Digital Health Ecosystem Key Insights in APAC (2021)

A recent analysis by Singapore’s Galen Growth states that “with 1,998 active ventures at the end of 2021, the global Digital Health ecosystem of ventures in APAC is growing at a 5-year CAGR of 7 per cent. Globally, 29 per cent of Digital Health ventures are headquartered in APAC, making it the second-largest ecosystem globally”.

The Galen Growth analysis further indicates that ‘Of the ventures incorporated before 2016 (after 2002), approximately 50 per cent have raised Series A funding or beyond. More than 15 per cent of digital health ventures incorporated between 2002 and 2012 have exited via acquisition or Initial public offering (IPO)”.

It should also be noted that in 2021, around 59 digital health ventures in APAC received a total of 156 regulatory approvals, as per the Galen Growth analytics. The study further discusses about the various domains of digital healthcare assets and some of the key findings are listed below.

● Digital HealthTech venture capital deployed in APAC was the strongest in the second and third quarters of 2021. Total funding continues to increase strongly in the region, closing the year at $8.7 billion in total venture capital, representing 18 per cent of the funding invested across the four global key regions.

● While 34 per cent of the venture funding in APAC was raised by ventures with

Disease Agnostic solutions, Oncology and Cardiovascular Diseases remained the highest-funded therapeutic areas for 2021. Gynaecology jumped for the first time into the TOP5 by raising $437.5 million in 2021. For the first time, Diabetes was not amongst the TOP5 most invested therapeutic areas.

● Despite the sharp decrease in total venture capital funding as compared to 2020, Oncology remained the most invested therapeutic area in

APAC in 2021. Around 15 percent of all ventures in APAC with a therapeutic focus are focused on Oncology. In the past 5 years, the venture volume in Oncology has grown by 18 per cent. Digital HealthTech venture volume distribution in Oncology estimated to be: China (45 per cent), South Asia (14 per cent), Northeast Asia (21 per cent), Southeast Asia (13 per cent), Oceania (6 per cent)

● Venture capital funding focused on Cardiovascular Diseases grew significantly in 2021. Around 11 per cent of all ventures in APAC with a therapeutic focus are focused on Cardiovascular Diseases. In the past 5 years, the venture volume in Cardiovascular Diseases has grown by 15 pe rcent. Cardiovascular HealthTech venture distribution: China (29 per cent), South Asia (18 per cent), Northeast Asia (31 per cent), Southeast Asia (14 per cent), Oceania (8 per cent)

● Medical Diagnostics, the second-highest funded cluster in APAC in 2021, captured 13 per cent of the venture funding and includes 10 per cent of the Digital HealthTech venture volume in APAC. The venture counts increased by 20 per cent over the past 5 years. Yet, venture capital funding in the Medical Diagnostics cluster has dropped in 2021 as compared to 2020. Significantly, funding in Series D & Beyond deals decreased sharply from approximately $600 million to $316 million. Series C and Early Stage deals were the only stages that raised more funding as compared to 2020. By deal volume share, Series C and Series D & Beyond deals continue to grow. Medical Diagnostic HealthTech venture distribution: China (38 per cent), South Asia (18 per cent), Northeast Asia (23 per cent), Southeast Asia (13 per cent), Oceania (9 per cent).