As digital health investment continues to grow (2018 YTD $16Bn), many companies are operating at a too small scale, and the fragmentation of the landscape remains too high. Larger investments and M&A will keys to creating financially solid companies, more complete solutions and bigger impact. Also, as digital health companies are maturing, more aggressive – non-organic growth strategies are being deployed. At the same time, digital health companies offer an excellent opportunity to extend capabilities of more mature health technology and services platforms.
On the -capital- supply side, the past years have seen the arrival of several -very- large venture funds (some with minimum investment amounts of $100M), sovereign wealth funds with active interest in healthtech, and a growing focus on digital health by Private Equity funds, who are faced with increasing challenges to find deals to deploy the record amounts of capital raised. As several of them were already familiar with healthcare and life sciences services, more are now looking at investment opportunities in digital health.
In this context, we will be exploring this theme during the panel “Digital Health, opportunities for large investors” with 4 large scale investors (New Dimensions Health Fund, Vitruvian, Ardian, Softbank Vision Fund ), as well as with the CEO’s of 2 unicorns: Tunstall (owned by Private Equity investors) and Proteus Digital Health (who already attracted $575M in funding). We’ll be discussing where the major opportunities are, what some of the pros and cons are for digital health companies, and what large investors are looking for when investing in digital health.