth’s data-driven
computation combined with the renowned
expertise of Galen Growth’s research team.
Read the full blog and download all 250

ventures from:
https://www.galengrowth.com/2023-
healthtech-250/

Access all the data

behind this report
and conduct your
own analysis
Get started

Investment Insights

2023
Funding Distribution
Europe
Europe overtook Asia Pacific for the first ↓ (-41%)
North America
time to become the second-highest funded
↓ (-29%)
global region in Digital Health, capturing
14% of the global funding value. North Middle East
America retains the top spot with 70% of ↓ (-55%)
the funding value in 2023.
Asia Pacific
Africa ↓ (-53%)
↓ (-17%)
Total Funding
Region South America
(YoY % change)
↓ (-81%)
North America $15.4B (-29%) ↓
Europe $3.1B (-41%) ↓
APAC $2.8B (-53%) ↓
Middle East $533M (-55%) ↓
Africa $114M (-17%) ↓
South America $56M (-81%) ⇊

Funding Distribution
0 >$10 B

2023 Funding Falls to a 5-Year Low
With high hopes that venture funding in Digital Health had stabilized after 2022, the decline continued throughout 2023 to reach an annual
5-year low. A closer look at the year-on-year development of funding value by funding stages reveals that funding in all stages failed to
achieve the 2022 value by at least 20%.
Global Venture Funding Value , Year-on-Year Annual Venture Funding Value by Funding Round
$22.6B
$58.3B
$13.6B
$12.5B
$10.5B
$10.2B
$8.3B
$34.6B
$7.9B
$7.4B
$7.2B
$32.0B
$7.1B
$6.9B
$6.4B
$6.3B
$6.1B
$5.2B
$4.7B
$4.2B
$4.1B
$3.8B
$3.6B
$22.7B $22.0B
$2.7B
$2.4B
$2.1B
$2.1B
$1.8B
2019 2020 2021 2022 2023 Early Stage Series A Series B Series C Series D & Beyond
2019 2020 2021 2022 2023

Digital Health Funding History
The quarter-on-quarter trend for global funding shows that venture funding was low, but relatively stable across 2023. Ongoing geopolitical
and economic uncertainty along with the closure of venture funds for Digital Health (ex. OpenView) does not indicate that venture funding in
2024 will improve in the short term.
Cumulative Venture Capital Funding (2019 – 2023) Share of Investment Volume (2019 – 2023)
<1% <1% 3% 4% 2%
4% 3% 3% 2%
$16.1B 3%
$15.6B
$14.9B
23% 21% 21%
27% 23%
$13.1B
$11.6B
$10.8B
17%
21% 17%
22%
$9.8B
23%
$8.5B
$7.0B
$6.5B
$6.5B
$6.2B
$6.0B
$6.0B
$5.5B
$5.4B
$5.3B
$5.3B
$5.1B
$4.5B
58%
50% 53% 53%
44%
2019 2020 2021 2022 2023

Q1 Q2 Q3 Q4
North America APAC Europe Middle East South America and Africa
2019 2020 2021 2022 2023

QoQ Digital Health Funding History
The number of venture investment deals in Q4 2024 dipped to the lowest count since the beginning of 2019, while the average deal value
has increased by 20% in this timeframe. Despite the lack of venture funding, the average deal size has remained stable over 2023.
18000 700
644 633
16000
589 597 600
579 585
567
14000
541 552
525
502 506
488
500
12000
483
452
416
10000
399 400
358
342 341
8000
300
$16.8M
$14.0M
6000
200
4000
$10.8B
$11.6B
$16.1B
$14.9B
$15.6B
$13.1B
100
$6.5B
$6.5B
$4.5B
$5.3B
$6.0B
$5.5B
$9.8B
$8.5B
$6.0B
$7.0B
$5.4B
$6.2B
$5.3B
$5.1B
2000
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 2020 2021 2022 2023
Funding Amount ($) No. of Deals
Average Deal Value ($)
QoQ Digital Health Regional Funding History
While North America experienced a continuous QoQ decline in Digital Health venture funding value in 2023, funding in Europe crept
upward across the first 3 quarters of the year, although the cumulative 2023 funding remained 41% lower than in 2022. Funding in Asia
Pacific surged in Q4, which is typical for the region.
$11.0B
$9.5B
$9.4B
$8.9B
$8.2B
$5.5B
$4.2B
$4.2B
$3.9B
$3.6B
$3.4B
$3.4B
$3.2B
$3.1B
$3.0B
$2.6B
$2.1B
$2.1B
$2.0B
$1.9B
$1.7B
$1.5B
$1.4B
$981M
$1.3B
$930M
$853M
$1.2B
$840M
$831M
$768M
$1.1B
$686M
$514M
$497M
$479M
$431M
$421M
$360M
$283M
$281M
$261M
$214M
$206M
$198M
$194M
$192M
$180M
$168M
$120M
$96M
$77M
$71M
$60M
$52M
$50M
$50M
$41M
$30M
$28M
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2022 2023
South America and Africa Middle East Europe APAC North America

Digital Health Funding Across Regions, 2019-2023
North America Asia Pacific Europe
Cumulative Venture Capital Investment

2019 – 2023
$110.1B $32.2B $21.6B
Funding by Year, $40.0B $15.0B $10.0B
2019 –2023 $8.0B

$30.0B
$10.0B
$6.0B
$20.0B
$4.0B
$5.0B
$10.0B
$2.0B
$0M $0M $0M

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Cumulative Venture Capital Deal Volume

