硅谷银行-2024年健康技术的未来 The Future of Healthtech 2024

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October2024

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TurningaNewcorner

WelcometoourFutureofHealthtech2024report,acomprehensiveanalysisofchallenges,trendsandopportunitiesintoday’shealthtechinnovationmarket.

Weenteredthisyearwithcautiousoptimism,whichstillringstrueinthethirdquarter.Therearereasonstobeconcerned.Slowerinvestmentpacesand

smallerchecksizesmarkthecurrentinvestmentenvironment.Investorshaveheightenedexpectationsaroundstronguniteconomics,scalabilityandpathstoprofitability.

Normalizationinvaluationsisinfullforce,withvaluationsacrossallstagesunderscrutiny.Atleast12%ofreporteddealsaredownrounds,markingthehighestlevelinthesector’shistory(page9).Therearearecordnumberof

unlabeledandunpricedextensionrounds,wherecompaniesareleaningonexistinginvestorstodelayoravoidavalueadjustment,hopingmarketforces,techinnovationorinvestorconfidencewillletthemgrowintotheir

valuationsbeforetheirrunwayvanishes.However,companiesthatare

strugglingtoraisetheseinsideroundsarehavingtolookatM&A,costcuttinganddownroundsastheircoffersempty,suggestingthe“markdownhammer”hasyettodropfully(page10).

Still,weareinamarkedlydifferentplacethanwewerein2023,andwemaybeturningacorner.Interestrateshavefinallybeguntolower,inflationhascooledslightlyandpublicmarketsremainvolatilebutaregettingstronger.

Thesemacroeconomicimprovementshaveprovidedamuch-neededboosttothespace.Thesharpdropsininvestmenthavetapered,withinvestment

showingsignsofearlyrecovery.Quarterlyinvestmentoverthelastthree

quartersconsistentlyhoveredbetween$4.0Band$4.5B—markedlyhigher

thantheaveragequarterlyinvestmentin2019($3.0B).Early-stagedealactivity

hasgrowntorecordheights(page7),surpassingeven2021levels.

Artificialintelligence(AI)andmachine-learning(ML)techarebringingnew

enthusiasmintothesector,withAIsolutionsachievingstunningtractionandrevenueramprates.Thetransformationisfeltmostinthehealthcareback

office.Virtualassistantsandrevenuecyclemanagementtoolshavetakentheleadininvestmentonthestrengthofclearerrevenuepropositionsandeasierdeployments(page17).Value-basedcare(VBC)hascontinuedtoevolve,as

specialtycarestartupscreatenew,moreintegratedmodelsofcarethatuseAI

foressentialdataanalysisandoutreach(page14).

Despitethesector’stumultuousfewyears,healthtechstartupscontinueto

produceamazinginnovation,frombringingtherighthealthcaretotheright

patientattherighttimetofindingincreasinglybetterwaystosupportprovidersandletthemfocusontheircoremission:helpingpatients.Startupsthatcan

meetthoseneeds,providingmeasurable,provableresultstotheircustomers,

areleadingthehealthtechindustrybacktowardsunnydays.

JulieBettsEbert

ManagingDirector

LifeScience&HealthcareBanking

jbetts@

svb》SBiaiinckonvaiieySource:PitchBookData,Inc.,SVBproprietarydataandSVBanalysis.

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Fourthemesemergingaboutthefutureofhealthtech

Buildinganewnormal

Growthisslow,but2021isstillweighingthemarketdown.

There’snoendinsightfortheongoing

valuationadjustmentsthroughdownroundsanddealterms.Thatsaid,

investmentamountsandvolumenumbersareshowingappetite

amonginvestorstorebuildandreevaluateportfolios.

Therearemorecompaniesholding

on,hopingnottoneedadownround.Weexpecttoseemorevaluationsfallbutoverallinvestmenttokeeprising.

pleaseexitthroughanywhereatall

Exitsaregettinghardertofindacrosstheboard.

Bigwinnersfrompreviousyears

arenowstrugglingwithinflated

valuationsanddifficultexitpaths.DespitesomesuccessfulrecentIPOs,overallpublichealthtech

performancestilllookspoor.

WithM&Aslowing,investorswillneedtobewillingtogobackto10-or15-

yearhorizonsforhealthtech.

AdministrativeAlisleadingthecharge

ClinicalAIisinthebackseatfornow.

Inthefaceofgrowinguncertaintyabouttheeffectivenessandvalueofclinical

healthAI,administrativeandback-officesolutionsaredrivinginvestmentand

activityinhealthtechAI.

