A recent analysis of 944 digital health startups founded between 2015 and 2024 on R2GConnect provides insights into the average time required to secure external funding. The analysis excludes self-funded companies, bootstrapped companies and those with no external investment.
In summary: It takes 5 years to raise $5 million, 7 years to raise $10 million and 8.5 years to raise $15 million.
Breakdown:
=>Successful fundraisers launched in 2020 have raised $5.5 million to date. In other words, it takes about 5 years (from 2020 to 2024) for companies to secure $5 million in funding from investors.
=>Healthtech cmpanies established in 2018 have raised an average of $10.1 million by 2024, suggesting that it takes approximately 7 years (from 2018 to 2024) to raise $10 million.
=>Healthtech companies founded in 2017 have secured $13.1 million, and those started in 2016 have raised $16.9 million. This points to an average of 8.5 years to reach $15 million.
=>If healthtech companies manage to raise investor money in the first year, they generate an average of $1M.
See other Insight Notes from R2GConnect on share of successful fundraisers.