May
03

Medical Devices and Digital Health in Southeast Asia

Medical Devices and Digital Health in Southeast Asia

Over $1.9 billion has been invested in the medical devices and digital health sectors in Southeast Asia since 2020. The medical devices and digital health sectors are driven by continuous technological advancements and innovations, which play a crucial role in shaping the future of the healthcare industry. 
This report provides a comprehensive analysis of investment activity in these two sectors. The data set analyzed focuses on capital deployment, transaction types, geographical distribution, and the largest deals within the industry over the period. By analyzing the data and trends from Q1 2020 to Q1 2023, this report explores the emerging trends and technologies shaping the current landscape of medical devices and digital health and what it means for the capital markets.
  • The medical device and digital health industry has received over $1.9 billion from investors with over 337 transactions at an average deal size of $141 million since Q1 2020.
  • The second quarter of 2021 saw the largest capital deployment of $426 million in the sector, driven by Sunway Healthcare Holdings, which saw the biggest investment raise of $181 million from Singaporean investor GIC.
  • Since the third quarter of 2021, investment numbers have remained relatively steady until Q1 of 2023, when we see a dip in investment. This could be due to the Silicon Valley Bank collapse in early 2023, which decreased venture capital funding and overall investment in technology-driven healthcare solutions.
  • Vinmec International Hospital is an operator of clinics and hospitals across Vietnam. Vingroup, its parent company, raised capital from Singaporean GIC for $203 million in December 2020. The company is using the proceeds to expand its medical footprint, focusing on healthcare infrastructure, research, and technology.
  • GIC was also behind the second largest deal, investing $181 million in Malaysian company Sunway Healthcare Holdings. They are accountable for 43% of the largest 10 deals in the last three years.
  • Indonesian healthtech company Halodoc raised significant funding in multiple rounds in recent years. In 2020, they raised $65 million in a Series B funding round, followed by another $80 million in a Series C funding round in 2021. Halodoc offers a telemedicine platform and a range of healthcare services, including appointment booking and medicine delivery.
  • Singapore is the leading recipient of funds in the sectors, having received $710 million in investment in the last three years. It accounts for 39% of the total funding in the region. Their modern and ever-growing healthcare ecosystem and infrastructure have attracted investment and fostered innovation in the medical devices sector.
  • Malaysia was the second largest recipient of funding with $419 million of inward investment, composing 23% of the total. An important fact in its success is the progress made by the Malaysian government in working towards streamlining regulations and improving the regulatory environment for medical devices and digital health. This helps facilitate the commercialization and adoption of new technologies, making Malaysia an attractive destination for investment in these sectors.
  • Vietnam surprisingly surpasses Indonesia with $286 million in inward investment. Vietnam has been investing in healthcare infrastructure development, including the establishment of medical centers and hospitals, enhancing the capacity for adopting and utilizing medical devices and digital health technologies, making it an attractive market for investors.
  • From 2020 to Q1 2023, 29% of medical devices and digital health investments were made by private equity firms with $546 million, accentuating the region’s growing strategic value.
  • Secondary transactions take up 25% of the total investment pool. As companies achieve successful exits or liquidity events through secondary transactions, it can signal positive prospects for future investors and attract more capital to the industry. Investors deployed $320 million through mergers and acquisitions within these sectors. Established companies enhance their market position, expand their product offerings, or gain a competitive advantage through domestic and international acquisitions.
The convergence of healthcare and technology has paved the way for digital health solutions and medical devices. The cross-border capital markets in the medical devices and digital health sectors in Southeast Asia have witnessed significant growth and investment in recent years. The region’s expanding healthcare market, favorable regulatory environment, and technological advancements have attracted the attention of investors and spurred a flurry of deals and partnerships.
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Apr
12

