Digital health funding surpassed $1.9B in 2013, growing 39% over the previous year, according to Rock Health’s third annual, Digital Health Funding 2013 Year in Review.
In 2013, there was a total of 195 digital health deals above $2M, representing 186 distinct companies reaching 38% annual growth, and 134% growth versus 2011. An increase volume of early stage deals were also a key driver of digital health funding for year over year deal growth. The report also shows that digital health funding is continuing to outpace traditional healthcare sectors such as medical devices, pharma and software.
Largest Deals of the Year
The following six largest digital health funding deals accounted for nearly 20% of all funding in 2013:
|
Company |
Category |
$ of Funding Raised |
|
Evolent Health |
Population Health Management |
$100M |
|
Practice Fusion |
EHR and Clinical Workflow |
$85M |
|
OrthoSensor |
Digital Medical Devices |
$48M |
|
Proteus |
Digital Medical Devices |
$45M |
|
Fitbit |
Wearables & Biosensing |
$43M |
|
Health Catalyst |
Analytics & Big Data |
$42M |
6 Major Themes of 2013
The report found six major themes for 2013 that comprise almost 50% of all digital heath funding for 2013:
- EHR and Clinical Workflow -$245M
- Analytics and Big Data – $161M
- Digital Medical Devices – $146M
- Wearables & Biosensing – $136M
- Population Health Management – $126M
- Healthcare Consumer Engagement – $119M
Other key findings in the report include:
- 27 seperate investors made three or more digital health investments in 2013 (versus only 8 in 2012), and 75% of the 240 investors who closed a single deal in 2013 had no recorded deals in 2011 or 2012.
- Indiegogo has become the de facto crowdfunding platform for digital health comprise of 85% of the $9.2M tracked from 120 campaigns.
- Two major IPOs in 2013 generated more than $5B in market value.
- 2014 holds promise for eight digital health companies to reach IPO that have collectively raised well over half a billion dollars in funding
For more insights see Rock Health’s Digital Health Funding 2013 Year in Review report below.
