Q&A: General Catalyst on AI and digital health funding in 2024

In a discussion with MobiHealthNews, Holly Maloney, managing director at General Catalyst, highlights the need for digital health stakeholders to refocus on fundamental aspects of healthcare, including improving access, outcomes, cost, and workforce retention. She emphasizes the importance of addressing these basics before delving into innovative solutions. Maloney anticipates a continued role for artificial intelligence (AI) in healthcare, particularly in alleviating administrative burdens and aiding in scaling operations. She sees AI contributing to personalized solutions and expects a resurgence of consumer health applications with truly personalized experiences.

Regarding digital health funding in 2024, Maloney predicts a healthy pace of early-stage investments driven by founders committed to the healthcare mission. She suggests a potential flight to quality at later stages, with optimism that many companies will fall into the "quality" category due to transforming business models and the realization of substantial market opportunities. Maloney also anticipates funding for creative consolidation, where merged entities could exceed their standalone potential.

Discussing General Catalyst's intent to purchase a healthcare system, Maloney underscores the commitment to long-term transformation in the face of industry challenges. She expresses excitement about the insights gained through this acquisition and highlights the rise in the adoption of GLP-1s (glucagon-like peptide-1 receptor agonists) as a noteworthy trend in 2023. Looking ahead to 2024, she emphasizes the need to understand the impacts of specialty drug pipelines on pricing and access, acknowledging the challenges that may arise in the evolving healthcare landscape.