After a turbulent period following the Covid-19 pandemic, the digital health funding landscape has seen renewed stability and activity over the past six months. Billy Deitch, a partner at Oak HC/FT, highlighted improved investment opportunities, as companies, after years of tightening their cash flows, are now gearing up for raising funds in 2025. The focus has shifted from rapid growth to sustainable scaling and delivering on solutions suited to the slow-moving healthcare sector, marking a change in strategy for digital health startups.
"Coming out of the boom times of '21 and '22, there were a couple years of companies tightening their cash burn, not raising - and now we're seeing so much more activity."
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