In 2019, we can expect to hear a lot from two of the investment community’s favorite industries: digital health and biotechnology. Both industries experienced record-breaking years in 2018. Globally, over $11 billion was invested in biotechnology companies in 2018 despite a challenging Q4, shattering the previous record set in 2015. On the digital health side, $3.49 billion was invested in digital health startups in the US, equivalent to the annual National Healthcare Expenditure.
However, while these two industries are similar in their sustained growth and promise, they sit at very different stages in their maturity. Since the introduction of recombinant DNA in 1976, the biotech industry has seen enormous growth, and its innovations have become an integral component of our daily lives. In modern society, we are wholly dependent on genetically-engineered innovations and pharmaceuticals that biotech brought forth. Biotech has become ubiquitous, and often governs our lives in ways we can’t easily identify. From the medications we take, to the food we eat, to the detergent we clean with, and the plastics and fabrics we use, biotechnology innovation touches many facets of our daily routines.
Conversely, digital health just recently (<10 years) emerged as a profitable venture following the most recent tech boom that has led to rapid mobile app development, increased prevalence of data analytics, and the commercialization of personal IoT devices. Unlike biotech, we have yet to see digital health bee universally adopted. While companies such as Apple are pushing for the commercialization of digital health with moves such as integrating ECG capabilities into their newest Apple Watch, many hospitals and clinics are just beginning to implement digital health products into their workflows. Digital health is still an infant industry, but is full of potential.Read More