Facebook with Latestnigeriannews  Twieet with latestnigeriannews  RSS Page Feed
Home  |  All Headlines  |  Punch  |  Thisday  |  Daily Sun  |  Vanguard   |  Guardian  |  The Nation  |  Daily Times  |  Daily Trust  |  Daily Independent
World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  More Channels...

Viewing Mode:

Archive:

  1.     Tool Tips    
  2.    Collapsible   
  3.    Collapsed     
Click to view all Entertainment headlines today

Click to view all Sports headlines today

2020 has been a record fundraising year for healthcare startups, but a new report cautions that funding could stall in the last few weeks

Published by Business Insider on Wed, 25 Nov 2020


<p><img src="https://static1.businessinsider.com/image/5fbd692250e71a0011557310-2352/Screen Shot 2020-11-24 at 120614 PM.png" border="0" alt="Screen Shot 2020 11 24 at 12.06.14 PM" data-mce-source="CB Insights" data-mce-caption="CB Insights projects lower total funding and fewer funding deals in Q4 compared to previous quarters."></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>A blockbuster funding year for healthcare startups could end with a fizzle if the last few weeks are any indication.</p><p>A new <a href="https://www.cbinsights.com/research/report/healthcare-trends-q3-2020/">CB Insights report</a> out Wednesday looked at funding activity for healthcare startups from October 1 through November 17, which amounts to roughly halfway through the final quarter of the year. In that time, healthcare startups have raised 661 funding rounds amounting to roughly $10.2 billion.</p><p>Although an impressive figure, funding and deal activity for healthcare startups and digital health companies is projected to decline from previous highs if the current pace continues through the next few weeks.</p><p>"We wanted to dig into what we are seeing so far and make the projections based on that data, but it's important to remember this is an incomplete picture because it is only half of the data," CB Insights managing analyst Ja Lee told Business Insider.&nbsp;</p><p>At the current pace, the healthcare industry could stall out with just over $19.5 billion in funding from 1,267 deals. That would put 2020's final quarter below the <a href="https://www.businessinsider.com/vcs-digital-health-startups-insitro-oscar-kernel-patient-ping-dispatch-2020-7">two previous quarters</a>, both of which <a href="https://www.businessinsider.com/these-5-vc-firms-backed-the-most-digital-health-startups-2020-10">broke historical records at the time</a>.</p><p><em><strong>Read more: </strong><a href="https://www.businessinsider.com/these-are-the-6-mental-health-startups-setting-fundraising-records-2020-10">The 6 mental-health startups raising the most cash as the pandemic overwhelms workers and companies</a></em></p><h2>2020 is an unprecedented year for healthcare startups</h2><p>Lee is less concerned about fundraising data on a quarter-by-quarter basis and more interested in looking at the data for the entire year. Given the upheaval and unpredictability in private and public markets brought on by the coronavirus pandemic, she thinks the year-long analysis will be more informative than the smaller, more variable data sets released each quarter.</p><p>"When I think about the impact of the coronavirus on 2020 in general, I think 2020 will be a unique year to analyze and see, beginning to end, how it stacks up," Lee said. "For example, everyone's been talking about mental health tech this year and it's something that's picked up interest from investors and consumers as well, so it's interesting to see that overall."</p><p>Just over the last few days, major funding rounds came rolling in that could help the industry best CB Insights' projects. Headway, a mental health startup, announced $26 million in Series A funding on November 18. On Monday, <a href="https://www.businessinsider.com/atai-ceo-florian-brand-latest-125-million-financial-c-raise-2020-11">ATAI Life Sciences, a psychedelics company, announced $125 million in Series C funding.</a></p><p>Lee said there isn't enough data to prove whether funding historically slows at the end of the year since previous years have been inconsistent.&nbsp;</p><p>"It's really tough to say," Lee said of predicting exactly where 2020 will end. "In aggregate, 2020 will be a big year in terms of funding even with this quarter's project number being lower. There's still a chance we see a similar trend of $20 billion in reach for global health investments, and depending on what happens it could even surpass that, especially with these larger rounds coming in."</p><p><strong>SEE ALSO:&nbsp;<a href="https://www.businessinsider.com/startups-like-papa-are-bringing-the-gig-economy-to-healthcare-2020-11" >Investors are betting $1.4 billion that gig workers are the future of in-home healthcarehere's an inside look at one startup leading the charge</a></strong></p><p><a href="https://www.businessinsider.com/report-funding-healthcare-startups-projected-to-stall-q4-2020-11#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/transgender-activist-former-white-house-intern-sarah-mcbride-isnt-discouraged-by-trump-2018-3">Sarah McBride made history becoming the first openly trans person elected to a state Senate seat. In 2018, she explained why the Trump administration wouldn't discourage her work.</a></p>
Click here to read full news..

All Channels Nigerian Dailies: Punch  |  Vanguard   |  The Nation  |  Thisday  |  Daily Sun  |  Guardian  |  Daily Times  |  Daily Trust  |  Daily Independent  |   The Herald  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  New Telegraph  |  Peoples Daily  |  Blueprint  |  Nigerian Pilot  |  Sahara Reporters  |  Premium Times  |  The Cable  |  PM News  |  APO Africa Newsroom

Categories Today: World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Columns  |  All Headlines Today

Entertainment (Local): Linda Ikeji  |  Bella Naija  |  Tori  |  Pulse  |  The NET  |  DailyPost  |  Information Nigeria  |  Gistlover  |  Lailas Blog  |  Miss Petite  |  Olufamous  |  Stella Dimoko Korkus Blog  |  Ynaija  |  All Entertainment News Today

Entertainment (World): TMZ  |  Daily Mail  |  Huffington Post

Sports: Goal  |  African Football  |  Bleacher Report  |  FTBpro  |  Kickoff  |  All Sports Headlines Today

Business & Finance: Nairametrics  |  Business Insider  |  Forbes  |  Entrepreneur  |  The Economist  |  BusinessTech  |  Financial Watch  |  BusinessDay  |  All Business News Headlines Today

Technology (Local): Techpoint  |  TechMoran  |  TechCity  |  Innovation Village  |  IT News Africa  |  Technology Times  |  Technext  |  Techcabal  |  All Technology News Headlines Today

Technology (World): Techcrunch  |  Techmeme  |  Slashdot  |  Wired  |  Hackers News  |  Engadget  |  Pocket Lint  |  The Verge

International Networks:   |  CNN  |  BBC  |  Al Jazeera  |  Yahoo

Forum:   |  Nairaland  |  Naij

Other Links: Home   |  Nigerian Jobs