2019 – 2023
5158 Deals 2036 Deals 2342 Deals
Deal Volume by Year, 1500 500 600

2019 – 2023 400 500
1000 400
300
300
200
500 200
100 100
0 0 0
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
$40M $30M $20M

Average Deal Size,
2019 – 2023 $30M $15M
$20M
$20M $10M
$10M
$10M $5M
$0M $0M $0M

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Digital Health Funding Across Regions, 2019-2023
Middle East South America Africa
Cumulative Venture Capital Investment

2019 – 2023
$4.4B $1.0B $376M
$1.5B $500M $150M
Funding by Year,
2019 –2023 v
$400M
$1.0B $300M $100M
$200M
$500M $50M
$100M
$0M $0M $0M

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Cumulative Venture Capital Deal Volume

2019 – 2023
323 Deals 112 Deals 128 Deals
50
Deal Volume by Year, 100 60
40
2019 – 2023 80
30 40
60
20
40
10 20
20
0
0 2019 2020 2021 2022 2023 0
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
$30M $20M $10M

Average Deal Size,
2019 – 2023 $15M $8M
$20M
$6M
$10M
$4M
$10M
$5M $2M
$0M $0M $0M
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023

Large Funding Events
With strong geopolitical and economic headwinds, and the lack of North America continues to dominate the Mega Deals across the
exits impacting investor appetite, Mega Deal (≥$100M) volume globe, with a 79% share of these deals in 2023.
remained low in 2023.
Historical Volume of Mega Deals Regional Distribution of Mega Deals
1
3
60 60%
15
56%
50 50%
29
48%
40
No. of Mega Deals
40%
39%
36% 36%
30 30%
3 1
17 2
8
117
20 20%
11
1 6
4 4
10 58
12 48
10%
34
19
0 0%
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Q1 Q2 Q3 Q4 Share of Mega Deal funding vs Global funding North America APAC Europe Middle East South America and Africa

Global Digital Health Venture Exit History
The past decade has seen a total of 1,320 Digital Health venture exit transactions worldwide. Venture exit deals increased over the years
since 2013 and peaked in 2021, with a total of 289 exit deals reported in 2021 alone. Comparing the peak in 2021 against exit deals within
2023, exit volume has decreased by 38%. In 2023, a total of 178 exits were reported (171 M&As, 5 IPOs and 2 SPAC).
350 100% -38% 100%

289
82%
Exits
80%
300
65% 66%
60%
50%
250 40%
39%
178
20%
Exits
YoY Change
No. of Exits
200
11% 10%
4%
0%
150 -14%
-20%
-28%
100 -40%
-60%
50
-80%
0 -100%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
M&A IPO SPAC YoY Change

MOIC: Large M&A Exits, 2022-2023 YTD, Global
Considering the total sum of venture capital invested versus acquisition value for selected ventures acquired in 2022 and 2023, the median
indicative Multiple on Invested Capital (MOIC) of the ventures listed below is 4.1. Ventures that went public before their acquisition are not
included in this analysis.
$500M 12.0
11.7
10.0
$400M
8.0
Investment Amount
$300M
MOIC
6.0
$200M 4.7 4.5

4.0
3.5
3.0
$100M 2.3
2.0
$0M 0.0
Tictrac Revela Artemis Health Breezometer
BreezoMeter ()‫בריזומיטר‬ Haystack Oncology MiroBio
Sum of VC Invested Acquisition Amount MOIC
GALEN GROWTH ― 37 Note: MOIC is represented as M&A deal value / total venture capital investment ©2024 by Galen Growth - All rights reserved.
Only ventures with acquisition deal value greater than or equal to $50M are shown
MOIC: IPO and SPAC, 2022-2023 YTD, Global
The chart below features selected ventures which publicly listed via IPO and SPAC in 2022 and 2023. For these ventures, the MOIC is
represented by the ratio of Market Capitalization at IPO or SPAC to Total Venture Capital Investment.
$3.0B 20.0
18.5
15.0
$2.0B 13.0
Investment Amount
MOIC
10.2 10.0
7.7
$1.0B
5.0
3.9
2.7 2.5 2.4 2.3
$0M 0.0
Aclarion Bruush Microba Life Coreline Soft Profusa Acrivon Lunit (루닛) Prenetics Neumora
Sciences (코어라인소프트) Therapeutics Therapeutics
Sum of VC Invested Market Capitalization at IPO/SPAC MOIC
GALEN GROWTH ― 38 Note: MOIC represented as Market Capitalization at IPO or SPAC / total venture capital investment. ©2024 by Galen Growth - All rights reserved.
Global Digital Health Investor Participation
Globally, more than 12,500 investors have participated in a least one funding deal in Digital Health within the past 15 years. Since 2019,
more than 5,200 investors have participated in at least two funding deals, while 717 have participated in 10 or more deals.
Global Analysis of Digital Health Investors Global Deal Participation (2019 – 2023)
Number of unique investors by cumulative investment count
Digital Health: 12,500+ investors

2+ deals 5222
5+ deals 1695
10+ deals 717
25+ deals 183
5 or more deals (all-time):

1,600+ investors (14%) 50+ deals 54
Most active: 18 or more deals (all-time)

