The spread of COVID-19 has created a defining moment for the digital health sector, as many products and services once considered “nice-to-haves” have transformed into necessities. Venture investors and company founders may be operating remotely but they are still hard at work, and the deal flow in the second quarter of 2020 reflects that.
The first quarter of 2020 was a record-breaker, with billions of dollars raised by digital health startups across hundreds of deals. But with social distancing efforts keeping people homebound, more than two out of three digital health investors surveyed by Rock Health at the end of the first quarter said they expected a slowdown ahead. Analysts at CB Insights echoed that prediction in early June, saying U.S.-based digital health startups would likely see a financing drop in the second quarter even as the numbers tick upward for startups based in other countries.
And yet, there has been no shortage of notable deals in the second quarter, especially for companies that, as Bond Capital’s Mary Meeker says in her special COVID-19 trends report, “decentralize medicine away from hospitals and empower patients as consumers.”
Here’s a look at just a few of them: