Digital Health startups have been driving record levels of funding on a yearly and quarterly basis since the coronavirus pandemic hit the US in Q1 2020 per Rock Health, Fierce Healthcare, Mobihealthnews and other outlets.
Since digital health is trendy and scooping up capital with relative ease, what are the actual exit odds of a hypothetical Digital Health company in 2021?
AMOS had a look.
A hypothetical Digital Health company that had secured Seed and was raising Series A will have an exit likelihood between 5 and 7%.
If a hypothetical Digital Health Company secures Series A, its exit likelihood would jump to about 9%.
Understand that an increase in seed-level digital health startups only increases the cutthroat competition for customers and an acquirer. VC firms seem to be throwing (cheap) capital at Digital Health companies knowing that a few are going to stick, but the odds of exit per AMOS are still lower than one would anticipate.
Invest wisely and know your odds.