Market Trends of United States Venture Capital Industry
Healthtech trends toward record-breaking year
At the intersection of health care and technology, health tech innovators include a unique place in the Future of Health. Investors, especially CVCs, can support innovators and the industry in general. Innovators could bring transformative business models and a consumer-centric approach. It is imperative for investors, including industry incumbents, to coach innovators and support them with industry and regulatory expertise and capital to accelerate toward the future of health together.
Growth in venture capital funding for health tech innovators, at record levels in Covid year, continued unabated in 2021. The previous year, venture funding for health tech innovators crossed a record-breaking revenue. Even as the economy and industries, including the healthcare industry, reel under the impact of the COVID-19 pandemic, venture funding for these innovators nearly doubled in previous years.
Increasing Number of Venture Capital Investment Deals all time high in 2021
Venture capital is a temporary equity investment in young, innovative, non-listed companies that stand out. Although the companies lack the current earning power, they include above-average growth potential, which makes them an attractive investment opportunity. Investment stages shifted recently. In many cases, seed, early, and late-stage investing are now distinct subindustries within VC. A successful VC ecosystem requires healthy activity at each investment stage since each plays an integral role in a company's growth. The VC investment landscape transformed over the past 20 years.VC mega-deals more than doubled in 2021 compared to 2020. Many of these mega deals are for unicorns since these companies tend to skew larger and are often later in their growth cycle.
