Investors target recession-resilient healthcare recruiting startups
The US had a shortage of nurses before 2020, yet the pandemic greatly exacerbated the problem as a large number of medical staff left the profession, citing increased stress and risks.
Now, a handful of tech-enabled marketplaces for nurses are trying to help solve the shortage by matching healthcare workers with hospitals. It is a sector that continues to attract investor interest despite the market downturn.
The latest example of VCs' appetite for this space is Incredible Health's $80 million Series B fundraise, led by Base10 Partners with participation from Andreessen Horowitz, Obvious Ventures and Kaiser Permanente. The round valued the 5-year-old San Francisco-based startup at $1.65 billion.
Other healthcare recruiting startups have mainly targeted temporary workers. Startups that help hospitals find so-called traveling nurses include , which grabbed $105 million Series D1 in June, and , which in March raised $50 million Series B at a valuation of $600 million.
The HR tech vertical has seen consistent growth in investor interest since mid-2020, reaching a record quarterly global deal value of $4.3 billion in Q2 2022.
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