Becker's Healthcare May 5, 2022
Digital health is not in an investment bubble, though innovators may want to prepare for tighter capital markets in the future, according to a Rock Health report released May 2.
Investment bubbles occur when company valuations increase far beyond what is justified. To assess whether digital health investment lives in a bubble, Rock Health analyzed six attributes of past investment bubbles: hype supplanting business fundamentals, high cash burn rates, rapid increase in valuations, surge of cash from new investors, unclear exit pathways, and fraud or funding misuse.
The report determined the digital health investment space is seeing a rapid increase in company valuations, and trends in recent funding amounts reveal investors are valuing digital health startups higher than in the...
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