Among the healthcare technologies venture firms be looking at most closely at in 2020, various artificial intelligence and machine learning applications are atop this list, of course. But so are more nuts-and-bolts tools like administrative process automation and patient engagement platforms, VCs say.
Other, more leading-edge technologies genomics-focused data and analytics, and even quantum computing are among the areas attracting investor interest this year.
"We expect 2020 to mark the first year where health IT venture firms will start to look at quantum computing technology for upcoming solutions," Dr. Anis Uzzaman, CEO and general partner of Pegasus Tech Ventures, told Healthcare IT News.
"With the breakthrough supremacy announcement from Google validating the technology and the subsequent launch of the service Amazon Braket in 2019, there is sure to be a new wave of entrepreneurial activity starting in 2020."
He said quantum computing technology holds a lot of promise for the healthcare industry with potential breakthroughs possible throughout the health IT stack from operations and administration to security.
Among the promising companies, Uzzaman pointed to Palo Alto-based QC Ware, a startup pioneering a software solution that enables companies to use a variety of quantum hardware platforms such as Rigetti and IBM to solve a variety of enterprise problems, including those specifically related to healthcare.
He also predicted artificial intelligence would continue to be at the forefront for health IT venture firms in 2020 as it becomes more clear which startups may be winners in their initial target sectors.
"There has been consistent growth of investment activity over the past few years into healthcare startups using artificial intelligence to target a range of areas from imaging to diagnostics," he said.
However, Uzzaman also noted regulation and long enterprise sales cycles have largely slowed the ability for these companies to significantly scale their revenues.
"Therefore, we anticipate 2020 will be the year where it will become clearer to health IT venture firms who will be winners in applying artificial intelligence to imaging, pathology, genomics, operations, diagnostics, transcription, and more," he said. "We will also continue to see moderate growth in the overall investment amount in machine learning and AI companies, but will see a notable decrease in the number of companies receiving an investment.
Uzzaman explained there were already some signs in late 2019 that there could be late in a short-term innovation cycle for artificial intelligence with many companies, particularly those applying machine learning and AI to robotics, shutting down.
"However, we anticipate many companies will reach greater scale with their solutions and separate themselves from the competition, which will translate into more mega funding rounds," he said.
Ezra Mehlman, managing partner with Health Enterprise Partners, explained that at the beginning of each year, the firm conducts a market mapping exercise to determine which healthcare IT categories are rising to the top of the prioritization queue of its network of hospital and health plan limited partners.
"In the past year, we have seen budgets meaningfully open for automation solutions in administrative processing, genomics-focused data and analytics offerings, aging-in-place technologies and, in particular, patient engagement platforms rooted in proven clinical use cases," he said. "We are actively looking at all of these spaces."
He pointed out that in 2018, more than $2 billion was invested into artificial intelligence and machine learning healthcare IT companies, which represented a quarter of the total dollars invested into digital health companies that year.
"We view this as a recognition of two things: the meteoric aspirations that the market has assigned to AI and machine learning's potential, and a general sense that the underlying healthcare data infrastructure has reached the point of maturity, where it is possible to realize ROI from AI/machine learning initiatives," he said.
However, he said Health Enterprise Partners is still waiting for the "breakout" to occur in adoption.
"We believe we have now reached the point where category leaders will emerge in each major healthcare AI subsector and the usage will become more widespread we have made one such investment in the clinical AI space in the last year," Mehlman said.
Heading into 2020, Mehlman said companies that cannot deliver high-six-figure, year-one ROI in the form of increased revenue or reduced cost will struggle, and companies that cannot crisply answer the question, "Who is the buyer and what is the budget?" will be challenged.
"If one applies these tests to some of the areas that have attracted the most healthcare VC investment--social determinants of health, blockchain and digital therapeutics to name a few the number of viable companies sharply drops off," he said.
Mehlman noted that while these sound like simple principles, the current environment of rapidly consolidating, budget-constrained hospitals, vertically integrating health plans, and big tech companies making inroads into healthcare has raised the bar on what is required for a healthcare startup to gain meaningful market traction.