Cyber Security and Cloud Computing Transactions by US-Based Investors

Cyber Security and Cloud Computing Transactions by US-Based Investors

Since 2020, over $28 billion has been invested in cyber security and $59 billion in the cloud computing sectors by US-based investors.
This Jahani and Associates report on cyber security and cloud computing transactions by US-based investors provides valuable insights into the investment trends and opportunities in these rapidly evolving industries. The report covers the period from 2020 to Q2 2023, revealing significant capital deployment, peak investment periods, and country-specific preferences for both sectors.
  • From 2020 to Q2 2023, US-based investors deployed over $28 billion into cyber security companies across 757 transactions, with an average deal size of about $38 million.
  • The highest investment peak occurred in Q3 2022, with $13 billion deployed in the sector. One noteworthy transaction during this time was the acquisition of SailPoint Technologies Holdings by Thoma Bravo, a private equity and growth capital firm, for $7 billion.
  • The most significant investment surge was in 2022, reaching $18 billion in total. This upswing can be attributed to a series of acquisitions done by Thoma Bravo for more than $10 billion in attempts to consolidate the market, and a range of other factors, including geopolitical and economic events such as the start of the Russian war with Ukraine (increase in cyberattacks) and the implementation of new regulations like the Strengthening American Cybersecurity Act (SACA) and Bipartisan Infrastructure Law (BIL). Those factors led to a rise in cyber security adoptions within organizations, particularly in the US, which has increased interest from US investors.
  • With merger and acquisitions (M&A) transactions being the highest, US-based investors deployed $20 billion in the cyber security sector through 372 deals in M&A, indicating a dynamic and well-established market for strategic acquisitions and significant industry consolidation.
  • US private equity firms invested $7 billion in 170 deals, representing 22% of the total capital deployed. The abundance of private equity growth deals reflects the significant presence of well-established companies with proven track records in this sector.
  • Venture capitalists invested approximately $3 billion in the sector, with an average ticket size of $9 million, highlighting the growth of new market entrants and the appeal of early stage and high-growth companies.
  • Of the deals announced by US-based investors, 81% were deployed in cyber security companies located within the US during the period. Several factors led to that, such as the significant technological adoption, the advanced infrastructure, and the presence of key industry players in this country.
  • Israel is second in terms of capital funded in cyber security as it became one of the world’s largest centers of cyber security innovation. The country’s strong focus on national defense and government support has driven its rapid rise in this field. Three notable Israeli cyber security companies are Check Point, CyberArk, and Radware.
  • Only 11% of the announced deals were in countries other than the US and Israel, likely due to regulatory and geopolitical considerations. US-based investors may prefer focusing on more familiar and stable markets like the US and Israel, where they feel more confident about the legal and political landscape.
  • US-based investors allocated $59 billion in cloud computing companies over 650 transactions from 2020 to Q2 2023, averaging around $90 million per deal.
  • In Q3 2022, the sector witnessed its highest investment peak, reaching $23 billion. Notably, we can see a possible correlation between cyber security and cloud computing, evident from the peak in the cyber security sector during the same quarter. This explains the fact that organizations prioritize cloud-specific cyber security to maximize cloud computing benefits and protect digital assets, making both sectors appealing to investors.
  • The cloud computing sector saw significant consolidation and strategic activity, with $48 billion invested in 345 merger and acquisition deals. This large investment signifies the sector’s high value and attractiveness to major players seeking growth and increased market share.
  • US private equity firms invested $6 billion into this sector split over 121 deals, implying a stable and promising sector in terms of long-term growth prospects. 
  • Venture capitalists invested approximately $3 billion in 265 deals, signaling a thriving entrepreneurial ecosystem and substantial growth opportunities in the sector.
  • US-based investors prioritized domestic opportunities in this period, investing $47 billion (83%) within the United States, driven by established tech hubs, a mature ecosystem, and numerous innovative companies in the country.
  • Germany’s $6 billion investment in eight deals showcases its appeal to US-based investors, driven by a strong economy and tech-friendly environment. The region’s innovation potential attracts strategic partnerships for access to the European market.
  • Despite challenges in doing business there, China’s $2 billion investment in 48 deals highlights the vast potential of its cloud computing market, driven by a thriving tech industry and increasing adoption of cloud services.
  • In the period, $800 million was invested in the UAE, which is known for its growing tech sector and transformation into a knowledge-based economy. US investors are drawn to the region as a hub for innovation in the Middle East.
Overall the report highlights the dynamic nature of these industries, offering various investment opportunities for various players, from established firms seeking growth and market consolidation to venture capitalists supporting early stage innovations. As technology continues to drive global business transformations, understanding the investment landscape in cyber security and cloud computing is crucial for investors looking to capitalize on emerging trends and shape the future of digital innovation. The insights presented in this report serve as valuable guidance for decision-makers navigating the ever-evolving landscape of cyber security and cloud computing investments.
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