The Heart of Healthcare | A Digital Health Podcast

2024 Digital Health Year End Review | CEO of Rock Health Advisory, Megan Zweig

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Dec 30, 2024

Megan Zweig, President and CEO of Rock Health Advisory, dives into the captivating shifts in digital health for 2024. She discusses how funding rebounded to $10 billion with a focus on sustainability. AI made waves, capturing 40% of investment dollars despite fierce competition. Additionally, Zweig highlights the surprising resilience of past unicorns and strategic partnerships, like Eli Lilly's with Ro, which signals a new era in weight care. The conversation also touches on the growing importance of women's health and innovative care solutions.

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INSIGHT

Return to Historic Norms

Digital health funding in 2024 returned to 2019 levels, around $10B when adjusted for inflation.
There were fewer mega-deals but a healthier focus on sustainable growth and profitability.

INSIGHT

Goliath's Revenge

There's increasing concentration of capital among top VCs.
Nine funds raised 50% of all venture capital, with firms like General Catalyst and Andreessen Horowitz leading in digital health investments.

INSIGHT

M&A Standstill

M&A activity in digital health hit decade lows in 2024 due to valuation disagreements.
Buyers sought good deals, while sellers hesitated to accept lower prices than their previous valuations.

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From the return of "historic norms" in funding to the rise of AI and strategic pharma partnerships, 2024 was quite the year for digital health. Rock Health Advisory CEO Megan Zweig joins us on this episode to unpack a year defined by resilience, consolidation, and the 'revenge of the Goliaths.' We look at the funding data, reveal how the industry's unicorns survived their valuation hangovers, and share why 2024 might be remembered as healthcare's boiling point.

We cover:

💰 How digital health funding returned to 2019 levels at ~$10B, with fewer mega-deals but healthier fundamentals

🤖 How 40% of investment dollars went to AI-enabled companies despite growing incumbent competition

🔄 Why M&A hit decade-lows as buyers and sellers struggled to align on valuations

🏢 The concentration of power among top VCs, with just nine funds raising 50% of all venture capital

🏥 The surprising resilience of 2020-2022's unicorn cohort in navigating the downturn

💊 Eli Lilly's strategic partnership with Ro and what it means for the future of weight care

👥 The rise of women's health, from Maven's success to Midi's innovative health system partnerships

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Show Notes:

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About our guest:

As President and CEO, Megan leads Rock Health Advisory, a digital health strategy group that helps enterprise companies understand and act on opportunities, craft novel solutions, and succeed in an evolving landscape. Previously, Megan served as COO of Rock Health and oversaw Rock Health’s membership offering and research efforts. Prior to joining Rock Health, Megan worked at The Advisory Board Company, where she led the Physician Executive Council, a best practice research membership supporting Chief Medical Officers at over 1,300 hospitals and health systems nationwide. Megan received an MBA from Berkeley Haas, where she graduated valedictorian of her executive MBA class in January 2020. Megan graduated cum laude from Duke University, earning a B.A. in Public Policy Studies with a focus on health policy.

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