The financial outlook for the digital health sector is less than ideal, characterized by lower funding amounts, shrinking valuations, dwindling profitability and the collapse of Silicon Valley Bank. During a recent conference panel, four healthcare VCs discussed their reactions to this. They explained why the market has switched its focus from growth to value, as well gave advice to startups about what they need to know in this changing environment.

Last year’s digital health investment trends have left some startups feeling uneasy about their ability to raise capital in the new funding environment. Venture capitalists think companies that have a demonstrable return on investment and serve multiple stakeholders will probably have the easiest time securing capital, while point solutions and startups in crowded markets will face a tougher environment.

Covid-19 showed how technology can upend the old ways of clinical trials. Panelists at MedCity’s INVEST conference said it’s highlighting the importance of improving clinical trial diversity so that tests of new therapies and vaccines reflect the population of patients that they will treat in the real world.

In a panel discussion during MedCity INVEST Thursday, investors discussed how the Covid-19 pandemic and social distancing requirements have impacted the way they interact with companies.

Gain insights from the perspectives of healthcare investors from Maverick Ventures, Cultivation Capital, Advocate Aurora Health and Flare Capital on investment trends in 2020 at the online conference July 20-24. Register now and save.

How have traditional venture capital and strategic investors adjusted to the reality of Covid-19? Learn how investment goals and strategies are being reshaped in this panel discussion. Register now for the Earlybird rate.

“The funding allows us to deepen the clinical capabilities of the software without slowing our geographic expansion,” said Collective Medical CEO Chris Klomp.