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Launch Report: Healthcare IT

Q4 2022

Launch Report: Healthcare IT

March 2, 2023

This report was reuploaded on April 27, 2023, to update an exit value on pages 11 and 20.

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Healthcare IT's pain points 

VC and PE investment in healthcare IT plummeted in Q4 as cost inflation strained health systems, the funding market faltered, and valuations were rocked. But despite the bumpy road ahead, healthcare IT presents a long-term opportunity to drive delivery efficiencies and care model innovation.  

Our Q4 2022 Launch Report: Healthcare IT debuts our coverage of the vertical, giving a snapshot of the changing funding environment and of the light at the end of the bear market tunnel. 

Key takeaways include:

  • Cumulative VC deal value in healthcare IT fell 61.7% in Q4 from the previous quarter to $451.3 million. PE investment in the vertical had a more muted drop-off, with a 46.2% decline in deal count compared to Q3 2022. 
  • The vertical encountered tough headwinds in 2022: Weakness in the provider end market led to difficult sell cycles, volatility in the VC funding market, and a sluggish exit market tying up LP capital. 
  • But opportunities for innovators remain: We identify limited interoperability in healthcare data, antiquated technology systems, and shifts in the care paradigm toward patient-centricity as three crucial entry points to watch. 

Table of contents
Vertical overview 3
2022 timeline 4
Healthcare IT landscape 5
Healthcare IT VC ecosystem market map 6
Healthcare IT PE ecosystem market map 8
VC and PE activity 10
Segment overview 13
EHRs and clinical information 14
Revenue cycle 23
Operations 32
Analytics 42
Infrastructure and compliance 51
Appendix 60