Key Takeaways from the FY2023 Industry Sentiment Survey

• Companies are diversifying funding sources
  An increasing number of companies are shifting gears away from venture capital funding and instead looking to grants (56% compared to 42% in FY22), angel & high net worth individuals (51% compared to 41% in FY22) and accelerator/incubators (31% compared to 12% in FY22), while a smaller proportion is looking to venture capital (41% compared to 47% in FY22).
• International investors beat local investors for company confidence
  Confidence levels in local investors is improving, but still remains relatively low overall at just 20% compared to 38% for international investors.
• Despite low investor confidence, companies are looking to raise
  85% of companies were hoping to raise further finance in the future, compared to 80% in FY22. Further, 31% of companies said they were hoping to raise larger amounts of funding in the next 12 months, looking at raises of $3M to $10M, up from 23% of companies in FY22.
• Companies set their sights on the US market
  The lucrative US market remains the priority for both near-term international expansion (30% of companies) and future international expansion (65% of companies).
• Evolving technology is changing the face of digital health
  Digital health is not immune to the phenomenon of artificial intelligence and machine learning, with 22% of companies now claiming to use AI or ML as their primary technology.
• Post-pandemic transformation is here to stay
  The digital health sector is anticipating significant future growth opportunities in remote monitoring (up 28%) and wearable technologies (up 58%), aligned to the trend of shifting care from the clinic to the home.