Key takeaway
The pandemic has contributed to a renewed interest in alternative care, allowing this subsector to surge ahead of others. The positive sentiment around virtual care also translated to the public markets, with some of these companies up +100% since the start of the year.
Over the last four years, private venture-backed healthtech companies have seen $1B+ in global* financings quarter over quarter. This year, US companies have raised a staggering 82% of global funding; Europe and China contribute 10% and 8%, respectively.
Alternative care companies pave the way in terms of subsector funding, surpassing the next highest-funded subsector (provider operations) by an incredible $2.6B over the last three years.
Historically, alternative care companies have skewed toward providing virtual care or in-person care; however, due to wide-spread adoption of telehealth during the COVID-19 pandemic, in-person companies have adopted a virtual care component, creating a hybrid care model.
Mental health funding is on an upward trend this year, with the most active investors favoring later-stage mental health companies. 1H 2020’s unprecedented funding can be attributed to three $90M+ deals.
In 2020, the SVB Global HealthTech Index (+102%) has recovered faster than the DJIA (-4%), S&P 500 (+2%) and Nasdaq (+14%). It is also ahead of FAMGA (+42%), whose companies have been relatively resilient to the pandemic.