300+ investors (3%) 100+ deals 12

Global Digital Health Investor Participation
The count of investors that have participated in at least 1 deal in Digital Health in a calendar year reached more than 3,756 investors in
2021, but 2023 saw many investors turning their backs to Digital Health, with a decrease in investor count of 28% from 2022, leaving only
2594 investors participating in 1457 deals. With a total of over 9,100 investors from 2019 – 2023, 28% of these investors participated in
rounds in 2023, and only 4% of those investors have participated in rounds in each of the past 5 years.
Recurring Investor Participation (2019 – 2023)

Count of Investor Participation by Year
Overlap indicates investors participating in multiple time periods
3756 5,929 total investors

3599 2021 – 2022 in 2 years from 2021
to 2022
2712
2497 2594
1.8 1.8
1,273
1.7 Investors
1.7 801 507 2023
Investors Investors
1.4
153
2019 – 2020 Investors
2,594 Investors in 2023
4,201 total investors in 2 years from
2019 2020 2021 2022 2023 2019 to 2020
# of investors participating in a funding round
Average # of investments per investor 367 investors participated in each year from 2019 - 2023

Investor Participation by Digital Health Cluster
Across the Digital Health clusters, the highest share (14%) of investors have invested in Medical Diagnostics, a highly-regulated space with
clear paths to reimbursement. Health Management Systems and Patient Solutions tied for second place in attracting investors, with each
representing 12% of the total investor share.
Investor Volume Share (2019 – 2023) by Digital Health Cluster Investment Rounds over time for top 3 Digital Health Clusters
1000
Medical Diagnostics
800
14% 14% Patient Solutions
5% 600
Wellness
12%
5% Telemedicine
400
Research Solutions
5%
Population Health Management
200
12% Health InsurTech
7%
Online Marketplace
8% 0
9% Remote Devices 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023
9%
Others Medical Diagnostics Patient Solutions Health Management Solutions
Early Growth Late Exit

Investor Participation by Therapeutic Area
Within the disease-specific investment landscape, Mental Health saw the highest participation of investors (9%), followed by Oncology (8%)
and Neurology (6%). Each of the top 3 disease areas witnessed a steep decline in the number of investment rounds from 2022 to 2023.
Investor Volume Share (2019 – 2023) by Therapeutic Area Annual Investment Volume for Top 3 Therapeutic Areas
Mental Health,
9% 1000
Oncology, 8% 800
Neurology, 6% 600
Cardiovascular 400
Others, 52%
Diseases, 6%
Diabetes, 5% 200
Nutrition, 4%
0
Pediatrics, 3%
2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023
Gastroenterology, 3% Oncology Mental Health Neurology
Gynaecology, 2%
Respiratory Diseases, 2% Early Growth Late Exit

Cluster Focus

Cluster Focus
Galen Growth’s Digital Health Taxonomy
Health Management Health Services Medical Medical Online Health Online

Health InsurTech
Solutions Search Diagnostics Education Communities Marketplace
EHR / PHR Healthcare Navigation Health Claim Management Diagnosis Tools Consumer Education Other HCP Networks Consumer Marketplace
Hospital Medical Concierge Health Insurance Medical Imaging HCP Education Patient Health Forums On-demand Lab Tests
Pharmacy Medical Tourism Medical Payments Omics Related Diagnosis Health Information Physician Networks Online Pharmacy
Platform
Physician / Clinic Triage Professional Marketplace
Prescriptive Analytics
Patient Population Health Research

Remote Devices Clinical Trials Telemedicine Veterinarian
Solutions Management Solutions
Digital Therapeutics Care Coordination Assistive Care Bioinformatics Decentralized Clinical Trials Teleconsultation Animal Health Forums
Disease Management Corporate Health Remote Diagnostic Devices Drug Discovery Clinical Trial Matching Telepathology Animal Imaging
Health / Symptom Checker Home Healthcare Remote Monitoring Devices Omics Related Research Data Collection Tools Teleradiology Animal Monitoring
Medication Management Integrated Solutions Telesurgery Omics Related Veterinary
Televeterinary
Wellness Safety & Security Healthcare Logistics Others
Omics Related Applications Counterfeit Tracking Transportation Management Contamination Management

Smart Equipment Cybersecurity On-demand Delivery HCP Job Board
Cluster
Wearables Pharmacovigilance Healthcare Marketing
Wellness Apps Social Enterprise Category
Wellness Information Platform Software Provider

Cluster Focus
Venture Funding in Key Digital Health Clusters
The Research Solutions and Health Management Solutions clusters captured 33% of the total funding value deployed in 2023. Boosted by
Mega Deals, the top 5 funded clusters represented 62% of the total value of invested capital in 2023.
Top Funded Digital Health Clusters (2023) Digital Health Cluster Total Funding Rank in Largest Deal in
by Investment Value Share in 2023 2022 2023
Phenomic AI
1 Research Solutions $4.36B #1
$509M (Strategic)
20%
Health Management Aledade
38% 2 $2.91B #3
Solutions $260M (Series F)
13%
HeartFlow
Medical Diagnostics $2.49B #2
3 $215M (Series F)
11%
7%
11% Monogram Health
4 Patient Solutions $2.44B #4
$375M (Series C)
Research Solutions Health Management Solutions

Distalmotion
Medical Diagnostics Patient Solutions 5 Telemedicine $1.55B #6
$150M (Series F)
Telemedicine Other Digital Health Clusters

