Turning away from the public markets, IPOs, SPACs and Palantir for a moment, would you like to discuss start-ups once again? I would. This morning, I read equity capital financing patterns for wellness-focused startups. Broadly, according to a brand-new report, these start-ups raised less money in the first half of 2020 than they did […] This early morning, I pored over venture capital financing patterns for wellness-focused startups., these start-ups raised less cash in the first half of 2020 than they did in the first two quarters of 2019. The Exchange checks out startups, markets and cash. Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.
Funding for mental-health focused start-ups increases in 2020 888011000 110888 As health start-ups drift typically, VC hotspots emerge Alex Wilhelm 7 hours Turning away from the public markets, IPOs, SPACs and Palantir for a moment, would you like to talk about startups again? I would. This morning, I read equity capital financing patterns for wellness-focused start-ups. Broadly, according to a new report, these start-ups raised less cash in the first half of 2020 than they performed in the first two quarters of 2019. Offer volume fell from nearly 600 in H1 2019 to simply under 500 in H1 2020, and dollars invested slipped from $6.1 billion to $4.6 billion in the very same timeframe. But, if we peer a bit deeper and look at the subcategories of wellness start-ups, interesting hotspots end up being clear. The Exchange checks out startups, markets and cash. You can read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday. Inside the sub-categories of wellness startups that CB Insights dug through while putting together the dataset, some, like physical fitness tech and sleep tech, saw fewer deals and dollars than they did in the first half of 2019. One particular varietal is doing very well this year: mental-health focused companies. The strong endeavor results that these startups have taped in 2020 are not totally due to a pandemic, an economic downturn and political discontent that’s causing more suffering than usual, though I ‘d be amazed if those elements didn’t provide a tailwind of sorts. Stepping back a couple of quarters, there’s a bit more to business side of mental-health startups that I wish to unpack. This morning, let’s remind ourselves about how start-ups like Calm and Headspace proved that their market was lucrative and big, review the venture capital information and see if the pattern of strong financial investment in the space is continuing in the existing quarter. We ought to see another unicorn or 2 out of the group, we reckon, prior to the eventual tech recession. Let’s work to understand where the category is today.
by RJ Shara | Aug 26, 2020 | Fundings and Exit, Startups | 0 comments
Recent Comments