Milwaukee Business Journal: Investments in telehealth, mental health reach record highs amid Covid-19

by | Jun 22, 2020 | NEWSROOM, Tech Council News

Amid the global coronavirus pandemic, private equity investments in telehealth and mental health companies reached an all-time high in the first quarter of 2020, according to a new report from CBInsights.

The use of telehealth increased during the first half of the year as managed care companies and health care providers expanded their coverage and emphasis on it as a safer alternative to in-person visits. According to CBInsights, patients’ usage of telehealth will likely decrease after the pandemic but remain above pre-pandemic levels.

Investments in mental health startups reached $576 million in Q1 2020, which was 60% higher than the previous quarterly record. In particular, employer-focused mental health startups received significant investments.

Overall funding in health care companies increased 4% from the fourth quarter of 2019, while the number of deals fell by 6%. Artificial intelligence, medical devices, women’s health and regenerative medicine all saw increases in Q1 2020 from Q4 2019 in the dollar volume of deals. The number of deals increased as well in health care AI and regenerative medicine but decreased in medical devices and women’s health. Read the full story here.