Summit Health Advisors

Last year was a fairly dismal time for digital health companies in the public markets. Yet those that leveraged network effects handily outperformed those that did not. Platform businesses in healthcare were more valuable, more scalable, higher growth and closer to profitability. Take a look at our annual report on network effects in healthcare for more analysis and insights. https://lnkd.in/gVpnhD4C

The top 10 network effects deals in healthcare raised a combined $1.4 billion in 2024, up 43% from the previous year’s top 10. These companies have embraced platform business models to solve some of the most formidable challenges in healthcare, from behavioral health to cancer care to affordability. Check out our 2025 State of Healthcare Platforms Report for more insights into the most dominant network effects businesses and investors in healthcare. https://lnkd.in/gVpnhD4C

The year’s top digital health investors recognize the unfair advantages of network effects in healthcare. While building or investing in a platform business is not for the faint of heart, those that do stand to create tremendous value and realize unmatched returns. Digital health companies that leverage network effects outperform those that do not, with: ?- 25% greater capital efficiency ?- 2.1x higher valuation premiums ?? ?- 1.8x superior exit rates ?- $16.71 cash-on-cash return for every $1 invested at Seed Check out the 2025 State of Healthcare Platforms Report to access more analysis into the performance of digital health platforms. https://lnkd.in/gVpnhD4C The firms below were the most active platform investors in 2024: General Catalyst Techstars Andreessen Horowitz AlleyCorp Everywhere Ventures FCA Venture Partners Alumni Ventures First Trust Capital Partners The Blue Venture Fund City Light Capital Flare Capital Partners Frist Cressey Ventures Plug and Play Tech Center Echo Health Ventures Optum Ventures SignalFire | Elektra Health Watershed Health Waltz Health Praia Health Heartbeat Health MD Ally | 911 Network Navigation Thatch Thyme Care Devoted Health Caresyntax

The data is in: investments in digital health platforms realize a 17x cash-on-cash return! For every dollar invested into a platform business at the Seed stage, investors realize a $16.71 return by Series D, which is 2.6x greater than a dollar invested into a pure software business. Further, digital health platforms grow from Seed to Series D in 90 months on average, while it takes a non-platform company 104 months. For more novel analysis and insights, check out our new 2025 State of Healthcare Platforms Report! https://lnkd.in/gVpnhD4C This year’s annual report on healthcare network effects features: - Novel analysis into the performance of digital health platforms over the past decade - Unique insights into scaling a platform business from some of today’s leading CEOs (Kyna Fong, PhD at Elation Health, Kyle Kiser at Arrive Health and Brad Kittredge at Brightside Health) - In-depth network effects case studies on today’s most dominant health tech businesses (Epic, Doximity and Tempus AI)

When selling digital health solutions, customer advocacy and outcomes are more important than published evidence. In a survey of 100+ digital health leaders, over half of respondents said that customer testimonials and outcomes were the most vital types of proof required to drive sales. On the other hand, only a third of respondents said that peer-reviewed publications were needed to support procurement. (Granted this does vary by solution type, company stage and market). So, building strong customer relationships and delivering value is paramount, especially at a time when market crowdedness is at an all-time high and differentiation is at an all-time low. Check out our Digital Health Go-to-Market Report for more insights! https://lnkd.in/g5v8ZyY4

Excited to see our new research into the digital health landscape featured in Fierce Healthcare and MedCity News! We surveyed over 100 digital health leaders to get new insights into how they're overcoming go-to-market challenges and spurring growth in 2025. Check out the story in Fierce: https://lnkd.in/gKA6sQCA And the story in MedCity: https://lnkd.in/gFjn4f8k Or go straight to the full report: https://lnkd.in/gjR7V_W4

While most digital health leaders are greatly optimistic about 2025, next year could prove to be a make-or-break year for many companies. Why? Key findings from our new Digital Health Go-to-Market Report:? - 4-in-5 digital health executives are planning to raise capital in 2025 - 44% of executives fear heightened competition from large incumbents - 41% of executives are worried about cash flow and making payroll? - 38% of executives say their revenue is overdependent on too few customers Check out our inaugural survey of more than 100 digital health leaders to learn more about the realities of taking a digital health product to market. https://lnkd.in/g5v8ZyY4 Our report provides insights into the top go-to-market trends and strategies for digital health firms, including competitive positioning, pricing strategy, sales and marketing, ROI and validations, and more. Discover the most critical challenges and priorities facing digital health leaders in 2025!

We’re thrilled to announce the launch of The Ascent, our new newsletter dedicated to all things network effects and platform strategy in healthcare. In each monthly issue, we’ll explore: ? Expert analysis and fresh perspectives on vital network effects topics and companies in healthcare. ? Cross-industry insights on multi-sided platforms—and lessons for healthcare. ? Featured research and best practices from network effects experts. ? Recent funding news and analysis for digital health platforms. In this issue, we dig deep into how Tempus AI leveraged network effects to become the dominant data platform of the decade. Whether you're an innovator, investor, policy expert, or just curious about how platforms and marketplaces are transforming healthcare, The Ascent is your go-to resource for new ideas and inspiration. ?? Subscribe now: https://lnkd.in/gjf9Ph8B #TheAscent #NetworkEffects #DigitalHealth?

Today we released our inaugural list of the Top 42 Digital Health Platforms! The Top 42 is Summit Health Advisors’ annual ranking of the most promising network effects-driven companies in healthcare. These companies are forging new connections, efficiencies and trust across the healthcare system, helping to solve some of healthcare’s most deeply rooted challenges. Our research team evaluated over 775 digital health platform companies, across more than 25 indicators and 42 data points, to determine this year's most dominant, high-growth platform businesses. Check out the companies and our selection methodology here: https://lnkd.in/gryarJRE Congratulations to all the Top 42 companies! Lantern Nomi Health Wheel Innovaccer Medicom Technologies Inc. Carrum Health Angle Health b.well Connected Health Redox Vim Datavant DNAnexus Evidation Turquoise Health Clipboard Health Headway IntelyCare Medely Solv. Ada Health Papa Zocdoc Nomad Health Nursa Sesame Summus Healthcare Scan.com SafeRide Health Waltz Health Devoted Health Rightway Unite Us House Rx RxLightning Sempre Health Parachute Health Elation Health Aledade Inc Stellar Health DocStation

Apple. Salesforce. Walmart. Nike. Best Buy. The Home Depot. ? What do they each have in common? ? Each company began as a traditional pipeline business, meaning they created value in?a linear manner with a one-time flow of value from producer to consumer.? ? Yet, in order to achieve their current market dominance, each of these companies?embraced a?platform business strategy that unlocked new revenue growth, consumer loyalty and shareholder value. ? In our?most recent research, we explore how enterprise healthcare organizations can follow in the footsteps of these industry titans, and?leverage network effects to launch new offerings to enhance their core business. https://lnkd.in/g-98B59p