It’s been several months since the financial ramifications of the global pandemic began to cascade across virtually every industry in the U.S. Some were more affected than others, but few were left untouched and experienced some meaningful level of disruption.
In March, few anticipated as lengthy an outbreak as it is regrettably turning out to be. However, while the date of our full recovery may yet be unknown, Q2 held some promising investment trends for the healthcare world at large.
A recent report from CB Insights indicates that investments in healthcare firms remain robust. We’ll break down a few of the most prominent trends below.
Though mergers and acquisitions among healthcare companies fell to a five-year low last quarter and early-stage deal share continued its decline, the climate for startup and intermediate-stage companies is far more promising.
According to the report, there were close to 1,300 equity investments in healthcare companies during Q2 of this year, totaling $18 billion.
More specifically, tech-intensive startups are garnering a more significant portion of investments than others. It comes as little surprise that telehealth, in particular, saw a considerable boost in investment—there were 154 telehealth-centric deals, which is a 23% increase from Q1. Similarly, AI-centric firms grew by 14%, or $1.1 billion.
Shifting focus over to women’s health ventures, this space saw a considerable decline in investments, down 47% in dollar volume compared to the first quarter. However, the number of deals increased by 20%. Additionally, digital women’s health platforms gained considerable traction, as women-specific remote care options continue to grow.
Another stark trend emerging from Q2 is the shift in focus from venture capital firms to oversea opportunities. Funding in Europe grew to $2.3 billion from $1.5 billion, while Asia saw a whopping 98% increase, which equals close to $5 billion.
Meanwhile, the figures for North American invest remained almost constant, declining slightly to $10.5 billion from $10.6 billion.
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