The Health Tech industry is experiencing some shifts based on ongoing developments in key areas, such as the emerging dominance of AI, mental health funding and strategic interest. The 5 key takeaways are:

In an overall stable year in terms of funding activity compared to 2023, earlier rounds have been dominating the first three quarters with later-stage rounds picking up in Q4. Deal structures remained stable, reflecting resilience despite economic uncertainties.

AI-focused investments now account for over one-third of total digital health funding. However, investors are becoming increasingly cautious of “AI-washing.” Mental health continues to lead the way as the top-funded indication.

From the electronic patient file to hybrid care and Germany’s Digital Healthcare Act, regulatory hurdles remain a major challenge, forcing some promising companies out of the market. Nevertheless, several players have successfully built profitable revenue streams through reimbursement models.

Valuation levels have continued to recover after the 2023 dip, setting the stage for increased IPO activity in 2025. A number of players are already positioning themselves for the next step.

Structural shifts from 2023/24, growing strategic interest, and an overall positive market sentiment point to a year of consolidation. This will create attractive exit opportunities across various indications and technologies.

Our Health Tech Report Q4 2024 is published solely in English.

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