During Q3, digital health's funding fell 36% quarter-over-quarter and 72% from its all-time high during last year’s Q2. The primary driver of this reduction is macro market trends, experts said, though digital health companies need to tie their services more directly to value to get funding in the future.
Digital health’s Q3 saw the lowest quarterly funding total in the past 11 quarters, but experts don't think this trend should be a cause for concern. They said it's important to remember that the mega-boom of 2020 and 2021 was an anomaly for the sector.
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
Faster cash burn rates, lack of growth in startup exits and sky-high valuations are leaving some industry observers nervous that a major market correction is on the way.