Rock Health Report: Digital Health Funding Increased by 45% in 2012

Digital health funding increased by 45% in 2012 according to recent digital health funding year in review report by Rock Health.

Rock Health, a digital health seed accelerator for startups today released their 2012 Year End Funding Report, an in-depth analysis report of digital health funding in 2012. VC funding of digital health grew significantly in 2012, with 45% more investment and 56% more deals than in 2011 reinforces the promise of utilizing technology to transform healthcare. By comparison, VC funding of biotech is down 4% and medical devices is down 16%; software is up 19%

The report produced by Malay Gandhi and Halle Tecco with help from Edison Chang, NEA, Nick Mathers, KickLabs, and Amy Puliafito, Rock Health sources data from Capital IQ, SEC, company websites, CrunchBase, NVCA and the Rock Health funding database.

Key findings include:

  • 134 digital health companies each raised more than $2 million dollars in 2012
  • Only 8 investors made 3 or more digital health investments, the remaining 171 identified investors made just 1-2 investments
  • Digital health companies based in the Bay Area and Boston area represent more than 40% of all 2012 funding
  • The largest five deals of 2012 represent more than 20% of the entire year’s funding
  • Four common themes representing more than 1/3 of all deals emerged during 2012
    • Personal health tools and tracking Health consumer engagement $143M
    • Tracking individual health with products and tools $237M
    • EMR / EHR Helping consumers with $108M Hospital administration healthcare purchases Capturing clinical information and surround applications
    • $78M Managing the business of a hospital
  • Top 3 companies for IPO include Practice Fusion, Castlight, and ZocDoc
  • The hubs for digital health investment have been established in the Bay Area and Boston
  • Women remain underrepresented as CEOs of digital health

The full report can be seen below:

For a full list of 2012 deals, funded company information, and deals by investor please visit rockhealth.com/research