In the current digital health fundraising environment, startups must focus on profitability and sustainability of their unit economics to secure capital. The digital health sector ended last year with the lowest amount of capital invested in U.S.-based startups since 2019. This year is expected to be a transitional year with a potential rebound in 2023. Investors are looking for clarity on interest rates and technological innovation, as well as an improved business quality seeking investment. Startups should focus on their pathway to profitability, as it will be more important in 2024. Investors assess startups by looking at their growth trajectory and potential exit valuation pathway. The market expects greater quality and clarity in 2024.
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Profitability Is King in 2024’s Fundraising Environment, Expert Says