Cluster Focus
2023 Top 10 Digital Health Clusters by Venture Funding Value
In 2022 and 2023, Research Solutions stood out by securing the most significant portion of funding, despite ranking only 9th in global
venture volume. Health Management Solutions, the largest cluster, also attracted the highest investment volume, although it ranked second
in total venture capital.
$6.0B
$5.0B
2023 Venture Capital Investment
Research
Solutions
$4.0B
Health
$3.0B Management
Patient Medical Solutions
Solutions Diagnostics
$2.0B
Online Marketplace
Population Health Telemedicine
Health Wellness InsurTech
$1.0B Remote 45 Size of bubble indicates
Management Devices deals # of funding deals
$0M
0 500 1000 1500 2000
Global Venture Volume

Cluster Focus
Top Ventures in Key Clusters
Health Management Solutions, accounting for 14% of private Digital Health ventures worldwide, is the cluster with the highest number of
ventures, closely followed by Patient Solutions and Telemedicine at 11% each.
14% of Ventures 11% of Ventures 11% of Ventures 10% of Ventures 10% of Ventures
Note: Ventures may be classified in more than 1 cluster

Cluster Focus
Global Venture Distribution by Clusters
Funding across the largest 4 Digital Health Clusters is dominated by venture founded in North America, while the distribution of venture
volume is more balanced between the top 3 global regions. Mostly driven by Israel, the Middle East delivers 10% of the venture volume in
the Medical Diagnostics cluster.
Share of Funding for Top Funded Digital Health Clusters in 2023 by

Share of Cluster Venture Volume by Region
Region
Research Solutions Health Management Solutions

Health Management Solutions 43% 24% 19% 6% 6% 3% 1% 3% <1% 1.4%
8%
15%
12%
Patient Solutions 42% 21% 28% 6% 1%
12%
2%
69%
79%
Telemedicine 42% 28% 16% 4% 6% 4%
Patient Solutions Medical Diagnostics

<1%
Wellness 34% 24% 31% 7% 2% <1%
11% 9%
3% 4%
16%
Medical Diagnostics 32% 28% 28% 10% 1% 57%
1% 16%
86%
North America APAC Europe Middle East South America Africa
North America APAC Europe Middle East South America Africa
Note: Venture distribution shown by Primary Cluster

Therapeutic Focus

Therapeutic Focus
Venture Funding in Key Therapeutic Areas
Driven largely by a $509M investment in Toronto-founded venture Phenomic.AI, Oncology maintained its top position as the most invested
therapeutic area in 2023. Neurology captured the second place, up from #5 in 2023.
Top Funded Therapeutic Areas (2023) Therapeutic Areas Total Funding Rank in Largest Deal
in 2023 2022 in 2023
Phenomic AI
1 Oncology $2.58B #1
$509M (Strategic)
34% 35% Neumora Therapeutics

2 Neurology $1.92B #5
$474M (Series C)
Headway
3 Mental Health $1.75B #2
$125M (Series C)
4%
5% 9%
6% 7%
Cardiovascular HeartFlow
4 Diseases
$1.38B #3
$215M (Series F)
Disease Agnostic Oncology
Neurology Mental Health
Kindbody
Cardiovascular Diseases Womens Health 5 Women’s Health $1.23B #4
$100M (Series E)
Other Therapeutic Areas
GALEN GROWTH ― 50 Note: A venture can have solutions in multiple therapeutic areas ©2024 by Galen Growth - All rights reserved.
Therapeutic Focus
Top 10 Therapeutic Areas by Venture Funding Value, 2019 – 2023
Funding in Oncology ventures dropped by 47% to $2.6B in 2023 compared to $4.9B invested in 2022. Neurology funding values beat the
2019 levels by 19%, and the funding for Mental Health ended 2023 on par with the funding levels from 2019 at $1.7B.
$8.0B
$6.0B Oncology
Womens Health
Mental Health
Cardiovascular Diseases
$4.0B Neurology
Diabetes
Preventive Health
Infectious Diseases
$2.0B Nutrition
Gastroenterology
$0M
2018 2019 2020 2021 2022 2023 2024
Therapeutic Focus
2023 Top 10 Therapeutic Areas by Venture Funding Value
Mental Health remains the therapeutic area with the largest number of ventures, and it captured the most funding deals in 2023. With $2.5B
of disclosed funding value in 2023, ventures with solutions for Oncology captured the top spot for funding and realized an average deal size
of $23M, compared to $12M for Mental Health ventures.
$3.5B
$3.0B
2023 Venture Capital Investment
Oncology
$2.5B
$2.0B
Neurology
Mental Health
$1.5B Cardiovascular
Diseases Womens
Diabetes Health
$1.0B
Preventive
Nephrology Health
Wellness Nutrition
$500M
50 deals
Size of bubble indicates
# of 2023 funding deals
$0M
0 200 400 600 800 1000 1200
Global Venture Volume
What’s Next?

