That sounds like a bubble

In the world of digital health, investors poured a record $3.4 billion into private startups in the first half of 2018, but the number of buyout deals and IPOs has been on the decline for two years. If that persists, VCs could be left holding the bag when reality sets in.

And they know that. Or at least the three VCs at the recent Health 2.0 conference do. According to MedCity News, a trio of investors from Canaan Partners, GE Ventures, and Sanofi Ventures all agreed that digital health is in a bubble at the moment, warning that the flow of deals is likely to slow down unless exits materialize.

But the sky, they added, is not falling. Things like big data and cloud-based technology may be a bit overhyped, but some of that stuff can actually improve patient outcomes, they said. And that means some of these startups can make it big.