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Digital Health Funding

By December 16, 2015December 22nd, 2015Commentary

Digital health encompasses all kinds of hip health technology–mobile, apps, big data, analytics, monitoring, price transparency, etc., etc., etc., and so on and so forth ad infinitum.  Lot of money poured into the sector, but it may be leveling off according to the latest Rock Health report.   (Rock Health Report)   $4.3 billion have been invested in digital health firms in 2015, matching the 2014 total.  This is supposedly 7% of all venture capital dollars and represents 278 funding rounds, with an average size of $15.6 million.  There were more late stage financings in 2015 than in earlier years.  34 companies that received funding in 2014 did another round in 2015.  The six largest transactions accounted for almost $1 billion of the total investment.  The largest categories attracting funding were consumer engagement at $613 million, wearables and biosensing, $489 million, personal health tools and tracking, $407 million, payer administration, $252 million and telemedicine at $234 million.  The biggest gains from 2014 by category were personal health tools, care coordination and life sciences technologies.  336 venture firms invested in at least one digital health deal (lemmings) and 49 funders did three or more (some people never learn).  A significant number of investors were corporate-sponsored funds.  The largest geographies for investment include the Bay Area, Boston, and New York City.  And some investors got to the exits, hopefully with a profit, as there were 180 digital health acquisitions in 2015, almost double the number in 2014.  Five digital health vendors went public in the year, but two are now trading below the offering price.  All in all, digital health looks fairly, well, healthy.

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