2023 Digital Health VC Survey

Where digital health is going in 2024 and what is the deal with generative AI

Oct 26, 2023

Where is digital health going? Are investors scared about putting money into the space today? How are health technology investors reacting to generative AI? Where are people focused now? Any specific clinical areas of interest?

These are all questions that founders, investors, and others interested in healthcare typically ask me. While it’s easy to give an opinion, as a data scientist I far prefer to answer with data that backs it up. Here we gathered insights from over 40 leading healthcare technology VCs and are sharing the results here in our GSR Ventures annual digital health investor survey.

Some quick highlights:

Most healthcare investors are taking a “middle ground” on generative AI. 71% of investors believe ChatGPT/GenAI is changing their investment strategy “somewhat” or “a little”, with 12% saying it does “not at all”. Only 17% of investors are willing to say ChatGPT/GenAI changes their investment strategy “significantly”.
The sectors that healthcare investors believe are most impacted by generative AI are: healthcare data and analytics and tech-enabled services.
Investors believe that the clinical areas with the most promise for startups are oncology (for the second consecutive year) followed by cardiology.
Overall investors expect valuations to be fairly similar in 2024 compared to 2023. 78% believe valuations will be the same +/- 20%, however slightly more investors believe valuations across health technology will continue to fall next year.

For a detailed analysis, dive into the complete survey results below. Also feel free to comment on which questions you want us to ask investors next year.

Thanks again to all of the investors who shared their insights to make this possible!