HGP Releases its July 2021 Semi-Annual Digital Health Market ReviewJuly 22, 2021
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
To download the complete report, drop your name and email in the sign up form at the footer of this page or in the footer of www.hgp.com and a copy will be sent to you. As always, please let us know if you have any questions or comments.