Digital health faced a tumultuous funding environment in 2023, and some investors expect more of the same in 2024.
The year started with only a trace of the momentum following funding records in 2021 and early 2022. As the calendar turned to 2023, all signs pointed toward a tighter market.
Then it got worse when Silicon Valley Bank failed in March. The bank's downfall revealed the broader infrastructure’s challenges as interest rates rose in an attempt to cool inflation. Digital health and technology founders, who often relied on SVB as their bank of choice, were forced to pick up the pieces.
While some companies like Monogram Health ($375M), Aledade ($260M) and Strive Health ($166M) were able to secure large deals reminiscent of 2022, others faced a challenging environment and investors set a higher bar before writing checks. As a result, the number of unlabeled funding rounds surged. The year further widened the gap between companies that were able to grow closer to profitability and those that were struggling.
Heading in 2024, most investors are still cautious about their investments, although some are a little more optimistic, especially when it comes to artificial intelligence. Here are six digital health investors sharing their predictions for the coming year. Responses have been edited for clarity and length.