We are pleased to bring you the Future of Healthtech 2023 Report, a comprehensive analysis of the trends, opportunities and challenges in today’s healthtech innovation market.We began 2023 with a cautious outlook, and there’s no disputing that this year has been difficult for stakeholders across the innovation economy. However, economic conditions have stabilized this summer and continue to show signs of strengthening. Public markets show early signs of improvement, inflation is decelerating, interest rates may be near their apex and the general pullback in investment has stabilized.Still, the current investment environment presents ongoing challenges, marked by fewer deals, slower investment pace, smaller check sizes and downward pressure on valuations. Companies face more scrutinous investors and are working against heightened demand for strong unit economics and paths to profitability. Many later-stage companies are revising growth projections and cutting costs to avoid fundraising this year to escape difficult valuation conversations. Despite these challenges, there are reasons for optimism. Performance of healthtech publics started to demonstrate resiliency this year, representing the first positive trends in over a year (page 20). Similarly, the M&A market has started to show signs of life with rising deal volume (pages 20-22). There are promising bright spots in investment, such as value￾based care, with an uptick in strategic acquisitions by large payers and retailers leading the way (page 11).