Not surprisingly, COVID demanded we change the way we think about healthcare here in America.
For most of human history, the primary care provider has been the “quarterback” for patient care.
But now, the “family doctor” is being unbundled by digital health services at warp speed…
And money is flowing into the “Digital Health” space at a record rate.
In 2020, US digital health companies raised a record breaking $14.1B in venture funding across 440 deals.
Not only were there more deals, but bigger deals:
Over the past 36 months, average deal size increased from $21.5M in 2018 to $31.9M in 2020.
It was also the biggest year for IPOs with seven new digital health companies and a combined market cap of $37 billion hitting the market by the end of the year.
This included…
- Amwell which raised $742 million, and…
- GoodRX which raised $1.1 billion.
And let’s not forget the headline grabbing $18.5 billion merger between Teledoc and Livongo.
2021 is already off to a fast start with “Hims & Hers” merging with a SPAC called Oaktree Acquisition Corp in a deal valuing the company at $1.6 billion.
According to a May 2020 McKinsey study:
“With the acceleration of consumer and provider adoption of telehealth and extension of telehealth beyond virtual urgent care, up to $250 billion of current US healthcare spend could potentially be virtualized”
It’s a brave new world for healthcare…
And we want you – our Equifund subscribers – to be prepared to take advantage of this exciting trend.
Sincerely,
Jake Hoffberg – Publisher
Equifund
