Canadian-based digital health startups stand to benefit in a post-COVID world according to PwC Canada and CB Insights

02 Oct 2020

  • Globally, startups in the space have already raised $17.8B USD year-to-date (YTD), well on track to outpace last year’s levels.
  • So far this year Canada-based digital health startups have already raised more than $300M USD, roughly double the amount raised in all of 2019.

Toronto - September 28, 2020 - Digital health — the use of digital technology to drive improvements in the design of medical products and delivery of healthcare — has grown in popularity and potential over the last decade. The COVID-19 pandemic has taken digital health to the next level thrusting companies into the mainstream

PwC Canada, in collaboration with CB Insights, mapped out the top 51 venture capital (VC) backed digital health companies in Canada. According to the Canadian Digital Health Market Map, digital health startups around the world have already raised $17.8B USD YTD, well on track to outpace last year’s levels. So far this year Canada-based digital health startups have already raised more than $300M USD, roughly double the amount raised in all of 2019.

“The healthcare sector was significantly behind in terms of technology adoption, but COVID-19 accelerated this. Over the next few years, the sector will attract significant investment and we’ll continue to see rapid innovation and openness to using new technologies from all stakeholders including patients, providers, as well as payers and public health. However, we will have to overcome how governments adopt these new technologies, specifically around privacy concerns for patients and citizens,” says Andrew Popliger, National Technology sector Leader, PwC Canada.

COVID-19 — a catalyst for growth in the digital health space

Prior to COVID-19, digital health startups across the globe saw impressive investment growth, with funding growing to $18.5B in 2019 from $1.6B in 2010. The challenges posed by the crisis have prompted broad-based development and adoption of digital health solutions — from telehealth to clinical intelligence to AI-enabled drug discovery — to help contain and combat the virus.

Provider- and patient-centric solutions have typically dominated Canada’s digital

health sector, but this year, life science R&D is gaining traction. The companies in this segment are now considered leaders as they raised $202.4M USD YTD in 2020.

This funding inflection is partially driven by the urgent need to develop effective diagnostics, vaccines, and treatments against it. Nevertheless, all signs point to the health ecosystem of the future continuing to align with the concept of 4P medicine, which means it will be predictive, preventative, personalized and participatory.

Nobody can affirm how the future system might look like in a few months. But some early signals show that virtual care, remote care monitoring, predictive analytics, data integration and privacy compliance, and digital mental health solutions are key areas to keep an eye on.

Click here to access the map.

About CB Insights

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