Healthcare knowledge and analytics and tech-enabled companies would be the sectors most impacted by generative AI, in response to a survey by funding agency GSR Ventures.
The survey, which included responses from greater than 40 healthcare expertise enterprise capitalists, discovered that over 71% consider ChatGAPT/GenAI modifications their funding technique “considerably” or “a bit of.” In distinction, 12% say it impacts their technique “by no means,” and 17% say it modifications it “considerably.”
Buyers anticipate valuations shall be fairly comparable subsequent 12 months in comparison with 2023, with 78% (+/-20%) saying they would be the similar. Barely extra traders say valuations will proceed to fall in 2024.
Oncology was deemed the scientific space with essentially the most promise for startups, adopted by cardiology. Practically one-third of traders (32.5%) mentioned ophthalmology holds the least promise for startups.
The largest challenges for firms in traders’ portfolios in 2023 had been redirecting in the direction of profitability (33.3%), adopted by go-to-market challenges (31%), and fundraising (28.6%). Buyers additionally famous discovering and attracting expertise and buyer retention had been difficulties firms confronted.
Half of traders mentioned the supplier scarcity and burnout disaster maintain essentially the most important alternative for rising firms.
For the rest of 2023, traders mentioned they anticipate to make the identical quantity or extra investments in comparison with 2022.
WHY IT MATTERS
In keeping with a report by Rock Well being, digital well being startups raised $2.5 billion throughout 119 offers within the third quarter of this 12 months, making Q3 the second lowest-funded quarter by {dollars} raised since This autumn 2019 and bringing 2023’s complete funding so far to $8.6 billion throughout 365 offers.
The report notes traders are funding startups with new remedy pathways and scientific circulate options, and although there have been notable bankruptcies in 2023 throughout the digital well being house, comparable to London-based multinational digital well being agency Babylon and prescription digital therapeutics maker Pear Therapeutics, “digital well being’s new actuality is ‘smaller however mighty.'”