2020 Market Insights Report: Chasing a new equilibrium

2020’s stress test to our healthcare system created what felt like a fast forward button for digital health, with unprecedented growth in funding, adoption, policymaking, and national attention. Venture capital dollars flowed to US digital health companies at a new all-time high, with over $14B invested across 440 deals. 2020 also represented a thematic shift in liquidity for digital health venture investors, with upswings in both IPO and M&A activity. While questions remain about a new equilibrium for the digital health market, this post explores four factors underpinning what we see as a durable investment sector: sustained commitment from investors, new consumer behavior change, rising enterprise buyer appetite, and a breakout exit market.