Canadian Health Tech Funding and Trends Report – 2024 Year in Review

Welcome to our third annual report where we examine the Canadian health tech investment landscape across public and private markets and provide an overview of key current trends we are seeing.
2024 was another challenging year for Canadian health tech, with venture funding dropping 18% compared to 2023, ending at $700M across 287 deals. Early-stage investments were hit hardest, with funding amounts down 30% and deal counts down 26%. Investment activity remained front-loaded, with Q1 and Q2 accounting for the largest share of deals. Disclosure rates also declined by 18%, indicating a trend toward less transparency.
On the exit front, there was an increase in M&A activity, though most deals were undisclosed, raising questions about the strategic quality. The trend of take-private transactions persisted in both the US and Canada, with notable deals in revenue cycle management and digital front doors.
No standout categories emerged in 2024, underscoring the absence of areas with clear growth potential from the investors’ perspective. While AI remained a key focus, its share of health tech deals declined relative to 2023. AI applications are progressing through the adoption curve in healthcare, starting with life sciences and moving into workflow and operations. Although trends in healthcare evolve slowly, certain technologies are advancing quickly, warranting close attention as they either establish themselves or fade.
While 2023 was expected to be a year of reset, 2024 emerged as a year of recalibration. As purchasing budgets begin to unlock, the market is increasingly favouring solutions that deliver measurable ROI, offer seamless integration, and provide robust customer support—key factors driving continued funding. Read the report to learn more.
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