The article discusses the challenges faced by digital health startups in securing funding and the potential for bankruptcies in the coming years. It highlights that many digital health companies raised significant funding during the pandemic but are now struggling to maintain growth and profitability. Investors have become more cautious, leading to down rounds and valuation cuts for startups. The article cites examples of companies like Cerebral and Noom that have laid off employees and faced scrutiny over their business practices. It also mentions that some startups may be forced to file for bankruptcy or seek acquisitions by 2024 if they cannot secure additional funding. The article emphasizes the need for digital health companies to focus on sustainable growth, cost-cutting measures, and demonstrating tangible value to patients and healthcare providers.
Source: https://www.businessinsider.com/digital-health-startups-raising-down-rounds-bankruptcy-2024-11