Health Tech Is Growing, with Opportunities for Expansion into the US
The healthcare technology sector, also called health tech, is growing quickly all around the world. It is growing particularly quickly in the US, which creates opportunities for global health tech companies to expand into the US.
There are now 85 digital health unicorns, or private companies worth more than $1 billion, around the world, according to CB Insights. This is up from 57 in 2020. 77% of them are based in the US, and about half of them offer telehealth services.
Digital health funding has grown quickly. Global venture capital investment in digital health increased 79% in 2021 to a record $57.2 billion, according to CB Insights. A majority of this investment is in the US. In the US, investment in digital health increased 75% in 2021 to $37.9 billion, the highest level on record.
There is opportunity to expand into the US if you’re a health tech company because the US has an aging population with health issues. Six in ten US adults have a chronic disease, and four in ten US adults have two or more chronic diseases, according to the Centers for Disease Control and Prevention (CDC). US healthcare spending was $3.8 trillion in 2019, or $11,582 per capita, according to the American Medical Association. This means that there’s a large population in the US that needs health tech services.
The COVID-19 pandemic has spurred digital innovation in healthcare. Since people are staying at home to avoid getting COVID, there is increased demand for telehealth and being able to diagnose disease from home. For instance, the US-based company Curai Health provides 24/7 health support over text message. And Ro delivers medications, provides in-home lab tests and nurse visits, and hosts telehealth visits with doctors.
In the US, health tech unicorns listed by HolonIQ include Cityblock Health, a community health service provider; Noom, a weight loss app; Hinge Health, a digital physical therapy provider; and Ro, a telehealth company.
Global health tech unicorns include WeDoctor (GuaHao), an online health services provider in China; Ottobock, a prosthetics company in Germany; PharmEasy, an online pharmacy in India; and Insightec, a medical device company in Israel.
If you’re building a global health tech company, we at Alariss Global would love to talk. We match top US sales and business development talent with global companies and serve as the Employer of Record (EOR) so that companies don’t have to worry about legal compliance. If you’re interested, you can hire a US salesperson by signing up for our portal today.