News and Insights
Galen Growth and FINN Partners Share Data and Insights in the Massachusetts Digital Health Ecosystem Report
April 11, 2023
Digital Health Funding in Massachusetts Continues to Thrive Led by Investment in Key Therapeutic Areas
FINN Partners & Galen Growth will Host Digital Health Investment Summit in Boston
NEW YORK, April 11, 2023 – Galen Growth, the leading digital health, data-driven market intelligence company, and FINN Partners, a global integrated marketing services agency, announced the creation of the “Digital Health in Massachusetts 2022 Year-End Report,” a regional analysis of their more extensive Digital Health Ecosystem Report. The report examines shifts in digital health investment in Massachusetts and the New England region, drawing input from more than 300 million data points and over 13,000 ventures.
FINN Partners and Galen Growth will host the first MA Digital Health Investment Summit on April 11, 2023 highlighting regional digital health investment and where they will present key insights from the report highlighting the leading status of the region. The event will include a discussion on the trends impacting New England Regional digital health investment in 2023. Additional quarterly events as part of FINN Partner’s Conversations in Health Boston Edition program are anticipated throughout the coming year.
Total investment dollars in digital health in Massachusetts took a dive in 2022, down 59% from 2021 to $2.62B in total venture funding. Massachusetts ventures may be well-prepared to be resilient against the funding downturn based on venture capital funding history far outperforming the regional average.
Private equity and business development dollars continue to flow toward the digital category directed toward disease-agnostic opportunities followed by specific therapeutic categories with oncology and mental health leading. Presenting strong clinical evidence is important in digital health; and MA ventures with a strong evidence signal include remote devices and patient solutions followed closely by clinical trials and research solutions.
“What Massachusetts lacks in Digital Health ecosystem size versus New York or California, it makes up for in ecosystem quality,” said Julien de Salaberry CEO and Galen Growth co-founder. “By leading the field in building clinical evidence and with most of its ventures having successfully raised funding in the past 18 months, the Massachusetts ecosystem is one to watch going forwards.”
Key report conclusions include:
- 9% of Digital Health ventures were founded in Massachusetts, making it the 3rd largest ecosystem in the U.S. after CA and NY.
- Massachusetts ventures appear to be well-financed with 83% raising capital in either 2021 or 2022.
- Massachusetts ventures are tackling the interoperability challenge in Digital Health head-on, with 22% of the Digital Health ventures in the state focused on the Health Management Solutions cluster, the largest of the clusters, followed by research solutions, medical diagnostics, patient solutions then telemedicine venture clusters.
- Oncology moved into the top position in Massachusetts as the most invested therapeutic area in 2022, pushing Mental Health into second place.
The FINN Global Digital Health Group has been working with Galen Growth data and research professionals to chart the complex and often fragmented digital health landscape, emerging market trends, areas of growth and innovation, and look beyond equity funding to explore what’s expected to happen in this fast-paced sector. The combined team looks beyond the ‘hype’ of digital to map the priority and practical opportunities for decision-makers.
“The rapidly expanding Digital Health ecosystem in Massachusetts highlights the importance of tackling healthcare challenges head-on to optimize the well-being of all individuals,” said Ritesh Patel, senior partner, Global Digital Health Lead FINN Partners. “FINN is proud to collaborate with Galen Growth to take a deeper dive into the digital health landscape which we believe will help inform the choices providers, payers, product innovators and patients must make in the coming years.”
“Boston has one of the nation’s great health centers with numerous academic medical centers, world-class medical talent and innovation-centered private equity,” notes Jeff Freedman, founder and managing partner at Boston-headquartered Small Army, a FINN Partners Company. “That medicine, engineering and investment have combined in Boston is no surprise – what is compelling is that the region continues to lead the nation in ideas and inventions that can be tested nearby and then reach the world.”