Global Health Venture Funding 2022 - Half Year Update

Funding continues to flow in the first half of 2022 with $49.7B growth capital for health firms, despite a correction for digital and concerns around falling valuations.

Health Intelligence Unit

calendar image
July 1, 2022

Health venture funding remains at record levels historically as we close out the first half of 2022 with BioTech firms attracting capital and compensating for a slowdown in other categories. An exceptionally strong January - which included the Jeff Bezos-backed Altos coming out of stealth with a $3B war-chest to reverse disease - was followed by dwindling levels of activity and capital deployment as wider economic concerns quelled investor optimism.

Against a backdrop of slowing economic growth, the return of global stagflationary pressures for the first time in a generation and concerns around energy security, healthcare has once again demonstrated its defensive qualities in the first half of the year. As nations emerge from the coronavirus pandemic – learning to live with its presence – advances in clinical understanding over the period are translating into investment across drug discovery, cellular rejuvenation, gene editing, cell-based therapies and other activities focused on prolonging and improving life. The spike in investment in HealthTech businesses seen in 2021 has flattened out in 2022 so far. A combination of Covid-speficic circumstances and high levels of dry powder among the investment community created a febrile environment for valuations last year. Digital health companies that listed in 2021 (many via SPACs) have experienced sharp corrections to share price, creating pain for investors and talk of a ‘HealthTech bubble’. Nevertheless healthcare continues to provide a rich environment for digital innovation. Legacy systems and antiquated infrastructure remain one of the greatest barriers to driving productivity – and removing cost – in healthcare and Oracle’s monster $28B acquisition of Cerner in June reflects the market opportunity for transforming health patient data from systems of record into systems of intelligence. The application of AI and machine learning remains a magnet for venture funding in health as the technology is adapted and applied to issues of cost, access and quality.

Sign up for our free weekly newsletters

80,000+ subscribers get our free newsletter each week to stay a step ahead on the global impact economy, climate tech, education and digital health trends, innovation and investment and the future of inclusivity and sustainability.

arrow right
arrow right

$49.7B of growth capital at the half-year mark but market slowdown undeniable and FY projection anticipates 50% reduction in funding

The downward trend in activity towards the end of the half is hard to ignore and we have moderated our projection for the FY accordingly, planning for a leaner H2 as investors exercise caution. Over-exuberance in 2021 – especially in the HealthTech market – has left many digital health businesses struggling to justify lofty valuations. Our projection for the full year assumes activity in H2 will not surpass 50% of H1 levels. However many investors are still working hard to put undeployed capital to work and with inflation approaching 10% in the US market there will be pressure to put money to work at today’s prices.

$3B Altos deal leading the BioTech boom, French HealthTech driving megarounds and activity levels pick up across Asia

The US market continues to dominate global health venture funding by volume and value. The emergence of Altos as a $3B research powerhouse with a galaxy of scientific and executive talent (including GSK’s president of R&D and chief scientific officer, Dr. Hal Barron) is a testament to investor interest in the area of longevity. In April Biofourmis joined the HealthTech unicorn club (see here for our comprehensive list) with the Boston-based (but Singapore-founded) remote monitoring and digital therapeutics company raising $300 million in Series D funding, valuing the business at $1.3 billion. Outside of the US the French market was active in H1 2022, with Doctolib’s $557M round marking the largest HealthTech deal of the year so far. The online booking platform demonstrates the potential upside for firms able to both ‘digitize’ systems and remove administrative costs. Compatriots Alan ($192M) and AI specialist Owkin ($80M) have also raised capital in 2022. In Asia the standout deal was HK Asia Medical Group, which treats patients with cardiovascular disaease across Asian markets including Greater China and Japan. The group attracted $400M in Series D financing from investors including the venture capital arm of property developer Country Garden and Primavera Capital Group. Beijing-based robotics specialist MegaRobo raised $300M for global expansion in Series C financing, led by Goldman Sachs Asset Management, Asia Investment Capital. Elsewhere, Indian virtual care company MediBuddy completed a $125 million Series C funding round led by Quadria Capital and Lightrock India.

No items found.
No items found.

Latest Insights

Global Insights from HolonIQ’s Intelligence Unit. Powered by our Global Impact Intelligence Platform.

Digital Transformation
Digital Transformation
MedTech
MedTech
Summits
Summits
Impact 3000
Impact 3000
Nuclear
Nuclear
Mobility
Mobility
Electric Vehicles
Electric Vehicles
2021
2021
2020
2020
Sub Saharan Africa
Sub Saharan Africa
Nordic Baltic
Nordic Baltic
North America
North America
South Asia
South Asia
East Asia
East Asia
ANZ
ANZ
Market Sizing
Market Sizing
Augmented Reality
Augmented Reality
Blockchain
Blockchain
Virtual Reality
Virtual Reality
Regions
Regions
Markets
Markets
Mobile
Mobile
Client Report
Client Report
Publishers
Publishers
Labor Markets
Labor Markets
Global Landscape
Global Landscape
10 Charts Series
10 Charts Series
R&D
R&D
LMS
LMS
United Kingdom
United Kingdom
Executive Panel
Executive Panel
Language Learning
Language Learning
Russia
Russia
Israel
Israel
Germany
Germany
France
France
Media and Press
Media and Press
Climate Tech
Climate Tech
MENA
MENA
South Korea
South Korea
Japan
Japan
Southeast Asia
Southeast Asia
Health Tech
Health Tech
Global EdTech 1000
Global EdTech 1000
Unicorns
Unicorns
MOOCs
MOOCs
Global Giants
Global Giants
Client Note
Client Note
Capital Markets
Capital Markets
Advanced Technology
Advanced Technology
OPM
OPM
International Education
International Education
India
India
China
China
Canada
Canada
Venture Capital
Venture Capital
Bootcamps
Bootcamps
Online learning
Online learning
Notes
Notes
Europe
Europe
Asia
Asia
Africa
Africa
LATAM
LATAM
Brazil
Brazil
Robotics
Robotics
Education in 2030
Education in 2030
Artificial Intelligence
Artificial Intelligence
SDG 17
SDG 17
SDG 16
SDG 16
SDG 15
SDG 15
SDG 14
SDG 14
SDG 13
SDG 13
SDG 12
SDG 12
SDG 11
SDG 11
SDG 10
SDG 10
SDG 9
SDG 9
SDG 8
SDG 8
SDG 7
SDG 7
SDG 6
SDG 6
SDG 5
SDG 5
SDG 4
SDG 4
SDG 3
SDG 3
SDG 2
SDG 2
SDG 1
SDG 1
Climate Tech 1000
Climate Tech 1000
Health Tech 1000
Health Tech 1000
EdTech 1000
EdTech 1000
EdTech
EdTech
Diversity
Diversity
New Zealand
New Zealand
Australia
Australia
United States
United States
Biotechnology
Biotechnology
Environment
Environment
Infrastructure
Infrastructure
Energy
Energy
Climate
Climate
Workforce
Workforce
K12
K12
Higher Education
Higher Education

Sign up for our free weekly newsletters

Join 80,000+ free weekly newsletter subscribers.