Q3 2022 digital health funding: The market isn’t the same as it was

"Given the year’s choppy venture waters and public market correction, investors are holding back from the market, waiting to strike once things stabilize. Q3’s low funding numbers—the lowest quarterly funding total in the past 11 quarters—reflect that sentiment. Yet, even though the market isn’t the same as it was, this quarter has featured some standout digital health activity, including major acquisitions by Amazon and CVS, and Akili’s SPAC close, this year’s first digital health public exit.
As we enter the last 90 days of 2022, a few key themes have emerged throughout Q3: 1) smaller checks across the board, 2) a focus on early-stage funding, 3) reprioritization of technology investments, and 4) an exit market that’s beginning to thaw. Each hints at the type of activity we may see in Q4 and the early days of 2023. In this piece, we’ll recap Q3’s venture funding and public market activity, with an eye toward what these movements signal for the last quarter of the year.
So down and under pressure
With $2.2B raised across 125 deals, Q3 takes the title of the smallest funding quarter in the sector for all of 2022—in fact, it’s the lowest quarter by dollars raised in digital health since Q4 2019 ($2.1B). With Q3 included, 2022 year-to-date funding totals $12.6B across 458 deals, raising doubts that this year’s digital health pot will reach even half of last year’s $29.2B haul..." Lire la suite