H. Mallory Caldwell’s Post

How is Med Tech evolving in 2024? 2023 was one of the quietest years in med tech venture. So, what’s changing in 2024? I want to share insights and trends from the recent Medical Device and Digital Health Conference, hosted by Wilson Sonsini on June 13-14. Though a smaller gathering, it offered valuable takeaways: 1. Digital Health is Gaining Momentum Focus: For the first time, a half-day session was dedicated to digital health topics. Keynote Speakers: Susan Blumenthal, MD (former Assistant Surgeon General and Deputy Assistant Secretary for Women’s Health), and Tammy Sun (CEO and Founder of Carrot Fertility), highlighted the growing policy support for women’s health and shared perspectives from the founder’s viewpoint. Noteworthy Initiatives: Advanced Research Projects Agency for Health (ARPA-H) and the Sprint for Women’s Health are just the beginning. Women's health is continuing to gain momentum. 2. Emphasize the Business Opportunity First Insight: This point was echoed by many speakers, notably by Shifamed founder Amr Salahieh. Understanding the business landscape instills confidence in founders that there will be customers and acquirers. 3. Focus is key in the Digital Arena Panel Insights: At a panel on digital health for women’s health, investors Alice Zheng, Anarghya Vardhana, Georgia Cavanaugh, and Eileen Tanghal emphasized that they are willing to invest despite risks, provided there is a clear definition of the unmet need and the target market. Memorable Quote: “If your product is a pair of jeans, do not tell me that everyone wears jeans and therefore your market is gigantic.” 4. Key Questions Investors are Asking in 2024: - Are you growing at a pace comparable to other potential investments (e.g., SaaS)? - Are you positioned at the intersection of tech and healthcare? - Will you be financially viable in the next two years? (Cash position, burn rate) - Do you have defined commercial KPIs, how are you tracking? Thank you to James Huie and the Wilson Sonsini team for organizing a fantastic meeting. #MedTech #DigitalHealth #HealthcareInnovation #WomenHealth #VentureCapital #InvestmentTrends #Startups #MedicalDevices

Interesting insights from 3 health-focused investors at a recent conference in Phoenix. TLDR: They are "cautiously optimistic" about digital health technology funding in 2024; companies are getting funded but also at lower valuations. KMS Healthcare works with many digital health technology startups who are looking to "do more with less," when it comes to funding. Investors want to know that you will spend your money wisely; KMS Healthcare has a very compelling ROI given that we facilitate our customers' success by coming in under budget and ahead of scheduling using fantastic expert talent in Vietnam. #techoffshoring #digitalhealth #technologyoffshoring #technologyoutsourcing #MVP https://lnkd.in/ekmJbmW3

Digital health funding hit $5.7B through June, on track to surpass 2019 and 2023, Rock Health reports Early-stage checks are growing, the proportion of unlabeled deals is tapering, and the digital health IPO market is showing early signs of life. U.S. digital health startups pulled in $5.7 billion across 266 deals in the first six months of 2024, marking continued momentum in the sector after a rocky few quarters last year.

Interesting report from PitchBook on first quarter Digital Health VC activity. - $1.1 billion in funding. Key late-stage deals were led by Transcarent ($126M) and Rightway ($108.8M). - The top investment categories were general & primary care ($213.4M) and health benefits navigation ($140.7M). Challenges & Trends: Valuations: Less than 20% of startups reported a priced round in the last 18 months, with an increase in extension/bridge rounds. Digital Therapeutics: Facing significant challenges due to elusive reimbursement and cautious investors. Better Therapeutics is winding down operations, and Akili is being taken private for $34M, a sharp decline from its peak valuation of nearly $450M. Telehealth: Setbacks include the shutdown of Optum's virtual care and Walmart's telehealth services. The pandemic saw over $15B in VC funding since 2020, but some platforms struggled with unsustainable business models and strategic missteps (e.g., Teladoc's costly Livongo acquisition and Amwell's delisting from Nasdaq). Looking Ahead: While digital therapeutics and telehealth face hurdles, there's potential in: Platforms integrating various treatments for conditions like diabetes, metabolic health, and mental health. Specialty telemedicine, B2B platforms, and hybrid-care models, which offer a promising investment outlook. Despite current challenges, strategic investments and a focus on sustainable models can drive the next wave of innovation in digital health. As a former digital health founder, I encourage founders in this space to keep going...there is light at the end of the tunnel! If you are a digital health founder with impressive traction based in Virginia, feel free to reach out! #digitalhealth #venturecapital #virginiaipc #virginiainvests

