North American investment in venture capital-backed health technology and digital health companies hit a record through the first 10 months of the year, outpacing all of 2019 with two months to go. The total venture capital raised by health tech so far this year reached $12.2 billion, compared with $10.7 billion for all of 2019.
Digital health technologies have been the target of investors for some time now, but the pandemic has accelerated the adoption of these technologies and has spurred increased investment in startups developing transformational solutions.
The prohibition of elective procedures and changes to the virtual health care regulatory and reimbursement environments have spurred patients and physicians to use telehealth services for the first time. Other areas include virtual clinical trials, which promise to decentralize and lower their cost, and remote patient monitoring, which allows for such procedures outside of traditional, high-cost clinical settings.
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