Hundreds of healthcare startups are struggling, many reducing their valuations or merging to survive, as the sector experiences a severe funding downturn post-2021.
Despite a brief resurgence in funding at the beginning of 2024, many healthcare startups are not recovering, with several, including Forward, shutting down after previous funding struggles.
The stark contrast in funding figures shows that only 379 healthcare startup deals took place in 2024, a significant drop from the record 729 in 2021.
Investors indicate that many startups face the harsh reality of down rounds or mergers to continue operating, as funding remains far below prior highs.
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