• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

  • Opinion
  • Health IT
    • Behavioral Health
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Patient Engagement
    • Population Health Management
    • Revenue Cycle Management
    • Social Determinants of Health
  • Digital Health
    • AI
    • Blockchain
    • Precision Medicine
    • Telehealth
    • Wearables
  • Startups
  • M&A
  • Value-based Care
    • Accountable Care (ACOs)
    • Medicare Advantage
  • Life Sciences
  • Research

Rock Health H1 2018: Digital Health Funding Breaks $3.4B Across 193 Deals

by Jasmine Pennic 07/03/2018 Leave a Comment

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

Rock Health Mid-Year 2018: Digital Health Funds Tops $3.4B Across 193 Deals

Digital health funding reached a new record of $3.4 billion across 193 deals in the first half of 2018, according to Rock Health, a full-service venture fund dedicated to digital health.

The 2018 Midyear Funding Review reveals a maturing market with an increasing number of digital health companies are hitting key validation milestones, creating a stable funding environment based on proven outcomes;investors are taking notice and rewarding companies with larger deals. The average deal size significantly increased to a record $17.9M.

The report produced by Megan Zweig, Halle Tecco and Michelle Huang with help from Bill Evans, Danielle McGuinness and Mollie McDowell sources data from Capital IQ, SEC company websites, Crunchbase, NVCA, press releases and the Rock Health funding database.

Other key findings from the Rock Health report include:

– Large Digital Health Deals

Four companies raised over $100M in funding, representing about one-fifth of total funding so far in 2018, and were all raised by companies in the Bay Area: Heart Flow ($240M), Helix ($200M), Collective Health ($110M), Livongo ($105M).

– Seed Stage Deal Funding

 

The percentage of seed stage deals contracted from 23% in 2017 to 21% in H1 2018, while the number of B rounds grew.

– Back to Basics Mentality Returns: The recent downfall of Theranos and Elizabeth Holmes has instilled a back to basic mentality, according to David Shaywitz. As a result, more companies are pursuing validation at an earlier stage and investors have elevated their expectations, creating a competitive environment based not on hype, but on proven outcomes.

– Investors Sustained Commitment to Digital Health

 

Sixty-two percent of investors in H1 2018 had already participated in at least one digital health deal since 2011; last year, repeat investors represented 51% of total investors. This commitment likely contributed to the later-stage, larger deals completed this half as investors participate in follow-on rounds for their earlier investments.

– Sluggish Digital Health M&A Activity

With 60 disclosed digital health acquisitions in H1 2018, the sector is down from the height of 2015. Digital health startups are most likely to be acquired by other digital health companies, which make up half the acquirers in 2018 M&A transactions. The top three digital acquisitions in H1 2018 include Flatiron Health (Acquired by Roche for $1.9B), ABILITY Network (Acquired by Inovalon for $1.2B) and PillPack (Acquired by Amazon for $1B).

– Behavioral Health Startups Funding Increase

Behavioral health startups received more funding this half than in any prior six-month period, with a cumulative $273M for 15 unique companies (nearly double the $137M closed in H1 2016, the previous record half for funding of behavioral health companies). Of these 15 companies, more than half have a virtual or on-demand component.

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

Tagged With: Digital Health Funding, Rock Health

Tap Native

Get in-depth healthcare technology analysis and commentary delivered straight to your email weekly

Reader Interactions

Primary Sidebar

Subscribe to HIT Consultant

Latest insightful articles delivered straight to your inbox weekly.

Submit a Tip or Pitch

Featured Insights

2025 EMR Software Pricing Guide

2025 EMR Software Pricing Guide

Featured Interview

Paradigm Shift in Diabetes Care with Studio Clinics: Q&A with Reach7 Founder Chun Yong

Most-Read

Medtronic to Separate Diabetes Business into New Standalone Company

Medtronic to Separate Diabetes Business into New Standalone Company

White House, IBM Partner to Fight COVID-19 Using Supercomputers

HHS Sets Pricing Targets for Trump’s EO on Most-Favored-Nation Drug Pricing

23andMe to Mine Genetic Data for Drug Discovery

Regeneron to Acquire Key 23andMe Assets for $256M, Pledges Continuity of Consumer Genome Services

CureIS Healthcare Sues Epic: Alleges Anti-Competitive Practices & Trade Secret Theft

The Evolving Role of Physician Advisors: Bridging the Gap Between Clinicians and Administrators

The Evolving Physician Advisor: From UM to Value-Based Care & AI

UnitedHealth Group Names Stephen Hemsley CEO as Andrew Witty Steps Down

UnitedHealth CEO Andrew Witty Steps Down, Stephen Hemsley Returns as CEO

Omada Health Files for IPO

Omada Health Files for IPO

Blue Cross Blue Shield of Massachusetts Launches "CloseKnit" Virtual-First Primary Care Option

Blue Cross Blue Shield of Massachusetts Launches “CloseKnit” Virtual-First Primary Care Option

Osteoboost Launches First FDA-Cleared Prescription Wearable Nationwide to Combat Low Bone Density

Osteoboost Launches First FDA-Cleared Prescription Wearable Nationwide to Combat Low Bone Density

2019 MedTech Breakthrough Award Category Winners Announced

MedTech Breakthrough Announces 2025 MedTech Breakthrough Award Winners

Secondary Sidebar

Footer

Company

  • About Us
  • Advertise with Us
  • Reprints and Permissions
  • Submit An Op-Ed
  • Contact
  • Subscribe

Editorial Coverage

  • Opinion
  • Health IT
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Population Health Management
    • Revenue Cycle Management
  • Digital Health
    • Artificial Intelligence
    • Blockchain Tech
    • Precision Medicine
    • Telehealth
    • Wearables
  • Startups
  • Value-Based Care
    • Accountable Care
    • Medicare Advantage

Connect

Subscribe to HIT Consultant Media

Latest insightful articles delivered straight to your inbox weekly

Copyright © 2025. HIT Consultant Media. All Rights Reserved. Privacy Policy |