What’s Next in 2024?
Regulations Continue to Progress for Digital Therapeutics
First year of Reimbursement Regulatory

Selected Countries
reimbursement for DTx Pathway Agency
As France joins the list of countries with
a Digital Therapeutics (DTx) 2020 Japan Yes PMDA
reimbursement policy, the promise of
Digital Therapeutics is on a slow march 2020 Germany Yes DiGA
forward.
2021 Belgium Yes mHealth Belgium
In the short term, the focus on DTx has
been replaced by more urgent health 2023 France Yes PECAN
system pain points of efficiency and a
lack of personnel. Nonetheless, with the Other EU countries Limited MDR
cost of healthcare skyrocketing and UK Limited NICE / MHRA
reaching well above 10% of GDP in
many countries, the future of healthcare USA Limited FDA
is on an unavoidable path with S. Korea Limited MFDS
digitalization, and the maturing of
Australia Limited TGA
products, ventures, and regulation must
and will unavoidably continue. Canada No Health Canada
China No NMPA
India No CDSCO

What’s Next in 2024?
So What’s Next for Digital Health in 2024?
2023’s economic uncertainty and continued geopolitical turmoil have led Digital Health to an inflexion point from hype to reality and
evolving into a more mature ecosystem enabled by numerous factors:
-33% YoY decline of unique investors in 2023 indicates that the 67% of growth stage ventures across the globe have not raised funding in
opportunistic investors who quickly entered the Digital Health sector during the past 18 months, which will inevitably lead to further bankruptcy and
the pandemic have exited just as swiftly. The scarcity of Initial Public acquisition activity, as exemplified by the high-profile shutdowns of Pear
Offerings and a slump in Mergers & Acquisitions activity are stifling returns, Therapeutics (US), Olive.ai (US), and Babylon (UK) in 2023. Despite substantial
thereby preventing the reinvestment of capital into new funding rounds, funding and lofty valuations, these entities faltered due to unrealistic growth
which will profoundly impact the 2024 funding levels. assumptions, setting a precedent likely to be echoed by similar shutdowns in
2024.
21% of partnerships with Digital Health ventures were captured by 4% of the 170+ exit transactions in Digital Health in 2023 were IPOs or
health systems and healthcare providers, focusing on Digital Health SPAC transactions, reaching a 5-year low. With the potential of declining
innovation to boost capacity and enhance productivity amid rising demand, interest rates in 2024, anticipation will build for a surge of IPOs that have been
labour shortages, and labour costs. As health systems increasingly adopt postponed in 2023 due to unfavorable market conditions. Despite investors
artificial intelligence solutions, Digital Health ventures must prioritise being eager to realise returns, the fear of unprofitable IPOs and unstable
interoperability and integration into larger platform solutions to compete with geopolitical conditions will likely dampen any wave of new market entries
large IT players already embedded into the health systems. across the globe.
The Digital Health ecosystem stands at a critical juncture as it enters 2024, recalibrating its trajectory amid funding challenges, notable
setbacks, and a much-needed focused emphasis on addressing core healthcare challenges. The industry's resilience and adaptability will be
tested as it navigates this transition from hype to pragmatic innovation, setting the stage for a dynamic and potentially transformative future.

Access all the data

behind this report
and conduct your
own analysis
Get started

Noteworthy

Digital Health 2023: Noteworthy
Noteworthy Deals North America
Venture Lead Investors HQ Country Category Stage Date Deal Value ($)
Drug Discovery, Omics

Phenomic AI Boehringer Ingelheim Canada Strategic 11 / 2023 509M
Related Research
Neumora Bioinformatics, Omics

Abu Dhabi Growth Fund United States Series C 1 / 2023 474M
Therapeutics Related Research
Memorial Hermann Health System,

Monogram
Cigna Ventures, United States Disease Management Series C 1 / 2023 375M
Health
Humana, and more
Zipline undisclosed United States On-demand Delivery Series F 5 / 2023 330M
MAPS Capital,
Generate NVentures, Drug Discovery, Omics
United States Series C 9 / 2023 273M
Biomedicines Pictet Alternative Advisors, Related Research
and more

Noteworthy Exits (M&A) North America
M&A
Venture Acquirer HQ Country Category Date Deal Value ($)
Haystack Oncology Quest Diagnostics United States Omics Related Diagnosis 5 / 2023 300M
Corporate Health,
Dialogue Sun Life Canada 10 / 2023 182M
Teleconsultation
Cloudbreak Health GTCR United States Teleconsultation 11 / 2023 180M
Omics Related Applications,

Revela Oddity United States 4 / 2023 76M
Omics Related Research
Valence Discovery Recursion Canada Drug Discovery 3 / 2023 47.5M

Noteworthy Exits (SPAC & IPO) North America
IPO
Opening Amount Raised Market Change in

Venture HQ Country Category Date
Price* At IPO (In USD) Capitalization Share Price %**
Bioinformatics,
Neumora
United States Omics Related 9 / 2023 $16.50 USD $250M $2.39B USD 3%
Therapeutics
Research
Bioinformatics,
Turnstone Biologics United States 7 / 2023 $11.40 USD $80M $57.5M USD -75%
Drug Discovery
Consumer
FORME United States Marketplace, 4 / 2023 $8.35 USD $12M $13.3M USD -89%
Wellness Apps
Bullfrog AI United States Drug Discovery 2 / 2023 $5.30 USD $8.4M $17.6M USD -41%
SPAC (NONE in 2023)
* Opening share prices at IPO ** Change in share price: obtained from opening share prices as of 29 Dec 2023
GALEN GROWTH ― 60 Note: Market Capitalization is as of 9 Jan 2024 ©2024 by Galen Growth - All rights reserved.
Noteworthy Deals Asia Pacific
Consumer Marketplace,
PharmEasy TPG, ADQ India On-demand Lab Tests, Series G 10 / 2023 420M
Online Pharmacy
XtalPi
Lilly China Drug Discovery Strategic 5 / 2023 250M
(晶泰科技)
Remote Monitoring Private

