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In recent years, healthtech VC deal activity has spiked as healthcare organizations, clinical trial providers, employers, insurance providers, and policymakers become increasingly willing to adopt tech-oriented solutions. As healthcare providers focused more on investment in progressive digital health capabilities (during the pandemic) such as transition to cloud infrastructure, ML-based digital command center, conversational AI, telemedicine, virtual care, patient engagement, and automated administrative management reported historic growth in 2020-21. This study highlights top investment trends in the digital health and provides an outlook of what lies ahead in terms of investments.

Frost & Sullivan observed a significant increase in the digital transformation of healthcare and demand for effective IT solutions to improve care delivery, creating a lot of excitement among investors. Venture capitalist activities in health technology rise as healthcare organizations, clinical trial providers, insurance firms, employers, and policymakers become increasingly willing to adopt tech-oriented solutions. We noted investment records set over the last three years while new trends and business models arise as strategic mergers and acquisitions occur. Notable emerging themes include virtual care, patient engagement, platform approach, behavioral health, and femtech, driven by shifts in consumerism and decentralization of care delivery. As technologies evolve and become vital to efficient and cost-effective healthcare operations, innovators in this space will succeed with agile business models and scalability. They need to be ready to drive technology changes and demonstrate value to customers. This study analyzes the top 200 investments in the last five years to determine critical investment areas and trends and offer stakeholders insights into growth opportunities.