1、October 20242THE FUTURE OF HEALTHTECH 2024|04Market Highlights06Investments14Spotlight:Evolutions in Value-Based Care17Spotlight:AI in Healthtech21Global Exits25Appendix3Welcome to our Future of Healthtech 2024 report,a comprehensive analysis of challenges,trends and opportunities in todays healthte

2、ch innovation market.We entered this year with cautious optimism,which still rings true in the third quarter.There are reasons to be concerned.Slower investment paces and smaller check sizes mark the current investment environment.Investors have heightened expectations around strong unit economics,s

3、calability and paths to profitability.Normalization in valuations is in full force,with valuations across all stages under scrutiny.At least 12%of reported deals are down rounds,marking the highest level in the sectors history(page 9).There are a record number of unlabeled and unpriced extension rou

4、nds,where companies are leaning on existing investors to delay or avoid a value adjustment,hoping market forces,tech innovation or investor confidence will let them grow into their valuations before their runway vanishes.However,companies that are struggling to raise these inside rounds are having t

5、o look at M&A,cost cutting and down rounds as their coffers empty,suggesting the“markdown hammer”has yet to drop fully(page 10).Still,we are in a markedly different place than we were in 2023,and we may be turning a corner.Interest rates have finally begun to lower,inflation has cooled slightly and

6、public markets remain volatile but are getting stronger.These macroeconomic improvements have provided a much-needed boost to the space.The sharp drops in investment have tapered,with investment showing signs of early recovery.Quarterly investment over the last three quarters consistently hovered be