The digital health market is on fire. All things equal, based on our experience we estimate digital health valuations rose at least 30% from pre- to post-pandemic. For high performing companies, the valuation premium is much higher. Reinforcing our experience, from pre-pandemic February 2020 to post-pandemic June 2021, the NASDAQ rose 50%. Through June, M&A volume and value is on pace to increase 43% and 42% in 2021, and Investment volume and value is on pace to rise 23% and 85% this year. We see four factors driving these trends:
- Excess Financial Market Liquidity
- Looming Capital Gains Rate Hikes
- An Indisputable Investment Thesis for Digital Health
- Fear – of Missing Out (Buyers) and of Losing It All (Sellers)
In this edition of our semi-annual Digital Health Market Review, we explore these trends along with an overview of digital health’s steady surge in a vaccinated world, macro and healthcare forces that have supported and continue to drive the digital health thesis, and a discussion of sky high valuations in the booming investment world. The report leverages the Healthcare Growth Partners database to evaluate M&A and investment trends, valuation multiples, and capital markets activity across the digital health and health information services sectors.
The Semi-Annual Report includes the following:
- Overview of Surging Investment Activity
- Macro and Healthcare Catalysts
- Digital Health Market Analysis
- Digital Health M&A and Investment Activity
- Digital Health Valuation Trends
- Macroeconomic Trends
Download the complete report here. To stay in the loop, drop your name and email in the sign up form at the footer of this page or in the footer of www.hgp.com. As always, please let us know if you have any questions or comments.
