The key insight this week
The J.P. Morgan Healthcare Conference is in full swing here in San Francisco this week. Though the focus is on financials and clinical information from major pharma companies like Sanofi and Merck, health-related startups are also part of the discussion.
Valuations in the three primary health-related startup industries (healthtech, pharma/biotech, and medical devices) declined in parallel to the reference SaaS category last year. Declines were steeper in Series A and B than at the seed-stage.
However, healthtech startups fared surprisingly well as valuations actually rose from H1 to H2 2022 in the seed-stage. Sure, fewer overall rounds occurred in the latter half of the year, but the best healthtech deals continued to see strong term sheets.
Even Series B healthtech valuations, which declined 16% from H1 to H2, held up relatively better than valuations for medical devices and biotech (both of which were cut by nearly a third over the same timeframe).
Medical devices trail in median valuation compared with the other two health categories. Given medical devices contend both with strict regulatory process and the difficulty of building hardware, they traditionally have been valued less highly during early stage venture rounds.
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Peter Walker
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DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
