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Investors ploughed $57.2 billion into digital health companies in 2021

Tim Green

Global investment in digital health companies hit $57.2 billion in 2021, an increase of 79 per cent from 2020.

Global investment in digital health companies hit $57.2 billion in 2021, an increase of 79 per cent from 2020.

The new Hampleton Partners Healthtech M&A Market Report says the rise was accelerated by the Covid pandemic, which revealed shortcomings in 'legacy' healthcare systems. It details 601 acquisitions (up 13 percent from 2020) of which 10 closed at over $1 billion.

Investment in mental health-related technologies reached $5.5 billion in 2021, rising 139 per cent since 2020. In March 2021, US-based Ginger, a provider of on-demand mental health therapy, raised a $100 million Series E round led by Blackstone, before merging with guided meditation app Headspace.

David Bell, Director at Hampleton Partners, said: “Though the new investment has been significantly concentrated around telemedicine due to the pandemic, venture capital is increasingly diversifying its healthtech targets, with AI-based clinical decision software and digital therapeutics being key areas.

“We also found that Europe was a hot spot for investment with funding rounds significantly exceeding the global average, with a 131 per cent increase to $6.7 billion in total investment from 2020 to 2021. European digital health funding now accounts for around 12 per cent of global investment, up from 9 per cent in 2020.”