Saluda Medical Wellington Management Australia 4 / 2023 150M
Devices Equity
Consumer Marketplace,
EHR / PHR, Hospital,
Halodoc Astra International Indonesia Series D 7 / 2023 100M
Online Pharmacy,
Teleconsultation
Carmignac,
Mamaearth Fidelity International, India Consumer Marketplace Pre-IPO 10 / 2023 91M
Goldman Sachs, and more

Noteworthy Exits (M&A) Asia Pacific
M&A
Volpara Health Lunit New Zealand Medical Imaging 12 / 2023 193M
GP2U Telehealth My Emergency Doctor Australia Teleconsultation 6 / 2023 2M
MyHealth1st HealthShare Australia Medical Concierge 4 / 2023 0.8M
Disease Management,
PREVENT
Sumitomo Life Insurance Japan Prescriptive Analytics, Remote 12 / 2023 undisclosed
(PREVENT)
Monitoring Devices
MiRTel Medical Net

Japan Omics Related Diagnosis 11 / 2023 undisclosed
(ミルテル) (メディカルネット)

Noteworthy Exits (SPAC & IPO) Asia Pacific
IPO
Opening Amount Raised Market Change in

Venture HQ Country Category Date
Price* At IPO (In USD) Capitalization Share Price %**
HCP Education,
Yaoshibang Pharmacy,
China 6 / 2023 $23.05 HKD $38.4 M $4.53B HKD -64%
(药师帮) Professional
Marketplace
SPAC
Disease Management,
ETAO Cloud
Mountain Crest Acquisition Corp. III China Hospital, Prescriptive 2 / 2023 301M
(医道云)
Analytics, Teleconsultation
Coreline Soft Shinhan 7th Special Purpose

South Korea Medical Imaging 9 / 2023 1.3M
(코어라인소프트) Acquisition Company
* Opening share prices at IPO ** Change in share price: obtained from opening share prices as of 29 Dec 2023
GALEN GROWTH ― 63 Note: Market Capitalization is as of 9 Jan 2024 ©2024 by Galen Growth - All rights reserved.
Noteworthy Deals Europe
eGym Affinity Partners Germany Smart Equipment Series G 7 / 2023 225M
Softbank, Ally Bridge Group,

CMR Surgical United Kingdom Hospital, Prescriptive Analytics Series E 9 / 2023 165M
Escala Capital, and more
Distalmotion Revival Healthcare Capital Switzerland Telesurgery Series F 4 / 2023 150M
Patient21 Pitango Venture Capital Germany Medical Concierge Series D 5 / 2023 108M
Corporate Health,
Urban Sports Club Verdane Capital Germany Series D 12 / 2023 106M
Wellness Apps

Noteworthy Exits (M&A & IPO) Europe
M&A
Diamond Whites Impress United Kingdom On-demand Delivery 2 / 2023 32M
Health / Symptom Checker,

Babylon Health eMed United Kingdom 6 / 2023 0.6M
Teleconsultation, Triage
aidhere Sidekick Health Germany Digital Therapeutics 10 / 2023 undisclosed
Bioinformatics,
Medexprim BC Platforms France 12 / 2023 undisclosed
Medical Imaging
7Mind Gymondo Germany Wellness Apps 12 / 2023 undisclosed
IPO (NONE in 2023)

Noteworthy Deals Middle East
Augmedics CPMG Israel Medical Imaging Series D 6 / 2023 83M
Diagnosis Tools, Health

K Health undisclosed Israel Information Platform, Series E1 7 / 2023 59M
Teleconsultation
Ibex Medical
83North Israel Medical Imaging Series C 9 / 2023 55M
Analytics
Healthy.io undisclosed Israel Diagnosis Tools Series D 5 / 2023 50M
Remote Monitoring
TytoCare Insight Partners Israel Series D2 8 / 2023 49M
Devices, Teleconsultation

Noteworthy Exits (M&A & IPO) Middle East
M&A
Arkan United Rology Saudi Arabia Teleradiology 6 / 2023 undisclosed
DiA Imaging Analysis Philips Israel Medical Imaging 5 / 2023 undisclosed
Nala.ai Integrative Health Saudi Arabia Diagnosis Tools 5 / 2023 undisclosed
Nafas Labayh United Arab Emirates Wellness Apps 3 / 2023 undisclosed
Smileneo makeO United Arab Emirates Medical Concierge 2 / 2023 undisclosed
IPO (NONE in 2023)

Noteworthy Deals South America
Redpoint eventures,
Sami Brazil Teleconsultation Series B 6 / 2023 18M
Mundi Ventures
Physician / Clinic,
HealthAtom Kayyak Ventures Chile Series A 1 / 2023 10M
Teleconsultation
Genial Care General Catalyst Brazil Care Coordination Seed 1 / 2023 10M
Extendeal undisclosed Argentina Pharmacy Seed 11 / 2023 7.5M
Corporate Health, Health

Insurance, Healthcare
Fiibo Headline Brazil Seed 8 / 2023 3.5M
Navigation, Wellness
Apps

Noteworthy Deals Africa
EHR / PHR,
Helium Health AXA IM Alts Nigeria Series B 6 / 2023 30M
Medical Payments
Kasha Knife Capital Kenya Consumer Marketplace Series B 7 / 2023 21M
MyDawa Alta Semper Kenya Consumer Marketplace Series B 7 / 2023 20M
Global Ventures,
Yodawy Egypt Online Pharmacy Series B1 2 / 2023 16M
Delivery Hero Ventures
Maisha Meds USAID Kenya Pharmacy Grant 10 / 2023 5.3M

