Does the digital health startup you are thinking of investing in, and that is what you are doing when you partner or purchase their product have enough cash to get off the ground?
In the first half of the year, companies raised a total of $14.7 billion across 372 deals, according to a report released today by Rock Health. By comparison, they raised $14.6 billion in 2020 — a record for the time — and just $7.7 billion in 2019.
Some of the biggest funding rounds so far this year include:
While more companies continued to line up for big exits, the picture looks a little bit different than it did earlier this year.
Digital health companies that recently went public haven’t performed as well recently as their predecessors. Of the 18 digital health companies that went public on the New York Stock Exchange and the Nasdaq since the beginning of 2020, their average stock returns fell below Nasdaq levels in the second quarter, according to the report. Meanwhile, those that went public before the pandemic generally performed on-par or better than the Nasdaq average. Digital health companies that went public in 2020 or 2021 performed worse than the Nasdaq average in recent months, according to Rock Health.
Cash if fuel in the startup world. The runway for these digital health startups is long. Does your startup have enough fuel to get off the ground?
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