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Investors are pouring into the health tech sector, with venture funding roughly doubling in 2020. That’s good for individual companies, but when valuations begin to depart from reality, it takes discerning investors to pick winners in the space.

“It wasn’t always such a clear return profile, and there was a lot of skepticism,” Deena Shakir, a partner at Lux Capital, said Wednesday at the STAT Health Tech Summit. “But now everyone’s jumping on the train.”

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