Digital health funding has exceed 2014’s record breaking year reaching $3.3B representing 30% TTM growth, according to Rock Health, a full-service venture fund dedicated to digital health. In a blog post, Rock Health reported that the average deal size is the largest to date at $15.8M, despite deal flow down 9% compared to 2014. Only 8 digital health companies made up over 50% of the quarter’s total funding.
The report produced by Teresa Wang and Rita Rajan with help from Malay Gandhi sources data from Capital IQ, SEC company websites, Crunchbase, NVCA, press releases and the Rock Health funding database.
Key findings include:
-Series D or later funding represented 16% of deals compared to 11% through Q3 2014
– The top 6 digital health categories for funding through Q3 2015 include:
|Category||Description||Total Funding||Largest Deal|
|Healthcare Consumer Engagement||Consumer tools for the purchasing of healthcare products and services or heath insurance (B2B and B2C)||$489M||ZocDoc ($130M)|
|Wearable and Biosensing||Wearable or accessory devices that detect specific biometrics and are designed for consumers||$430M||Jawbone ($300M)|
|Personal Health Tools and Tracking||Products to assist in the tracking of personal health (e.g. physical activity, nutrition, genetics) and health reocrds||$315M||Helix ($100M)|
|Analytics and Big Data||Data aggregation and/or analysis to support a wide range of healthcare use cases||$233M||Health Catalyst ($70M)|
|Telemedicine||Delivery of healthcare services (synchronous or asynchronous) through non-physical means (e.g. telephone, digital imaging, video)||$209M||Doctor on Demand ($50M)|
|Payer Administration||Management and administration tools for payers (e.g. fraud detection, third party payment, portal management)||$164M||PlanSource ($70M)|
– Digital diagnostics and life sciences commercialization tools expected significant growth through Q3 2015, 195% and 110% YoY growth
– Merger and Acquisition (M&A) activity has reached a total of 146 deals YTD with EHR and clinical workflow solutions accounting for 25% of acquired deal volume in 2015.
It is important to note that Rock Health’s digital health funding reports only includes disclosed US deals over $2M. and companies that are sector-agnostic with a healthcare vertical are excluded. Expect these numbers to vary in comparison to StartUp Health and others as we report on digital health funding trends.
For more information, visit https://rockhealth.com/data/digital-health-research-subscription/