Fewer collections in 2022, but bigger tickets

On January 24, the annual conference “Top trends in e-health in 2023” was held, organized by Interaction Healthcare. On this occasion, Sandrine Cochardová, editorial director of Mind Health, a media dedicated to the transformation of the healthcare market, presented an evaluation of French eHealth fundraising over the past year.

In short, the number of French start-ups that benefited from fundraising decreased significantly in 2022 compared to the previous year, but the median ticket increased significantly.

Fewer elevators

If digital health was stimulated by the health crisis, the sector then followed the global trend: the beginning of 2022 was still driven by the momentum of 2021, but from the third quarter fundraising decreased due to an uncertain macroeconomic context and more waiting. – see and demanding investors.

French eHealth start-ups will raise 1.16 billion euros in 2022, according to Health, which only takes into account publicly announced operations. That’s 138 million more than in 2021. However, there were fewer companies that profited: in 2022, only thirty-nine completed a funding round, compared to sixty-seven in 2021.

But bigger tickets

On the other hand, those who managed to come out on top had access to larger sums: the median ticket almost tripled. As of 2018, it is around 2.5 million euros, rising to 7 million in 2022. Increases of less than €5 million have become rarer: sixteen last year compared to forty-seven in 2021, with eighteen increases between €5 and €25 million in the sector, five more than in 2021.

The majority of the amounts obtained in 2022 thus remained concentrated on a few key operations”, explains Mind Health: 82.9% of the total amount was invested in just nine start-ups, each of which raised more than 20 million euros. The four largest fundraisings recorded in this sector were last year: 500 million euros for Doctolib in March, 183 million euros for Alan in May, 80 million euros for Padoa, specialized in occupational health protection and 70 for Diabeloop, focused on the treatment of diabetes .

Investors want consolidated start-ups

An observation that shows that in digital health, as in all other sectors, investors, previously fans of hyper-growth, are now looking to bet on start-ups with consolidated and profitable models. “We have reached a stage where funds can be more interested in clients, especially hospitals, in order to analyze their needs and provide them with turnkey solutions.“, explained Chahra Louafi, head of the “Autonomous Patient” fund at Bpifrance to Mind Health.

Currently, funds are demanding consolidations and questioning whether or not bridging is necessary to create value internally and mature with more comprehensive solutions for the next investment round.” he adds and specifies that “they sometimes delay the market entry of start-ups from their own portfolio in order to fund them internally while they meet the expected requirements“.

Return to specialized funds

Furthermore, the market would be “again occupied primarily by specialized funds” in digital health. With a health crisis,”“Generalist funds wanted to invest in healthcare out of interest or even speculation, saying it was promising”pointed out Valéry Huot, responsible for Venture-Digital Health at LBO France, “but in the face of the complexity of the industry, which includes both technical and medical knowledge, they are retreating today“.

The digital health category that generated the most is “decision support or diagnosis” with eight representatives (in 2021 there were already seven): Incepto, Therapixel, Allison, Siview, Sonup, Surge, Nurea and Diagnoly.

Telemedicine at half mast

On the other hand, the “Telemedicine and telemonitoring” category is at half-mast this year with only four lifts (Apricity, Sêmeia, Charles.co and Cardiorenal), compared to seventeen, the largest number last year.

Teleconsultation is coming after the profit-making crisis of COVID and the fact that in mid-October the members of the Social Security Committee adopted an amendment banning teleconsultation from home as part of the examination of the Social Security Funding Bill for 2023.

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