Report: COVID-19 accelerates health tech investment in 2021

The report’s authors wrote that COVID-19 motivated providers to update their technology, arguing that tech-enabled startups with new care models are starting to pull patients away from bigger health systems. “Large healthcare organizations are often slow to renew tech stacks – but they will have to, eventually – which could provide incredibly lucrative opportunities for health tech companies looking to tackle parts of that overall value chain,” they wrote. “Although strategic acquisitions still account for a plurality of exit volume, persistent favorable market conditions likely would encourage health tech companies to keep going public, especially firms with business models similar to those of biotechs, which can facilitate readier access to large, liquid, public capital markets to ensure ample funding for the lengthy pathways to commercialization,” the report’s authors wrote.