Continued here:
Healthcare venture investment in 2020: Quantum computing gets a closer look - Healthcare IT News
- Mathematician breaks down how to defend against quantum ... - Phys.Org [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- Here Is Everything You Need to Know About Quantum Computers - Interesting Engineering [Last Updated On: March 18th, 2017] [Originally Added On: March 18th, 2017]
- Quantum Computing Market Forecast 2017-2022 | Market ... [Last Updated On: March 18th, 2017] [Originally Added On: March 18th, 2017]
- What is Quantum Computing? Webopedia Definition [Last Updated On: March 18th, 2017] [Originally Added On: March 18th, 2017]
- Quantum computing is about to disrupt the government contracts market - Bloomberg Government (blog) [Last Updated On: April 22nd, 2017] [Originally Added On: April 22nd, 2017]
- Scientists: We Have Detected the Existence of a Fundamentally New State of Matter - Futurism [Last Updated On: April 22nd, 2017] [Originally Added On: April 22nd, 2017]
- What Sorts Of Problems Are Quantum Computers Good For? - Forbes [Last Updated On: April 22nd, 2017] [Originally Added On: April 22nd, 2017]
- quantum computing - WIRED UK [Last Updated On: April 22nd, 2017] [Originally Added On: April 22nd, 2017]
- Inside Microsoft's 'soup to nuts' quantum computing ramp-up - Computerworld Australia [Last Updated On: April 29th, 2017] [Originally Added On: April 29th, 2017]
- Molecular magnets closer to application in quantum computing - Next Big Future [Last Updated On: May 15th, 2017] [Originally Added On: May 15th, 2017]
- The Bizarre Quantum Test That Could Keep Your Data Secure - WIRED [Last Updated On: May 18th, 2017] [Originally Added On: May 18th, 2017]
- IBM boosts power of quantum computing processors as it lays ... - www.computing.co.uk [Last Updated On: May 22nd, 2017] [Originally Added On: May 22nd, 2017]
- IBM makes leap in quantum computing power - ITworld [Last Updated On: May 22nd, 2017] [Originally Added On: May 22nd, 2017]
- Toward mass-producible quantum computers | MIT News - MIT News [Last Updated On: June 2nd, 2017] [Originally Added On: June 2nd, 2017]
- Purdue, Microsoft Partner On Quantum Computing Research | WBAA - WBAA [Last Updated On: June 2nd, 2017] [Originally Added On: June 2nd, 2017]
- Tektronix AWG Pulls Test into Era of Quantum Computing - Electronic Design [Last Updated On: June 2nd, 2017] [Originally Added On: June 2nd, 2017]
- Google to Achieve "Supremacy" in Quantum Computing by the End of 2017 - Big Think [Last Updated On: July 1st, 2017] [Originally Added On: July 1st, 2017]
- Quantum Computing Becomes More Accessible - Scientific American [Last Updated On: July 1st, 2017] [Originally Added On: July 1st, 2017]
- Qudits: The Real Future of Quantum Computing? - IEEE Spectrum - IEEE Spectrum [Last Updated On: July 1st, 2017] [Originally Added On: July 1st, 2017]
- Alkermes and IBM's quantum computing. Who'll be the big winner? Malcolm Berko - Durham Herald Sun [Last Updated On: July 6th, 2017] [Originally Added On: July 6th, 2017]
- Quantum Computers Made Even More Powerful with New microchip generating 'Qudits' - TrendinTech [Last Updated On: July 8th, 2017] [Originally Added On: July 8th, 2017]
- Quantum Computing Record Broken - Wall Street Pit [Last Updated On: July 8th, 2017] [Originally Added On: July 8th, 2017]
- Technique for measuring and controlling electron state is a ... - UCLA Newsroom [Last Updated On: July 9th, 2017] [Originally Added On: July 9th, 2017]
- Quantum cheques could be a forgery-free way to move money - New Scientist [Last Updated On: July 10th, 2017] [Originally Added On: July 10th, 2017]
- Quantum-computer node uses two different ion species - physicsworld.com [Last Updated On: July 10th, 2017] [Originally Added On: July 10th, 2017]
- Quantum Computers vs Bitcoin How Worried Should We Be? - The Merkle [Last Updated On: July 10th, 2017] [Originally Added On: July 10th, 2017]
