Digital health funding reached $4.2B in 2016, down 8% from 2015, representing a compound annual growth (CAGR) from 2011-2016 of 30%, according to the 2016 Year End Funding Report report from digital health venture firm Rock Health. 2016 The annual report reveals 2016 was a strong year for digital health, but it also served as a reality check for founders and investors due to the election and uncertainty around the future of the ACA.
In comparison to StartUp Health’s digital health funding report which reported $8 billion invested in over 500 digital health companies, Rock Health only tracks deals over $2M reporting only 304 deals across 296 companies, closing with lower average deal size of $13.8M.
Other key findings from the Rock Health annual year-end report include:
