• Health Tech

4 Crucial Considerations to Bear in Mind When Investing in Digital Health by 2023

February 08, 2023

Despite the current market instability and financial difficulties, investors remain hopeful that digital health dollars in 2023 will still be comparable to 2020, with expectations of $15 – 25 billion.

There are four digital health investment trends that you should be aware of:

1. In 2023, the most telling signs of a digital health company’s success will be its ROI and clinical validation for its technology platform.
2. Investors have predicted that in 2023, seed-stage investments will depreciate by approximately 20%, while Series A and B investments could experience a drop of between 20% to 40%.
3. Investors suggest that digital health startups specializing in provider and clinician burnout have the highest potential for success. The increased opportunity will benefit those working on modifying reimbursement frameworks and interoperability.
4. Often, investors can choose which clinical spaces are most promising for startups. A recent survey revealed that Oncology is their top pick, with 51% of respondents voting in favor, followed by Mental Health at 37.3%, Neurology at 27.5%, and Primary Care rounding out the list at 23.5%. Investing in these areas can bring immense rewards!

Investors must consider these four crucial points as the digital health industry expands and evolves. Considering all these factors when investing in this field in 2023, you can ensure your money is well spent. 

With a thorough understanding of digital health and its implications on consumers and businesses alike, investors will be better equipped to decide which opportunities are better suited. Investing in digital health holds great promise – but only if done with due diligence!

Overall, the survey from GSR Ventures highlights the positive outlook for digital health investments in 2023. 

Investors emphasize the importance of financial returns and clinical validation in evaluating the success of digital health companies. 

While valuations may experience some adjustments, opportunities exist for startups addressing provider burnout, reimbursement models, and interoperability challenges.

Furthermore, specific clinical areas such as oncology, mental health, neurology, and primary care are expected to attract significant investment.