- Why you might trust a quantum computer with secretseven over ... - Phys.Org [Last Updated On: July 12th, 2017] [Originally Added On: July 12th, 2017]
- Physicists Take Big Step Towards Quantum Computing and ... - Universe Today [Last Updated On: August 1st, 2017] [Originally Added On: August 1st, 2017]
- Quantum Computing Market Worth 495.3 Million USD by 2023 | 08 ... - Markets Insider [Last Updated On: August 10th, 2017] [Originally Added On: August 10th, 2017]
- China uses a quantum satellite to transmit potentially unhackable data - CNBC [Last Updated On: August 10th, 2017] [Originally Added On: August 10th, 2017]
- Blind quantum computing for everyone - Phys.org - Phys.Org [Last Updated On: August 12th, 2017] [Originally Added On: August 12th, 2017]
- Quantum Computing Is Real, and D-Wave Just Open ... - WIRED [Last Updated On: August 12th, 2017] [Originally Added On: August 12th, 2017]
- Machine learning tackles quantum error correction - Phys.Org [Last Updated On: August 15th, 2017] [Originally Added On: August 15th, 2017]
- Quantum Internet Is 13 Years Away. Wait, What's Quantum Internet? - WIRED [Last Updated On: August 15th, 2017] [Originally Added On: August 15th, 2017]
- Physicists Have Made Exotic Quantum States From Light - Futurism [Last Updated On: August 16th, 2017] [Originally Added On: August 16th, 2017]
- $495.3 Million Quantum Computing Market 2017 by Revenue Source, Application, Industry, and Geography - Global ... - PR Newswire (press release) [Last Updated On: August 18th, 2017] [Originally Added On: August 18th, 2017]
- How quantum mechanics can change computing - The Conversation US [Last Updated On: August 23rd, 2017] [Originally Added On: August 23rd, 2017]
- Introducing Australia's first quantum computing hardware company - Computerworld Australia [Last Updated On: August 23rd, 2017] [Originally Added On: August 23rd, 2017]
- IEEE Approves Standards Project for Quantum Computing ... - insideHPC [Last Updated On: August 23rd, 2017] [Originally Added On: August 23rd, 2017]
- Commonwealth Bank investing in Australia's first quantum computer company - Which-50 (blog) [Last Updated On: August 25th, 2017] [Originally Added On: August 25th, 2017]
- How quantum mechanics can change computing - San Francisco ... - San Francisco Chronicle [Last Updated On: August 25th, 2017] [Originally Added On: August 25th, 2017]
- Quantum Computing Is Coming at Us Fast, So Here's Everything You Need to Know - ScienceAlert [Last Updated On: August 27th, 2017] [Originally Added On: August 27th, 2017]
- Quantum computing event explores the implications for business - Cambridge Network [Last Updated On: August 30th, 2017] [Originally Added On: August 30th, 2017]
- Microsoft's Aussie quantum computing lab set to scale up next-gen ... - ARNnet [Last Updated On: September 7th, 2017] [Originally Added On: September 7th, 2017]
- An Entirely New Type of Quantum Computing Has Just Been Invented - Futurism [Last Updated On: September 7th, 2017] [Originally Added On: September 7th, 2017]
- Microsoft just upped its multi-million bet on quantum computing - ZDNet [Last Updated On: September 7th, 2017] [Originally Added On: September 7th, 2017]
- Here's what quantum computing is and why it matters [Last Updated On: October 6th, 2017] [Originally Added On: October 6th, 2017]
- What will you actually use quantum computing for? | ZDNet [Last Updated On: October 11th, 2017] [Originally Added On: October 11th, 2017]
- Quantum Computing | Intel Newsroom [Last Updated On: October 13th, 2017] [Originally Added On: October 13th, 2017]
- Intel Takes First Steps To Universal Quantum Computing [Last Updated On: October 13th, 2017] [Originally Added On: October 13th, 2017]
- Qudits: The Real Future of Quantum Computing? - IEEE Spectrum [Last Updated On: October 13th, 2017] [Originally Added On: October 13th, 2017]
