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Investors predict acquisition sprees from Amazon and Alphabet in 2021

HLTH; Samantha Lee/Business Insider This story is available exclusively to Insider subscribers. Become an Insider and start reading now. After the Teladoc-Livongo merger that shook up the digital health world, many investors are looking outside the industry for its next major deal. Tech giants like Amazon and Alphabet are the most likely buyers, investors told Business Insider. Both companies have signaled interest in expanding their healthcare offerings in recent months and after a year of record public returns, could have enough cash on hand to buy up hot upstarts instead of building products or software from scratch. 2020 was a banner year for healthcare mergers and acquisitions. But 2021 could put the last 12 months deals to shame.

Healthcare investors and VCs share 2021 predictions

This story is available exclusively to Insider subscribers. Become an Insider and start reading now. We asked healthcare and biotech venture capitalists from leading firms like Venrock and NEA to share their predictions for 2021.  2020 was a pivotal year for healthcare, shaped by the pandemic and a booming IPO market for digital health companies.  In 2021, VCs are anticipating a rough time for young startups, a big year for digital health IPOs, and increased attention for startups looking to address the healthcare industry s shortcomings.  It s difficult to imagine what 2021 has in store, after a pandemic-ravaged 2020. But when it comes to the healthcare industry, investors are predicting certain events and trends are bound to transpire in the coming year. 

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