HealthTech investments face a sharp decline, Tracxn reports 55% drop in 2022
Tracxn’s recent HealthTech India Report brings to light a staggering 55% YoY decrease in HealthTech funding, with the sector amassing $1.4 billion in investments for 2022. The report suggests that a massive 75% drop in late-stage investments, down to $606 million from $2.4 billion in 2021, is the primary reason for this decline.
Interestingly, seed-stage funding fell by 52% YoY, amounting to $75.2 million in 2022, while early-stage funding experienced a 26% YoY increase, reaching $743 million. The majority of funds, 70.3%, were raised during the first half of 2022.
Despite the funding challenges since Q4 of 2021, the HealthTech sector is poised for a comeback, driven by increased digital adoption, supportive government policies, and technological advancements in AI, robotics, cloud computing, data analytics, and IoT. Although 2022 witnessed a significant funding drop, it remains the second-highest funded year in the past decade, after 2021, thanks to a renewed focus on health and a growing demand for digital health services.