The players in SEA’s ailing healthtech landscape

Southeast Asia’s healthtech space seems to be under the weather in 2024.

The industry has recorded US$57 million in disclosed funding for the first three quarters this year, which was almost 85% lower than the amount raised by healthtech startups in the same period in 2023.

Looking at the full-year figures, last year was also the most successful year historically for healthtech funding, with startups raising US$452.9 million.

Notably, there were 24 deals in the first three quarters of 2024, down from 32 in the same period of 2023. This implies that the average check size has fallen, and there weren’t as many late-stage deals in 2024 compared to last year.

Indeed, the largest round this year raised just US$14.2 million. The deal was in April, when Vietnam-based Nhi Dong 315, which operates pediatric and maternity clinics, raised a series C round with participation from Singapore’s sovereign wealth fund GIC.

Additionally, half of all healthtech deals this year have been series A rounds or earlier. In total, these rounds accounted for US$37.3 million.

Early-stage rounds have dominated Southeast Asia’s overall tech investment landscape in the last 12 months as well, according to Tech in Asia data.

Lloyd Price, founder of healthtech advisory firm Nelson Advisors, said earlier this year that in general, the high valuations of tech startups that sprouted after the pandemic have driven “tourist” investors into healthtech.

These are investors who don’t necessarily have a deep understanding or expertise in the sector they are investing in.

As valuations were corrected and capital dried up, these tourists exited the sector. Meanwhile, the investors who stuck around became more cautious in choosing which startups to back.

However, Price noted that the healthtech sector can still attract investors, but likely only those who are more knowledgeable in the space.

In Southeast Asia, for example, Antler is the most active investor in health-focused tech startups in the region, having invested in 20 companies since its inception. This is true in 2024 too: of the 24 rounds so far this year, Antler invested in four.

Its latest investment in the space was in June this year, when it joined the US$1 million seed round of Sova Health, an India-based gut health platform.