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Digital Health Startups Shatter Previous Funding Records Garnering $1.97B in 2013


Posted in Mobile Health by Arundhati Parmar on January 3, 2014

Funding in digital health startups reached an all time high in 2013, with some investors investing in multiple deals throughout the year.  


Funding of digital health companies in 2013 shattered all previous records with a combined investment of $1.97 billion, according to a report from Rock Health.

That amounts to a whopping 39% increase over digital health investments in 2012. The number of deals also increased - it grew 38% from 2012 and 134% from 2011.

Venture capital companies are eschewing all other healthcare sectors - be it software, biotech and medical device (no surprises with the latter, third sector) - to put all their eggs in the digital health basket.

Rock Health, which tracks investments that are at least $2 million, found that 186 digital health companies each managed to raise more than that amount in 2013.

Interested in digital health and funding?Register for the MDM Executive Summit, Anaheim Marriott, Feb.10-11 and hear from speakers from PA Consulting, Welldoc, Aberdare Ventures and Versant Ventures.

Here are other notable details from the report:

  • Out of 24 subcategories tracked, Rock Health identified six broad themes that accounted for nearly 50% of overall funding in 2013. They are electronic health records and clinical workflow ($245M); analytics and big data ($161M); digital medical devices ($146M); wearables and biosensing ($136M); population health management ($126M) and healthcare consumer engagement ($119M).
  • Year-over-year digital health investment growth can be primarily attributed to a higher number of early stage deals - in 2013, 51% of the overall number of deals were seed or Series A investments, compared to 39% in 2012.
  • 27 venture capital firms invested in at least three deals last year, compared to only eight who did the same in 2012.
  • The investor who did the most number of digital health deals - a total of seven - in 2013 was the Social+Capital Partnership.
  • California emerged as the largest beneficiary of digital health investment dollars with companies based there garnering more than $200 million in 2013.
  • In the realm of initial public offerings, digital health saw two major transactions that led to a combined $5 billion in market value in 2013.

Here is the full report:

Digital Health Funding 2013 Year in Review by @Rock_Health from Rock Health
 
[Photo Credit: iStockphoto user AlexSava]

 -- By Arundhati Parmar, Senior Editor, MD+DI
arundhati.parmar@ubm.com

 


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