HomeAnalysisSilicon Valley Bank Releases Future of Healthtech 2023 Report

Silicon Valley Bank Releases Future of Healthtech 2023 Report

Silicon Valley Bank

Despite ongoing public market headwinds, the healthtech sector is showing signs of resilience, according to the Future of Healthtech 2023 report from Silicon Valley Bank (SVB), a division of First Citizens Bank.

The report examines the latest investment, fundraising and deal activity across the sector and provides analysis for subsectors including value-based care, alternative care, provider operations, clinical trial enablement, wellness & education, healthcare navigation, medication management and insurance.

In the first half of 2023, the sector saw the first positive public performance trends in over a year with stock trading up the first two quarters. M&A deal volume is also on the rise with activity expected to increase into 2024.

The pressure on valuations continues to impact investment activity across the sector. While many companies likely had enough runway from 2021 to avoid raising capital in 2022, those that previously avoided down rounds by raising insider capital extensions must now consider valuation resets.   

Future of Healthtech 2023: Key Data Points

  • $8.2 billion in venture capital invested into private healthtech companies
  • Healthtech publics trading up 6% in Q1 and 25% in Q2
  • 75 private venture-backed M&A deals in 2023
  • 78% of healthtech deals have undisclosed valuations
  • 50% of healthtech mega-deals (deals that are greater than or equal to $100 million) were focused on value-based care
  • $530 million of venture capital was invested into private women’s health companies in 2023

Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world’s most innovative companies and investors. SVB provides commercial and private banking to individuals and companies in the technology, life science and healthcare, private equity, venture capital and premium wine industries. SVB’s parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA), is a top 20 U.S. financial institution with more than $200 billion in assets.