After years of pouring money into disruptive technologies in the financial services industry, venture capital firms are turning their attention to the health care ecosystem as the pandemic upends traditional ways of delivering health care. On Sept. 29, SCP Co. registered as a special purpose acquisition company aiming to raise $230 million focused on finding a health tech acquisition. Two days later, another SPAC, the Oaktree Acquisition Corp., announced the purchase of Hims, a virtual health and wellness provider. The deal is expected to close in the fourth quarter at an estimated enterprise value of $1.6 billion.
Source: PitchBook, RSM US
Overall, the opportunity is significant. Since the end of the financial crisis, venture capital firms have invested $232.7 billion in the sector known as health tech, according to PitchBook data compiled by RSM. This compares to the $930.8 billion invested over the same time in fintech. When adjusted for the relative contribution of each sector to gross domestic product, the financial service sector has drawn approximately 10 times the investment into disruptive innovation as the health care sector.