Digital health startups faced a funding shift in Q1, with $2.7 billion across 133 deals, a decline from the pandemic peak. However, deal count hit a six-quarter high, and AI garnered 40% of funding. Startups explore creative fundraising and outcome evidence to attract investors. Public market turbulence led to delistings, potentially reshaping startup valuations. Adaptation and demonstrating efficacy are key in a crowded digital health landscape. Healthcare Dive Read: https://lnkd.in/eNaUWmGQ #healthcareindustry #healthcarestaffing #healthcareats #staffingindustry

Verge's Managing Partner and founder, Joseph Mocanu, took the hot seat at Emergence 2024 in Sydney. 🎤 In conversation with Wholesale Investor's anchor, Rhythm Gupta, Joseph spoke about the trends in investing within the healthcare sector, particularly investors' lukewarm sentiments towards health technology post-COVID. But he believes now is the best time to look into the sector more seriously. Joseph and Rhythm discuss how his background in science and consulting has prepared him to become a healthtech investor, the challenges and opportunities of investing globally, and Verge's criteria for investing in startups in deeptech and platform categories tackling the biggest problems in healthcare. Listen to his full interview: https://lnkd.in/gEfjnsQu It's great to see many investors looking to solve key health problems in many parts of the world at Emergence 2024. 🌐 #VentureCapital #Healthtech #Emergence2024 #EmergenceSydney2024 #CapitalRaising #funding

The game has changed in healthcare and digital health companies need to take note. Incumbents have more than doubled in size since the start of the pandemic so that means their expectations for acquisition have shifted. It's time to build more "steak" than "sizzle" and play the game differently than ever before. Thanks to my co-author Christina Farr for letting me jump onto Second Opinion Media to share some of our thoughts about how to re-write the playbook when it comes to scaling in #digitalhealth. More 👇 https://lnkd.in/gvu7siaB

Good news to celebrate all weekend long, particularly for digital health entrepreneurs (yes, AI is the top of list). 1.   Both deals and dollars in digital health have increased. 2.   There is more funding for early stage companies. 3.   There are signs of recovery in the digital health IPO market. We can now all be reassured that innovation in healthcare is being supported, nurtured with funding, and that we are moving to a better #FutureofHealth. Now doesn’t that make you feel better already? Good read from Rock Health. Team Adriana Krasniansky, Mihir Somaiya and Sari Kaganoff https://lnkd.in/gcvgYeKv

Small but mighty. Fewer, focused bets. Digital health funding is not dead yet. Rock Health is out with the Q3 market update - encouraging signs for sure While total funding and deal count are down, the average check size is steady. (Hence the fewer, focused bets comment) Like venture funding, M&A activity was low in Q3 2024. We should also expect continued consolidation in the space: "...Acquiring a startup with a built-out product and sales, potentially at a depressed price, can be more affordable than building a new product and customer base from scratch..." DarioHealth expanded mental health and MSK capabilities through acquisition. As CEO Erez Raphael puts it "The digital health market is transforming from single-solution companies that want to ‘do it all’ solo to scalable, combined offerings that drive efficiency for both vendors and clients" Point solutions. Do they have a future? What do you think? https://lnkd.in/g_JUbfuK

🌟 Discover 2024's Trailblazers in Digital Health 🌐✨ In the ever-evolving landscape of digital health, innovation is the cornerstone of progress. 🌟 As we navigate 2024, the industry continues to witness groundbreaking advancements that are set to redefine patient care, medical technologies, and healthcare delivery. Today, I'm excited to share an insightful article from TechCrunch highlighting ten of the most exciting digital health startups of this year, as identified by leading venture capitalists. 🚀 These startups are not just pushing the envelope—they are transforming the very fabric of healthcare with their cutting-edge solutions. 🏥 From AI-driven diagnostics to personalized treatment platforms, these trailblazers are addressing critical challenges and opening new frontiers in the medical field. 🌐 Join me in exploring how these visionary companies are shaping the future of healthcare and discover the innovations that could soon be making a significant impact on our lives and well-being. 💡 Leaders and aspiring minds in the MedTech arena, let's engage! 🤝 Share your thoughts on how we can leverage these startups' innovations for our own development and success. Read the full article here: https://lnkd.in/gEJazzQr #DigitalHealth #Innovation #Healthcare #MedTech #HealthTech #AIinHealthcare #StartupSuccess #FutureOfHealth #TechTrends