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The Squeeze Continues…Early Stage Health Tech Deal Volume Falls to New Lows
Five consecutive quarters—and counting—of declining deal counts in pre-seed and seed-level investments for health technology startups in the U.S.
This month, Forbes reported that venture capital investments in healthcare startups hit record highs, despite the infamous dissolution of Theranos. While this implies it is still a buyer’s market, hundreds of quality early stage-health technology companies ready for funding are not securing investments. At Inova Personalized Health Accelerator (IPHA), we researched this trend in our Health Tech Early Stage Funding Report, which we published this month. As reported in VentureBeat earlier this year, Rick Gordon, director of IPHA, detailed a troubling trend at the pre-seed and seed stage investment level for health technology startups – early stage health technology investments are declining.
With the latest data from Pitchbook, it seems that this squeeze has not abated. In the recent report from our team at IPHA, the Q2-2018 data from Pitchbook reveals that the number of health tech deals valued at $10 million or less continues to decline to a level not seen since 2013. Our analysis indicates that deal volume has fallen nearly 45 percent since Q1-2016.