Behavioral Health Business June 7, 2022
With as many as 20,000 digital mental health apps on the market, there is bound to be redundancy.
This coupled with the money invested into the sector has made digital mental health prime for consolidation.
However, a mix-match of valuation expectations and digital health’s disappointing performance on the public market has created challenges for startups looking to exit via M&A. Investors advise that companies need to provide unique assets and a solid infrastructure to appeal to potential buyers.
Setting the stage for acquisitions
“The consolidation hasn’t begun in tremendous earnest. But I think all the pundits and anyone who’s just got a rational head on their shoulders is like, ‘It’s got to happen,’” Michael Yang, managing partner at OMERS Ventures,...