Thought Leadership | Healthcare

Digital Health’s Dot Com Moment – Peril and Promise

By: Jon Swope Published September 29, 2022

Revisiting the dot com bubble burst of the early 2000s provides valuable insights when evaluating the current state of the Digital Health market. Over the past decade, the growth of the digital health sector has offered the promise of much needed innovation across healthcare to fulfill the triple aim of improving outcomes, optimizing costs, and engaging the consumer. Despite recent underperformance, the key megatrends at the intersection of technology and healthcare will prevail and support capital inflows and M&A activity in the sector. While historical perspective favors the brave, challenging market conditions persist and foretell a perilous road ahead. As observed after the dot com crash, the recent digital health market downturn offers opportunities for consolidation and sets the groundwork for outsized investor returns.

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