- quantum computing - engadget.com [Last Updated On: October 13th, 2017] [Originally Added On: October 13th, 2017]
- Quantum computing - news.microsoft.com [Last Updated On: November 1st, 2017] [Originally Added On: November 1st, 2017]
- IBM's processor pushes quantum computing ... - engadget.com [Last Updated On: November 16th, 2017] [Originally Added On: November 16th, 2017]
- Yale Professors Race Google and IBM to the First Quantum ... [Last Updated On: November 16th, 2017] [Originally Added On: November 16th, 2017]
- Quantum Computing Is the Next Big Security Risk | WIRED [Last Updated On: December 8th, 2017] [Originally Added On: December 8th, 2017]
- Microsoft offers developers a preview of its quantum ... [Last Updated On: December 12th, 2017] [Originally Added On: December 12th, 2017]
- New silicon structure opens the gate to quantum computers [Last Updated On: December 14th, 2017] [Originally Added On: December 14th, 2017]
- Quantum Computing Explained | What is Quantum Computing? [Last Updated On: December 21st, 2017] [Originally Added On: December 21st, 2017]
- What is Quantum Computing? | SAP News Center [Last Updated On: December 23rd, 2017] [Originally Added On: December 23rd, 2017]
- Is Quantum Computing an Existential Threat to Blockchain ... [Last Updated On: December 25th, 2017] [Originally Added On: December 25th, 2017]
- IBM puts its quantum computer to work in relaxing, nerdy ASMR ... [Last Updated On: January 8th, 2018] [Originally Added On: January 8th, 2018]
- Quantum computing is going to change the world. Here's what ... [Last Updated On: January 8th, 2018] [Originally Added On: January 8th, 2018]
- The Era of Quantum Computing Is Here. Outlook: Cloudy ... [Last Updated On: January 26th, 2018] [Originally Added On: January 26th, 2018]
- What is quantum computing? - Definition from WhatIs.com [Last Updated On: February 5th, 2018] [Originally Added On: February 5th, 2018]
- Senate bills would make quantum computing a priority [Last Updated On: June 10th, 2018] [Originally Added On: June 10th, 2018]
- Two Quantum Computing Bills Are Coming To Congress [Last Updated On: July 5th, 2018] [Originally Added On: July 5th, 2018]
- Quantum Computing Market Research Report- Forecast 2022 | MRFR [Last Updated On: August 1st, 2018] [Originally Added On: August 1st, 2018]
- What Is Quantum Computing? The Complete WIRED Guide | WIRED [Last Updated On: August 22nd, 2018] [Originally Added On: August 22nd, 2018]
- Quantum Computing | USRA [Last Updated On: August 30th, 2018] [Originally Added On: August 30th, 2018]
- The quantum computing race the US cant afford to lose [Last Updated On: September 3rd, 2018] [Originally Added On: September 3rd, 2018]
- The reality of quantum computing could be just three years ... [Last Updated On: September 12th, 2018] [Originally Added On: September 12th, 2018]
- US takes first step toward a quantum computing workforce ... [Last Updated On: September 17th, 2018] [Originally Added On: September 17th, 2018]
- China bet big on quantum computing. Now the ... - money.cnn.com [Last Updated On: September 17th, 2018] [Originally Added On: September 17th, 2018]
- China bet big on quantum computing. Now the US races to ... [Last Updated On: October 26th, 2018] [Originally Added On: October 26th, 2018]
- A new type of quantum computer has smashed every record ... [Last Updated On: December 21st, 2018] [Originally Added On: December 21st, 2018]
- IBM unveils its first commercial quantum computer [Last Updated On: January 9th, 2019] [Originally Added On: January 9th, 2019]
- IBM thinks outside of the lab, puts quantum computer in a box [Last Updated On: January 11th, 2019] [Originally Added On: January 11th, 2019]
- Quantum Computing | The MIT Press [Last Updated On: January 11th, 2019] [Originally Added On: January 11th, 2019]
- CES 2019: IBM's Q System One Is the Rock Star Quantum ... [Last Updated On: January 13th, 2019] [Originally Added On: January 13th, 2019]