A record $266 million has been poured into health tech in Southeast Asia last year, more than double what was invested before, according to industry researcher Galen Growth.
In its report on health tech investment in 2019, Galen also noted that Singapore and Indonesia scored the bulk of the investments. However, even as Singapore maintained its leadership in terms of the share of deal volume, at 54 per cent, there were fewer deals overall as neighbouring countries – such as Indonesia, Malaysia, Vietnam and Myanmar – attracted more investments.
India was the other market that saw record deal flow during the year, with $723 million in funding deployed. That was about a third higher than the year before, even though there were fewer deals. The market’s performance was likely buoyed by PharmEasy’s easing of $220 million in November
Overall, the Asia Pacific region recorded $5 billion worth of funding across 340 deals, out of $15 billion globally in 2019.
The amount of funding was 27 per cent down from 2018, but still 25 per cent CAGR since 2014. And, ticket sizes have grown, as more funding was deployed in the growth stages. The average deal size, according to Galen, was $14.6 million, or 12 per cent bigger than in the year before, and more than 50% bigger than in 2017.
As Galen noted, while early-stage and Series A deal activity has slowed, Series B deal values have grown, and account for about a third of total funding so far.
The report also noted that the most-funded health tech start-ups are in online marketplaces, which garnered $815 million in funding. Medical diagnostics and health management systems were the next two sub-sectors that secured the most funding. Indeed, those two sub-sectors saw the most number of deals during the year.
Meanwhile, the most active investors were still those from mainland China, even as deal flows slowed. Tencent Holdings, Sequoia Capital and IDG Capital were the top three most active, with nine, nine and six deals each, respectively.