Digital health funding for October 2013 reached $131 million compared to October 2012 at $85 million, according to the latest October 2013 StartUp Health Insights Funding report. With only a total of 31 deals this past month, the market is starting to show maturation with investors placing more money in fewer startups. With that maturation in the digital health space, investors are setting the bar much higher for digital health startups, but rewarding those who can successfully prove their potential with a fundable solution.
The top 5 digital health funding deals in October 2013 were:
$15M Series A
Genetic diagnosis support services
$15M Series C
Helping consumers find affordable dental care
$13M Series C
Intelligent orthopedic devices measuring placement and performance
$12M Series B
Health and heart rate monitor for fitness and wellness
$10M Series C
Automated, rapid bacterial strain typing for complex samples
Other key highlights include:
- Early stage funding predominates in October with the big data sector market leading in growth
- Investors are starting to make small bets on sensors and wearables to curb their risk in case a competitor emerges as a market leader
- San Francisco-based Basis received significant media attention this month raising $11.75M closing its series B round of $23M, continuing this year’s optimism for the wearables market.
- Digital health startups are starting to create solutions around Affordable Care Act (ACA)
- Larger but fewer deals suggest maturation in the digital health industry. Investors are setting a higher bar for entrepreneurs but rewarding those who can demonstrate potential.
- Only 31 deals this month compared to 50 in October 2012 as well as a near 50% increase in over-all investment resulted in an increasing average investment to nearly $4.2M.
See more insights in the full report below: