Sector Snapshot - Key Trends in Dealmaking - Emerging Healthcare & Life Sciences

Sector Snapshot: Key Trends in Dealmaking Emerging Healthcare & Life Sciences | 3 Market trends Utilizing dedicated PitchBook verticals that span key healthcare segments, then filtering by venture deals to look at investment in emerging companies within those spaces, it is clear that the bulk of healthcare venture activity is concentrated in healthtech and biotech, at the forefront of digitalization and the profusion of improved hardware and software tools and services. AI is expediting select drug research pipelines while other critical advances such as gene editing, T-cell therapy, bioprinting, andmicrobiome research are increasing the diversification and volume of potential therapeutics and their deployment. Telemedicine, improved analytics, and data collection, plus the explosion of fitness and wearables applications, are driving healthtech volume. Both segments host companies at differing stages of maturity that are garnering venture-growth dollars, while industry-specific venture firms are still propelling overall volume as tourist VCs retreat due to concerns over market conditions and pathways to profitability. 3 “2024 Outlook for Life Sciences GenAI, Drug Prices, Economy Likely to Influence Strategy,” Pete Lyons and Leena Gupta, December 6, 2023. Biotech & healthtech drive the bulk of all deals VC deal activity ($B) by type – Emerging Healthcare & Life Sciences *As of 02/23/2024. Source: PitchBook. Pharmaceuticals and Biotechnology Surgical Devices Therapeutic Devices Monitoring Equipment Other Devices and Supplies Diagnostic Equipment HealthTech $80 $70 $60 $50 $40 $30 $20 $10 $0 2018 2015 2020 2023 2014 2019 2016 2021 2024* 2017 2022 2013 Benefiting from a surge in digitalization , biotech & healthtech command the most capital invested VC deal activity (#) by type – Emerging Healthcare & Life Sciences *As of 02/23/2024. Source: PitchBook. Pharmaceuticals and Biotechnology Surgical Devices Therapeutic Devices Monitoring Equipment Other Devices and Supplies Diagnostic Equipment HealthTech 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2018 2015 2020 2023 2014 2019 2016 2021 2024* 2017 2022 2013