Healthcare Trends of Q1, 2021

It’s no surprise healthcare startups had a major year in 2020. With the coronavirus setting a new precedent for the future of healthcare, we’ve rounded up the year’s most notable companies, deals, and exits in our report 50 Top-Performing Healthcare Startups.

Deals were up 🔥

In 2020, 232 VC Investors participated in 324 deals, totaling $4.56BN. In comparison, 2019 saw 201 VC investors participating in 247 deals, totaling $2.89BN. Several companies doubled their valuations in their Series C rounds: Freenome, which develops a platform for early cancer detection, raised a Series C of $270MM, led by Bain Capital and Perceptive Advisors. Village MD, a company focused on primary care, raised Series C funding of $275MM from Walgreens and Kinnevik (2.5 times higher than a year prior).

Some startups seemed primed and ready for a new world of at-home service provision. Telemedicine and telehealth became a lifeline for people with existing conditions who needed to remain in contact with their doctors at home and led to several successful exits.

• Amwell, a telehealth company that helps connect secure calls with patients and doctors, went public on the NYSE in September 2020 and raised close to $750MM.

• Outset Medical, maker of the Tablo hemodialysis machine which treats diabetes patients from the comfort of their homes, IPOed in September 2020 raising over $250MM.

Mental health goes mainstream 💆

A year of unprecedented measures of stay-at-home orders, job losses, and disconnect from our social networks and support systems meant big business for behavioral health therapists and other mental health practitioners. 

• Lyra Health, a startup that focuses on connecting companies and employees with mental health providers, raised a Series C and a Series D totaling $185MM. In January 2021, it raised another mega-round Series E of $187MM.

Big Tech takes a slice out of healthcare

• Apple jumps on the healthcare bandwagon, exploring contact tracing apps, remote monitoring through its Apple Watch. and the launch of its membership fitness services Apple Fitness+.

• Google makes a move into healthcare investing with telehealth company Amwell, as well as acquiring wearables company Fitbit.

• Amazon acquires online pharmacy PillPack and launches Amazon Pharmacy.