Watching Wellness: VC Investment Trends and What’s Next

Venture Capital has shifted during COVID-19. It’s not unexpected, but there are some trends to watch. Thanks to the CB Insights platform, we can get a closer look at what is happening in the wellness space and others. Here are some of the key VC Investment trends, and what to watch for next.

Double Down Deal

In the first half of 2020, the number of deals and the amount of funding have both dropped. Funding is down to $4.6B, a drop of 24%. However, the number of deals only dropped 16%, which means each deal is worth less than it was last year.

Sleep on It

The advice to “rest easy” has never been harder to take, and investors know it. Deals in the sleep category jumped 79% from Q1 to Q2 2020. Where is the growth coming from? Digital therapeutics.

Mental Health in a Crisis

When you first look at the mental health category, there are some immediate big players that come to mind, like Mindstrong and Omada. What do companies who raise successful funding have in common?

Getting Fit(ter)

Two fitness startups have achieved $1B valuations this year. The first is Keep, a China-based startup focused on community fitness and online classes. The second is Classpass, a US-based app with a similar focus.

Uniting Separately

While uniting separately, each in our own homes, may seem like an introvert’s dream, it’s not for everyone. All this social distancing and at home fitness doesn’t mean the need for community is going anywhere. Wellness solutions that offer this kind of connection are gaining traction the longer the pandemic continues.

Meet the new Meat

The other thing COVID has done? First, there has been a large-scale disruption of supply chains. Second of all, 2020 has thrown other events at us that illustrate clearly how important sustainability is.


When it comes to self-care, both funding and deals are down, but there are some clear trends toward things like at home testing and virtual coaching and chatbots, similar to what is happening in the personal fitness space.

Inclusive Specialization

The wellness space like others has become more focused on being inclusive. This not only means a change in marketing approach, but also a change to products that are targeted more specifically at a demographic group. This is an opportunity for startups to show care for communities of all types.

Coach. Connect. Capitalize.