In March 2020 the world came to an economic and social standstill. Yet, despite this year-long deadlock that later rolled onto the present year, 2021 has been a record year for global venture capital funding. $288 billion was invested globally in startups in the first half of the year in comparison to the $300.5 billion invested in startups in 2020 [1].
There’s no coincidence that we’re seeing this growth following the COVID-19 pandemic [2]. New challenges mean new solutions, resulting in investment opportunities.
And while some industries have suffered, others have been able to innovate and triumph over the challenges presented to them, transforming their industries altogether— we see this occurring particularly in the healthcare and cybersecurity industries.
Issues that existed prior to the pandemic became painfully apparent. However, these challenges with cybersecurity, big data management, health insurance coverage, and telehealth brought forth new solutions that translated into plenty of venture funding and lucrative acquisitions.
For hospitals and other medical service providers to succeed in 2020, they needed to adapt to a rapidly changing remote environment.
This largely meant incorporating digital solutions provided by health-tech startups. These startups are combining different technologies like blockchain, IoT, AI, wearables, and big data analysis in innovative ways.
And their platforms are transforming the ways in which the healthcare industry operates. New technologies enable doctors to virtually follow up with patients via mobile or desktop applications.
Other innovations include portable, wearable monitors that provide physicians with real-time data for blood oxygenation and pressure. There also exists new tech to help detect the early stages of Alzheimer’s.
Venture Capital firms aren’t the only ones interested in the healthcare space. Large tech firms like Amazon and Apple are also looking to healthcare as the next growth frontier [3].
These firms have been making notable moves in the health care space through the acquisition of health-tech startups. These corporations are likely planning to revamp the entire healthcare system with their own unique branding and services.
Amazon, for instance, acquired startups like Pillpack and HealthCare Navigator. The company has since launched Amazon Care and received HIPAA compliance for the Echo [4].
The healthcare industry and its sectors are booming. Venture funding in the healthcare-related space reached $20.3B— exceeding 2020’s total year funding of $17B.
This makes the healthcare industry the second-largest venture-backed sector. Globally, the health market is forecasted to continue to grow to $240B by 2026 [5].
Aside from the logistical challenges remote work presents, the shift to a fully digital work environment also comes with digital threats.
Perhaps more so than any other industry, startups and corporations alike have become increasingly dependent on cybersecurity and data protection solutions.
And keeping company and employee data safe continues to be a top concern.
Government sectors have also invested heavily in end, network, and cloud security. As of August 2021, 45 states across the U.S. have introduced 250 bills dealing with cybersecurity [6].
These bills cover public, private, and government domains spanning issues related to infrastructure continuity, cybersecurity insurance, and cyber attack reporting.
The cybersecurity industry and its sectors doesn’t appear to be slowing down. Behind the scenes of our new digital norm exists an ongoing plethora of cybersecurity challenges— hackers, data leaks, phishing scams, misinformation, breaches, glitches, viruses, and ransomware attacks.
In fact, according to Cybersecurity Ventures, the cost of ransomware alone is forecasted to grow as high as $265 billion by 2031 [7].
Investing opportunities are not limited to VCs or large institutions. Accredited investors can also invest in the potential of these healthcare and cybersecurity startups.
And here at EquityBee, we want to make it easier for you to get in on this exciting action by utilizing our Wishlist feature.
The Wishlist feature allows you to add any startup companies you find interesting to your EquityBee wishlist. Simply add the startup of choice to your wishlist and you’ll be notified as soon as that company is added to our platform.
We encourage our community to use this feature and further, we encourage you to check out our blog to continue learning more about startup investing.
[1] https://news.crunchbase.com/news/global-vc-funding-h1-2021-monthly-recap/
[2] https://files.pitchbook.com/website/files/pdf/PitchBook_Q2_2020_
[3] https://www.opengrowth.com/article/why-apple-is-moving-into-the-healthcare
[4] https://www.cnbc.com/2021/03/17/amazon-is-expanding-amazon-care-telehealth-service-nationally-for-employees.html
[5] https://news.crunchbase.com/news/forecast-health-care-in-2021-will-focus-on-digitization-of-the-patient-experience/
[6] https://www.ncsl.org/research/telecommunications-and-information-technology/cybersecurity-legislation-2021.aspx
[7] https://www.zdnet.com/article/the-cost-of-ransomware-around-the-globe-to-go-beyond-265-billion-in-the-next-decade/
