Digital health exits. Private health unicorns. Stealthy financing.
Dude, where’s my liquidity?
We took a look at funding activity vs. exit activity to get a sense of the exit environment for digital health companies. The full post can be found here.
One of the main takeaways is that despite there being some liquidity events, digital health companies have still yet to see a breakout exit.
Almost every recent digital health IPO has floundered or stalled in public markets.
That said, CoverMyMeds was acquired by McKesson for $1B+ this year. Incumbent healthcare players have been rarely acquisitive of startups, but McKesson’s play could be the beginning of private market moves for large healthcare giants targeting digital health.
What company do you think is best positioned to exit next and be a shining star for digital health companies?
Speaking of New York health tech, we picked up a stealthy SEC filing in January into Cedar, a medical billing company based in New York for $12.8M. The funding comes from Thrive Capital and Founders Fund, two firms with pretty significant activity in the healthcare/life sciences/digital health space (sharing Oscar Health as a mutual investment). It’s worth noting that both firms have ties to the current administration through Josh Kushner (Thrive Capital) and Peter Thiel (Founders Fund).