Healthcare knowledge and analytics and tech-enabled providers would be the sectors most impacted by generative AI, in line with a survey by funding agency GSR Ventures.
The survey, which included responses from greater than 40 healthcare know-how enterprise capitalists, discovered that over 71% consider ChatGAPT/GenAI modifications their funding technique “considerably” or “a little bit.” In distinction, 12% say it impacts their technique “in no way,” and 17% say it modifications it “considerably.”
Buyers anticipate valuations might be fairly related subsequent yr in comparison with 2023, with 78% (+/-20%) saying they would be the identical. 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. Almost one-third of traders (32.5%) stated ophthalmology holds the least promise for startups.
The largest challenges for firms in traders’ portfolios in 2023 have been redirecting in 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 have been difficulties firms confronted.
Half of traders stated the supplier scarcity and burnout disaster maintain essentially the most important alternative for rising firms.
For the rest of 2023, traders stated they anticipate to make the identical quantity or extra investments in comparison with 2022.
WHY IT MATTERS
Based on a report by Rock Well being, digital well being startups raised $2.5 billion throughout 119 offers within the third quarter of this yr, making Q3 the second lowest-funded quarter by {dollars} raised since This autumn 2019 and bringing 2023’s whole funding so far to $8.6 billion throughout 365 offers.
The report notes traders are funding startups with new remedy pathways and scientific circulation options, and although there have been notable bankruptcies in 2023 throughout the digital well being house, corresponding 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.'”