During the first quarter of 2020, venture funding levels in the global healthcare and life sciences sector has increased 4% by dollars raised, quarter-over-quarter, despite the turbulent COVID-19 environment. According to a recent CB Insights report, healthcare companies raised $14.6 billion this past quarter in 1,156 deals. Deal volume decreased 6% quarter-over-quarter. The inverse relationship between funding size and deal volume can likely be attributed to companies choosing to stay private longer and shifting to larger later-stage deals.
Source: CB Insights
Healthcare companies in North America raised $10.3 billion in venture funding, which included 25 "mega-rounds," deals raising over $100 million, out of the United States, according to CB Insights data. A total of 664 private venture deals closed in the United States during the first quarter of 2020. Home to various innovative startups, Israel saw a total of 69 deals close in 2019 (excluding cross-border deals), with deal volume keeping steady in 2020 with 14 deals.
Within the healthcare and life sciences sector, telehealth and mental health startups provide critical services, as in-person health services are limited as a result of COVID-19 restrictions. According to CB Insights data, news mentions relating to telehealth startups have doubled from the last quarter in 2019 as companies broaden the list of services offered to include mental, behavioral, and physical health services during the pandemic. In the first quarter of 2020, a total of 103 deals by telehealth companies, raising $1.6 billion. Mental health startups closed 44 deals, raising $576 million.
Article originally published on 20 May 2020
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