Breakdown: VC investment into health startups in 2023
About 26% of VC capital raised by US Carta startups last year went to health-related sectors.
Obviously there are a hundred different ways to categorize those companies, but we broke it out into three major pieces: Biotech, Healthtech, and Medical Devices.
𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁𝘀
Biotech took in more than half of all health-related investment last year (across the top 10 metros). This is a major shift from 2019, when Biotech was only 35% of Health more broadly.
Health seems to be a pretty concentrated slice of VC - these top 10 metros accounted for 80% of all Health investment in the US.
Two ecosystems (Boston and San Diego) are anchored by Biotech to a very large degree. In San Diego, Biotech represents nearly half of every VC dollar raised across all industries.
Biotech is typically a more capital-intensive sector, where early-stage rounds are larger than in Healthtech in particular.
Medical Device startups lagged behind both other categories in terms of funding, valuation, and general activity last year.
Really fascinated by the shift towards Biotech in general - I'm assuming that is primarily due to Covid and the increased awareness of the potential in new drugs/therapies. But would love to know if there are other reasons why investors have favored that part of the health market in recent years.
Within Healthtech, last year saw a drop in funding for new healthcare provider startups and a relative increase in share of funding for telehealth. May just be a noisy artifact from a down year, however.
Investment into health seems to have held steady across out data at about a quarter of all VC investment over the pat 5 years. Wouldn't mind seeing that rise in 2024!
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#cartadata #startups #fundraising #biotech #healthtech #medicaldevices
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