Experts discuss the challenges faced by the health tech sector in 2023, with insights on funding slumps and market struggles. They predict a rebound in IPOs and share expectations for 2024. Topics include digital health funding trends, shifts in investments, and predictions for the industry's future.
Health tech sector's current downturn is part of a normal innovation bubble, highlighting strong digital health assets.
Promising future in health tech industry seen through pandemic advancements, focus on value-based care, and ongoing tech innovations.
Deep dives
Silver Linings Amid Market Trials
Despite a challenging year for the digital health and health tech sectors due to the COVID-19 pandemic, 2023 brought some positive shifts. A report by Sophia Guerra and Steve Krause highlights the distinction between a cyclical market correction and long-term industry potential. They emphasize that the current downturn is part of a normal innovation bubble, with digital health assets being fundamentally strong. The sector's advancements during the pandemic, increased focus on value-based care, and ongoing tech innovations indicate a promising future.
Key Sectors and Trends for 2024
In 2023, the overall performance of the healthcare industry faced challenges, with a notable downturn. However, certain sectors showed resilience and promise for the future. Three crucial sectors poised for growth include the digital enablement of healthcare, the shift towards value-based care, and the increasing role of AI in healthcare operations. These areas represent significant opportunities for investment and development, highlighting key trends to watch in the coming year.
Moving Towards Efficient Growth and Future Predictions
To emerge from the current market low, successful health tech companies will need to prioritize efficient growth over rapid expansion. Lessons learned from the past emphasize the importance of sustainable business models and operational efficiency. Looking ahead to 2024, the integration of AI technologies in healthcare, advancements in consumer-focused health initiatives, and the rise of value-based care models are anticipated to shape the industry's evolution, offering new avenues for growth and innovation.
The digital health and health tech sectors had a tough year in the wake of the COVID-19 pandemic, navigating through a turbulent hype cycle. Startups witnessed a significant slump in funding, and public markets didn't quite live up to expectations. However, amid these market trials, 2023 revealed some silver linings for the sector.
This week on "Podnosis," Sofia Guerra and Steve Kraus from Bessemer Venture Partners sit down with Fierce Healthcare's Heather Landi to discuss the health tech sector's performance, unraveling the factors that contributed to its current state. They share what it will take to get health tech out of its current market lull and explore whether we’ll see a rebound in IPOs this year.
They also share their big predictions for health tech in 2024, like who is making it to the other side and who will be left in the digital health graveyard.