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Rock Health’s 2024 half-year report suggests there is light at the end of the tunnel for healthcare VC funding.
Getty
IFor healthcare startups looking to raise capital, is there light at the end of the tunnel? venture capital?that is Rock Health The half-year fundraising report suggests that the United States Digital Health Startups In the first half of 2024, 266 deals raised $5.7 billion. And if this trend continues, this year could reach or exceed 2019 and 2023 fundraising levels, marking a return to “normalcy” from the pandemic-induced peak.
this week HLTH We hosted a discussion in New York, moderated by the author, that provided insights into the health tech funding landscape. Laura Silman of Left Lane Capital, Partho Desai of Flare Capitalland Vig Chandramouli of Oak HC/FTKey points include:
What’s Hot: AI is a thing! But how do you separate the hype from the reality? First, don’t start with the sales pitch “we’re an AI company.” Instead, what problem are you trying to solve? Be prepared for a longer due diligence process where investors will focus on “quality.” Right now, funders are in the back office and workflow applications. Think billing, coding, automated note-taking.
Who pays: When it comes to AI applications, startups are competing with incumbents like Epic Systems and Oracle Health (formerly Cerner), which are developing their own products. But health systems aren’t tied to the incumbents and are willing to pay twice as much if a new product offers three times the benefits in combined revenue generation and cost savings.
Where is the exit: The looming presidential election means market uncertainty. While there have been several healthcare IPOs, such as Waystar and Tempus, it is unclear when the IPO market will open up again. The best exit option is strategic M&A.
With $277 million in new funding, this startup aims to unlock the secrets of biology
Molly He, CEO of Element Biosciences;
Element Biosciences
Over the past two decades, genome sequencing — decoding the DNA building blocks of our genetic code — has become an essential tool in medicine, spurring the development of COVID-19 vaccines, generating new treatments for cancer, and is a key component of precision medicine, which tailors disease treatments to each patient’s unique biology.
San Diego-based startup Element Biosciences, with its DNA sequencing platform Aviti, is one of many players in this R&D sandbox. The company announced Thursday that it had raised a $277 million Series D investment at a valuation of $1.03 billion. This is a boon for Element at a good time.
Please see here for the detail.
Pipeline and Deal Updates
AI: Regard, which uses AI to provide physicians with insights based on patient data, announced a $61 million Series B round led by Oak HC/FT.
Embedded Devices: NewSupera Medical, which developed an implantable device to improve bladder control for incontinent patients, announced a $23 million Series D round of funding led by Vertex Ventures HC and Treo Ventures.
Cancer Care: Time Care, a startup that helps patients navigate their cancer treatment journey while entering into value-based payment agreements, has raised $55 million in equity and $40 million in debt.
Cancer Treatment: Scorpion Therapeutics, a company developing novel precision cancer treatments, has raised $150 million in a Series C round co-led by Frasier Life Sciences and Lightspeed Venture Partners.
Blood test: Truvian Health, a startup developing a benchtop blood-testing device, has raised $74 million in funding co-led by Wittington Ventures and Great Point Ventures that will be used to fund clinical trials as the company seeks FDA approval for its device.
privacy: Freshpaint , a software startup bridging the gap between healthcare marketing and patient privacy, raised $30.7 million in a Series B round led by Threshold.
VA Scribe Pilot: The Department of Veterans Affairs selected Abridge and Microsoft’s Nuance as the winners of its AI Tech Sprint Challenge, and the two companies will enter into a pilot program agreement to deploy automated AI medical scribing software “for testing and evaluation in a real VA environment,” according to a federal notice.
This startup raised $5.2 million to develop a blood test for cancer.
Predicta CEO Kate Caves (center) with co-founders (from left) Gad Getz, Irene Ghobrial, Ken Anderson and Romanos Sklavenitis.
Predicta Biosciences
Each year, more than 35,000 Americans are diagnosed with a blood cancer called multiple myeloma, but doctors must rely on invasive, painful, decades-old tests like bone marrow biopsies to make a diagnosis. Precision oncology company Predicta Biosciences wants to change that by offering patients a non-invasive diagnostic test that can be performed with a simple blood draw.
Please see here for the detail.
More Healthcare News
UnitedHealth Group The company said total losses from cyber attacks on its Change Healthcare division will be between $2.3 billion and $2.45 billion in 2024.
Elevance Health Second-quarter profits reached $2.3 billion despite the health insurer’s decline in Medicaid enrollment.
The makers of the blockbuster GLP-1 agonist drugs used to treat obesity and diabetes Lily and Novo NordiskResearchers are investigating using the drug to treat a range of ailments, from sleep apnea to fatty liver disease.
Below is a summary of companies developing competing weight loss drugs. Boehringer Ingelheim and Viking Therapeutics.
Pfizer The company is developing a once-daily weight-loss drug, danugliplon, after seeing promising data in early-stage trials. And shares in the Swiss pharmaceutical giant are Roche The stock has risen this week after the company reported promising results for an experimental weight-loss drug.
Diagnosed women Endometriosis Risk of developing the disease may be “significantly increased” Ovarian cancerAccording to a new study.
Elon Musk His brain-computer interface company Neuralink The company is preparing to surgically implant a brain chip in a second patient.
Forbes Overall
Elon Musk’s crazy plan to build a massive xAI supercomputer in Memphis
Fintech’s Newest Unicorn: Home-Secured Credit Cards
How much is JD Vance worth?
What else am I reading?
Nation’s 911 System on the Brink of Emergency (KFF Health News)
As GLP-1 sales soar, insulin users worry Novo Nordisk and Eli Lilly will go ahead without them (STAT)
This child’s brain tumor is incurable, but immunotherapy shows promise (Nature)