Noteworthy Partnerships
Corporate / Organization Venture HQ Country Date Primary Category
Lilly Fauna Bio United States 12 / 2023 Drug Discovery
Merck Owkin France 12 / 2023 Prescriptive Analytics
MetLife Nayya United States 10 / 2023 Health Claim Management
Cigna Virgin Pulse United States 8 / 2023 Corporate Health
Bayer Mahana Therapeutics United States 8 / 2023 Digital Therapeutics

Most Active Partners in Digital Health
Total No. of Digital

No. of Digital Health
Corporate Partner Partner Type Health Partnerships Recent Partnership Venture Category
Partnerships in 2023
since 2013
Healthcare
Mayo Clinic 70 19 Intelligent Scopes Medical Imaging
Provider
AstraZeneca Pharmaceutical 62 13 Saama Bioinformatics
Remote Monitoring
Roche Pharmaceutical 54 6 Somatix
Devices
Humana Insurance 47 3 Talkiatry Teleconsultation
Cigna Insurance 43 5 Headway Health Insurance

Most Active Investors in Digital Health in 2023
Cumulative # of
# of Investments Total value of
Investor Type Digital Health Deals Latest Participated Investment Date
in 2023 latest deal
since 2013
Andreessen
Venture Capital 115 19 knownwell 11 / 2023 20M
Horowitz
General Catalyst Venture Capital 142 18 Layer Health 11 / 2023 4M
Seismic
GV Venture Capital 115 14 12 / 2023 121M
Therapeutic
F-Prime Capital Venture Capital 100 11 Eleos Health 11 / 2023 40M
Khosla Ventures Venture Capital 157 9 Vivodyne 12 / 2023 38M

Key Information
Cluster FocusFocus
Therapeutic
What’s Next?

Key Information
Key Information
SCOPE OF REPORT KEY TERMS AND DEFINITIONS

BASE CURRENCY USD
This report covers Digital Health ventures with an incorporation date after 2002. The data
is valid as of 02 Jan 2024. EARLY STAGE All deals up to and including Series A stage
GROWTH STAGE All deals at Series B & C stage

Digital Health is defined as the intersection between healthcare and technology, and is
LATE STAGE All deals at Series D & Beyond stage
also referred to as HealthTech. Digital Health does not include Biotech (protein research
or pharmaceuticals), MedDev (devices that are mechanical and electronic in nature), EXIT IPO, SPAC and M&A deals
neuro-stimulates, opioids and minimal-invasive instruments. We recommend reviewing
our taxonomy on the next page for further details. HTA HealthTech Alpha
DATA SOURCING AND TRACKING IMPORTANT INFORMATION

Galen Growth tracks a comprehensive inventory of key data points ranging from company This report is provided solely for informational purposes and was prepared in good faith on
demographics, funding and valuation to in-market capabilities on a continuously growing the basis of public information available at the time of publication without independent
and curated list of HealthTech ventures drawn from global markets. Data is collated from verification. Numbers will be updated from to time to reflect information identified after the
primary research, public domain sources (press releases, news, public fillings), proprietary event.
analytics and from its unique network.
Galen Growth does not guarantee or warrant the reliability or completeness of the data nor
The information is: its usefulness in achieving any particular purposes.
• Disclosed and undisclosed by nature Galen Growth shall not be liable for any loss, damage, cost or expense incurred by reason
• Continuously updated with the latest data because of any persons use or reliance on this report.
• Curated from both direct and indirect verified sources This report is a proprietary aggregation of publicly available and undisclosed data and shall
• Augmented with our proprietary algorithms not be forwarded or reproduced without the prior written consent of Galen Growth.
Each HealthTech Alpha Index and Score is calculated using proprietary algorithms and
data points drawn from our carefully curated HealthTech Alpha database. We recommend RESEARCH INQUIRIES
reviewing the Digital Health Analytics page for further information. For more information about data, research and Galen Growth’s proprietary algorithm
contact: research@galengrowth.com for more information.

Digital Health Clusters and Categories

With 68 Digital Health categories across 18 clusters, Galen Growth’s comprehensive
taxonomy streamlines venture discovery and analysis.
Health Management Solutions Health Services Search Health InsurTech
Medical Diagnostics Medical Education Online Health Communities
Online Marketplace Patient Solutions Population Health Management
Remote Devices Research Solutions Clinical Trials
The Galen Growth Telemedicine Veterinarian Wellness
Digital Health Safety & Security Healthcare Logistics Others
Taxonomy
Mapping across the value chain
Further classification of target users and value propositions
Value Chain
Awareness & Acquisition Prevention Treatment
Diagnosis Adherence Reimbursement Clinical Workflow
Non-Clinical Workflow Research Supply / Distribution
Consumers Patients HCPs Payers Corporates
Target Users

Digital Health Analytics

The Alpha Score is Galen Growth’s proprietary 360°
Venture Maturity assessment that aggregates four
distinct and independent Alpha Indices
The Team Signal Evaluates the strength of
Team Strength
Momentum index: evaluates the present the venture’s leadership team.
Signal
performance and fitness of the venture relative
to its ecosystem peers.
Alpha Score
NLP
Money index: quantifies the financial strength and
well-being of the venture based on its financial Data Cleansing
history and investor quality.
Market index: evaluates the health of the sector
category and sub-category in which a startup
competes. The Partnership Signal
Evaluates the strength of
Innovation index: evaluates the degree to which Millions of the venture’s partnership
the venture is solving healthcare pain points.
Data Points Partnership
network.
Signal
Venture
Similarity Score
The Venture Similarity Score indicates the Structured
commonality of existing data points between Data Lakes
Data
startups within the HealthTech Alpha database.
The Evidence Signal is an indicator of the
amount of evidence that a venture has
accumulated to confirm the benefit of its
solution to the target customer.
The Venture Valuation estimates the current Evidence
and next funding stage valuation of a venture Venture Valuation Signal
based on mark-to-market calibration.
Global Digital Health Ecosystem Coverage

