Health startups are flush with cash, but still need to prove their merit
The Hustle

Health startups are flush with cash, but still need to prove their merit

Health startups raised $7B in Q1 2021, a near decade high. Benefits departments think there are too many options, though.

You’ve def seen them: digital health startups… they’re everywhere.

Per The Wall Street Journal, $7B of VC money hit the sector in Q1 2021, the highest figure in at least 10 years.

The main customers for these health services are corporate-benefits departments…

… and they are revolting against the flood of choices

Benefits execs are pushing startups for a few changes:

Health companies are taking note

Telemedicine provider Teladoc moved into diabetes monitoring with a $13.9B acquisition of startup Livongo.

That’s one of many deals for Teladoc, while its main competitors — like MDLive, Doctor on Demand, and PlushCare Inc. — are active on the M&A front, per WSJ.

And in a very meta development, here’s another hot investment area: apps that help you manage other health apps (AKA care-navigation apps).

At the current funding pace, you’ll soon see these apps everywhere too.

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