Orlando – Pawan Kohli; strategic advisor Redesign your healthHe spoke at HIMSS24 Venture Connect about his experiences with failure and the lessons startups can learn to ensure growth in the ever-changing digital health market.
Global Digital Health Funding Significant reduction in 2023 Compared to 2022, transactions decreased. Lowest level since 2016. Additionally, there were only three mega-rounds (deals of $100 million or more) in Q4 2023, also the lowest since 2016.
Examples of companies that ceased operations in 2023 include: olive and Pair Therapeutics.
In his story, „„Failure is painful, but full of promise: Learning from failure,“ said Kohli, purchasing small rural health systems aims to expand in the coming years as these systems struggle. He said this could become a viable option for health tech companies in the future. And companies can now test their products through acquired medical institutions.
He also believes that the biggest pitfalls in digital health financing in 2023-2024 will be uncontrolled spending, failure to learn from vetoes, too narrow a focus on revenue growth, and high-functioning board members. I told them that this was because they had not been able to establish the association.
Investor pressure may also have played a role in the closures in 2023, but closures always occur for a myriad of reasons.