The digital health investment market is past its peak.
While the final tally for Q2 2022 is still being tabulated, the total will be significantly smaller than Q1’s $6.6 billion, which itself was lower than the total from Q4 2021. As of June 27, venture capital funding for Q2 2022 totaled $3.8 billion, which is on track to be the lowest quarterly total in two years, according to Digital Health Business & Technology’s data.
What’s particularly striking is that large-sized deals, those valued at $100 million or more, have seen a sharp decline. In Q1, there were 17 large-sized deals. In Q4 2021, there were 22. In Q2, there have been eight, and five of those came in early April. Average deal size in Q2 has been around $26 million; in Q1 it was $31 million; and in Q4 2021 it was $41 million.
