Funding to China-based healthcare startups plummeted in the first quarter of the year, as investor activity dried up amid the Covid-19 pandemic.
Along with the health crisis that hit China in early 2020, healthcare startups saw fewer deals and dollars come in during the first quarter as investors paused on new financings.
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Deals to China-based healthcare companies fell 39% compared to the quarter prior, with just 100 healthcare deals in the country as Covid-19 pushed investment appetite down.
The number of mega-rounds ($100M+) to China-based companies also fell, from 8 rounds in Q4’19 to just 3 in Q1’20.
More specifically, the digital health space in China saw a large decline, with funding down 52% and deals down 51% quarter-over-quarter since Q4’19.
Telehealth companies, however, saw a spike in utilization for their services as patients turned to online visits.
The largest China-based digital health financing in the quarter went to Zhangshang Tangyi, a mobile diabetes management app that allows patients to record their own health data. It raised a $144M Series D in January from investors including Samsung, Talsy Capital, and SIG Asia Investments.
For more information and additional insights into healthcare funding trends, check out our State Of Healthcare Q1’20 Report: Investment & Sector Trends To Watch.If you aren’t already a client, sign up for a free trial to learn more about our platform.