Asian healthtech deals hit $2.5b

$595m went to firms geared towards health management solutions.

Healthtech funding for H1 2019 in Asia Pacific reached $2.5b across 140 deals, the 2nd largest in the world after the USA, according to Galen Growth Asia.

When taking into account the $1.1b initial public offering (IPO) by Ping An Hao Daifu (Good Doctor) in 2018, total investment value surged 61% from H1 2017. Otherwise, overall investment value dropped 15% YoY.

In Q2 2019, total investment value was at $1.29b, the eighth consecutive quarter with $1b above for healthtech in Asia Pacific. Meanwhile, the deal count dropped 50% YoY to 59, continuing a downward trend since Q2 2018.

The average deal size increased 38% YoY to $21.9m excluding the outlier. The cumulative deal value since Q2 2016 was $16.9b.

The most funded category by value in H1 was health management solutions at $595m, followed by online marketplace and medical diagnostics at $493m and $362m respectively.

Health management solutions also gained the most number of deals at 21, followed by medical diagnostics at 18 and a tie between population health management and wellness at 17.

Additionally, early stage deal shares by volume shrank 33% YoY at 25%, whilst the share of late stage deals grew 83%.

In H1, early stage deals likewise decreased 33% YoY at about 25% by volume. Its average deal value fell 48% to $530,000.

Growth stage deals held 69% of total funding by value, whilst late stage deal value dropped 45% YoY to $480m.

Over half or 51% of healthtech startups in Asia Pacific are in their early stage, a 3% increase from H2 2018.

Galen Growth Asia noted that investors in healthtech have been increasingly bullish about digital health in Asia Pacific, and will invest in 2019 subject to improving their deal flow access.