Manatt Digital and Technology Leader Lisa Suennen is quoted in STAT on the state of the digital health space as venture capital continues to invest at record pace. The publication noted that there are risks in the business of investing in an all-in-one health care platform in this hypercompetitive era, with one challenge for investors being able to distinguish true platforms from just collections of point solutions with no unified backend. “It’s very clear that many digital health companies don’t have a ‘company’s’ worth of products. They are a product but being financed as a company,” Suennen explained. “This is unsustainable for both investor and invested, and thus the roll-up dance has begun.”
She also urged investors to proceed with caution as the unprecedented levels of capital flooding the space make it difficult to determine which companies are actually worth their towering valuations.
Read the article here.