Leaders in the digital health space told MobiHealthNews their predictions about investors’ priorities in the coming year and what companies will need to watch out for.
Following 2021’s expansive investments and the decrease in funding in 2022, alongside significant layoffs, stakeholders expect funders to be more selective in 2023 – scrutinizing companies’ business models and considering whether they’ve demonstrated they can improve patient outcomes.
Mark Luck Olson, CEO of RecoveryOne
“A tightening capital market will punish those healthcare disruptors that grew at all costs and failed to maintain basic financial discipline. New venture investment will disproportionately go toward players that have established product-market fit, compelling outcome evidence, strong EBITDA margins, and have grown enough to have line-of-sight to profitability.
“Employers and health plans alike will rationalize their portfolio of digital health solutions, pruning those that fail to generate sufficient engagement, or who can only be delivered as stand-alone, monolithic solutions.”