AshealthcarerecoversfromthelastAIhypecycles,clearROIandquantifiableperformancearethemostimportant

factorsinAIdeployments.HealthcareprovidersseemtobecomfortablewithwhereandhowtodeployadministrativeAI.Theydon’tseemtofeelthatway

aboutclinicalAIyet.

valuemmbasedcare

needsintegratedcare

Specialistsaretheboomingfrontierofvalue-basedcare.

There’sagrowingrecognitionthat

coordinationandcollaborationbetweenprimarycareproviders(PCPs)and

specialistsisessentialtomeetingthegoalsofVBCcontracts.

Techthatcanhelpsolvetheproblems

ofdataexchange,patientattributionandcarecoordinationhasavitalroletoplayinthisgrowingecosystem.

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TheFutureofHealthtech2024report

Togetthefullreport,reachouttoyourSVBpointofcontact

What’sinside:

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LeadAuthors

JulieBettsEbert

ManagingDirectorLifeScience&

HealthcareBanking

jbetts@

JulieBettsEbertisaManagingDirectoronthe

NationalLifeScience&Healthcareteamat

SiliconValleyBank,coveringtheMid-AtlanticandSoutheastmarkets.Julieprovidesspecialized

bankingservicesanddebt-financingsolutionsandadviceonstrategicgrowthtolifesciencecompaniesacrossallsectorsandlifestages.

JuliereceivedanMBAwithhonorsfromColumbia

BusinessSchoolandaB.S.fromtheMcIntireSchoolofCommerceattheUniversity

ofVirginiawithaconcentrationinfinance.

JackieSpencer

HeadofRelationship

ManagementforLifeScience&HealthcareBanking

jspencer@

JackieSpencerleadstheUSRelationshipManagementteamforLifeScienceand

HealthcareAcceleratorandGrowth.Jackieandherteamarefocusedonprovidingbankingandfinancingsolutionstoinnovativecompaniesinthissector.

SincejoiningSVBin2007,Jackiehasworkedacrossboththetechnologyandhealthcarepracticesfromemergingmarkettolate-stagecorporatefinance.

JackiegraduatedfromSaintMary’sCollegeof

Californiawithhonors,receivingabachelor’sinfinance.

NinaKandilian

SeniorVicePresident

HealthcareVentureCapitalRelationshipManagement

nkandilian@

NinaKandilianmanagesrelationshipswithtraditionalVCfirmsfocusedonhealthcareandlifescience

investments.PriortoSVB,sheledproductmarketingandstrategyatvarioushealthtechstartups

andwaspartofthefoundingteamattheMassChallengeHealthtechstartupacceleratorprogram.NinastartedhercareerattheMassGeneralBrighamhealthsystemin

variousproductanddigitaltransformationroles.

NinareceivedherMBAatBabsonCollegeandabachelor’sdegreefromSuffolkUniversity.

contributors

RaysaBousleiman

VicePresident

HealthcareVentureCapitalRelationshipManagement

rbousleiman@

DennisHe

ManagingDirectorLifeSciences

dhe@

NuziBarkatally

VicePresident

LifeScience&HealthcareStartupBanking

nbarkatally@

BillSideris

Director

LifeScienceandHealthcare

bsideris@

MarketInsightsTeamAuthors

TimotLamarre

Researcher

MarketInsights

tlamarre@

AlexanderLennox-Miller

SeniorResearcherMarketInsights

alennoxmille@

ReportAcknowledgments

Thankyoutothefollowingforlendingtheirsubject-matterexpertisetothisreport:

polarispartnersal6z

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ADivisionofFirstcitizensBankAllnon-SVBnamedcompaniesareindependentthirdpartiesandarenotaffiliatedwithSiliconValleyBank,adivisionofFirst-CitizensBank&TrustCompany.

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Disclaimers

TheviewsexpressedinthisreportaresolelythoseoftheauthorsanddonotnecessarilyreflecttheviewsofSVB.

Thismaterial,includingwithoutlimitationtothestatisticalinformationherein,isprovidedforinformationalpurposesonly.Thematerialisbasedinpartoninformationfromthird-partysourcesthatwebelievetobereliablebutwhichhasnotbeenindependentlyverifiedbyus,and,assuch,wedonotrepresenttheinformationis

accurateorcomplete.Theinformationshouldnotbeviewedastax,accounting,investment,legalorotheradvice,norisittobereliedoninmakinganinvestmentorotherdecision.Youshouldobtainrelevantandspecificprofessionaladvicebeforemakinganyinvestmentdecision.Nothingrelatingtothematerialshouldbe

construedasasolicitation,offerorrecommendationtoacquireordisposeofanyinvestment,ortoengageinanyothertransaction.

Allnon-SVBnamedcompanieslistedthroughoutthisdocument,asrepresentedwiththevariousstatistical,thoughts,analysisandinsi