In 2021, digital health startups in the United States raised around $30 billion, nearly doubling the previous year's overall investment. This momentum is expected to continue in 2024 as digital health companies use artificial intelligence, machine learning, data analytics, and telemedicine to help pave the way in healthcare innovation. This is why one of the major themes of HIMSS 2023 is also digital health investment. Although investors and market observers are wary of making firm predictions that 2023 will break last year's record, most look at the year with bright eyes. So, keep reading to find out our predictions for digital health investment in 2024.
Digital Therapeutics Will Trend
Digital therapeutics are clinically evaluated software that healthcare practitioners use to treat various diseases. They include mobile health and wellbeing apps that replace or enhance existing disease interventions. In addition, they enable patients to obtain care simultaneously and remotely without doctors continually overseeing the apps. Almost all of the previous decade has been spent by companies providing digital therapeutics. However, digital therapeutics saw massive funding growth, with startup companies distributing medical interventions using an evidence-based system to manage and treat a wide range of diseases reporting record investments. Moreover, it's a recurring theme: According to McKinsey, investments in digital therapeutics firms in the United States have increased by an average of 40% per year over the last seven years. Patient expectations of healthcare have also risen, with patients seeking greater control, adaptability, and seamless integration into their lives. This paves the way for a year of rapid growth in digital therapeutics in 2023.
Mental Health Apps Will Become Common
A mental health condition affects nearly 800 million people worldwide or 11% of the global population. Before the COVID-19 pandemic, the digital mental health space was rapidly expanding. However, the anxiety and stress caused by the health crisis have accelerated the demand for virtual behavioral health services, including mobile mental health apps. No doubt, it's a market attracting a lot of money for startups. According to CB Insights, global mental health startups raised a record high of $2 billion in funding sources. Moreover, we predict that in 2023, worldwide spending on mobile mental health apps will keep on rising.
Telehealth Will Expand
According to a McKinsey report published in July, telehealth use has levelled up 38 times higher than before the COVID-19 pandemic. Moreover, according to industry experts, the telehealth industry is taking shape and moving away from just urgent medical visits to focusing on more specialized care. Globally, telehealth businesses raised more than $4.2 billion and we expect a significant rise in 2022 - 2023. These days, most EHR software integrates with a telehealth feature that enables remote care. For example, patients can communicate with their practitioners through video calls and mimic the in-person consultation experience. You can learn more about telehealth software on Software Finder as well. You Can Also Read About Digital Health Investment in 2023: The Way Forward
The Bottom Line
As the health technology market expands, entrepreneurs should demonstrate the market potential to their customers through improved quality, lower costs and better experience. Investors will bear significant responsibilities towards entrepreneurs and the industry. In addition to providing capital, they should mentor and share regulatory knowledge with creators to shift the industry as a total system toward the future of health.