About Our unmatched coverage of the world’s most
Galen Growth innovative Digital Health ventures means more

innovation choice and better decisions.
Our unique combination of Specialist Team with Decades of Experience

data, analytics, specialist team With decades of experience, our team of analysts,
and Digital Health network, decision makers & industry experts extend your
enables our clients to team with specialist insights and know how.
outperform their competition Our US, Asia and Europe offices serve our clients
worldwide.
Contact Us
Lawrence Wurtz (USA)
Tailored Innovation Solutions
lawrence.wurtz@galengrowth.com
Whatever stage you are at in your innovation
Julien de Salaberry (Europe)
julien.desalaberry@galengrowth.com
journey, we have a world class solution to
Ana Kollcaku (Asia Pacific)
enable you to succeed. Every solution
ana.kollcaku@galengrowth.com leverages our unrivalled Digital Health data.

More than an integrated marketing agency,
About we are a bold collective of communications

advocates, stewarding brands, protecting
FINN Partners reputations, pioneering industries, influencing
public policy and leveraging data and analytics
to shape the most important conversations of
our day.
Founded in 2011, FINN is one
of the world’s fastest growing We are smart, passionate people on a mission
to make a difference in the world.
independent agencies, serving
clients through a powerful
combination of hands-on
partnerships, highly specialized,
deep-rooted expertise and a
33 15+
offices industries
values-driven culture that
3 1,400+
champions collaboration and
innovation, and strives to create
a more equitable world.
continents people

2023 Year End Digital Health Global Key Trends Report

Uploaded by

Copyright:

Available Formats

2023 Year End Digital Health Global Key Trends Report

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2023 Year End Digital Health Global Key Trends Report

Uploaded by

Copyright:

Available Formats

FOR THE USE OF THE PURCHASER ONLY | RESALE AND DISTRIBUTION PROHIBITED

Digital Health Ecosystem

2023 Year End Report

GALEN GROWTH ― 1 ©2024 by Galen Growth - All rights reserved.

Digital Health Ecosystem 2023 Year End Report

The Evolution in Digital Health Investment A Complex Environment

GALEN GROWTH ― 2 ©2024 by Galen Growth - All rights reserved.

Digital Health Ecosystem 2023 Year End Report

Partnerships and Technological Integration Disrupting Clinical Research

Gil Bashe Julien de Salaberry

GALEN GROWTH ― 3 ©2024 by Galen Growth - All rights reserved.

-37% 34% 1.2x 39% -36%

GALEN GROWTH ― 4 ©2024 by Galen Growth - All rights reserved.

96% -48% 20% 9% 14%

GALEN GROWTH ― 5 ©2024 by Galen Growth - All rights reserved.

Digital Health Year-End 2023: Introduction

• Chart the complex & fragmented Digital Health landscape

Digital Health Year-End 2023: Introduction

Data & Methodology

GALEN GROWTH ― 7 ©2024 by Galen Growth - All rights reserved.

9 Digital Health Headlines

Contents 49 Therapeutic Focus

77 About Galen Growth

78 About FINN Partners

GALEN GROWTH ― 8 ©2024 by Galen Growth - All rights reserved.

Digital Health Headlines

GALEN GROWTH ― 9 ©2024 by Galen Growth - All rights reserved.

Global Digital Health Funding Remains Low

2019 2020 2021 2022 2023

GALEN GROWTH ― 10 ©2024 by Galen Growth - All rights reserved.

$22.0B ▼ -37% YoY

1457 DEALS ▼ -26% YoY

GALEN GROWTH ― 11 ©2024 by Galen Growth - All rights reserved.

Funding is Down Across the Board

Change in venture funding for the highest-funded

Cardiovascular YoY Change,

Research Solutions -28% ↓

Online Marketplace -7% ↓

GALEN GROWTH ― 12 ©2024 by Galen Growth - All rights reserved.

reaching critical levels

With global averages revealing only 31% of

Note: Includes only ventures with publicly disclosed funding events

GALEN GROWTH ― 13 ©2024 by Galen Growth - All rights reserved.

Health Systems 19% 21% Startup

7% Association / Non-Profit Group

Healthcare Providers (not limited to clinics,

416 21% 24%

GALEN GROWTH ― 14 ©2024 by Galen Growth - All rights reserved.

Big Tech continues 240

building partnerships 182

in Digital Health, with 104

GALEN GROWTH ― 15 ©2024 by Galen Growth - All rights reserved.

The Use of Generative AI remains low, but strong in critical clusters

Global proportion of ventures using AI or GenAI and Distribution,

Patient Solutions, 17%

GALEN GROWTH ― 16 ©2024 by Galen Growth - All rights reserved.

Investor Exits are low in 2023 and driven by M&A

Others Medical Devices

GALEN GROWTH ― 17 ©2024 by Galen Growth - All rights reserved.

Ventures Growing by Acquisition in 2023