• 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 Q1 2019: Digital Health Funding Breaks $986M

by Fred Pennic 04/02/2019 Leave a Comment

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print
Rock Health Q1 2019: Digital Health Funding Breaks $986M
Rock Health Q1 2019 report reveals digital health funding breaks $986M and signals end of the digital health IPO drought.

Digital health funding reached $986M across 61 digital health deals in Q1 2019, according to Rock Health, a full-service venture fund dedicated to digital health. The Q1 2019 funding represents about half of the $1.62B that was raised a year ago in Q1 2018 but in line with 2017 and 31% below 2016.

Compared to the $1.2B in Q4 2018, quarterly funding has averaged $1.4B over the past two years (Q1 2017-Q1 2019). Rock Health signals the $986M invested in this past quarter are somewhat below recent trends.

The Q1 2019 Rock Health report reveals that after a two-and-a-half-year drought, the digital health IPO market is heating up with Change Healthcare, Health Catalyst, Livongo; and Peleton filing for IPO this year. In addition, two new digital health unicorns, medication App Calm and healthcare analytics provider Health Catalyst emerged in horns in Q1 2019 reaching a $1B valuation signaling ongoing, strong valuations in the digital health market.

The report produced by Sean Day and Megan Zweig with help from Bill Evans, Danielle McGuinness, Eric Shan sources data from Capital IQ, SEC company websites, Crunchbase, NVCA, press releases and the Rock Health funding database.

Other key findings from the report include:

Digital Health Investor Mix

Over the previous five years, corporate venture capital (CVC) has consistently participated in between around a third of digital health deals. This stands in contrast to overall (non-healthcare) US corporate venture capital activity. During the same five year period from 2014 through 2018, corporates participated in 13% to 16% of venture deals—about half the rate of CVC investment in digital health.

The biggest provider investors over the past five years are  Kaiser Permanente, Mayo Clinic, and Ascension—each making more than 10 investments since 2014. They are three of only 11 corporate venture arms overall whose number of digital health investments is in the double digits in that time frame (GV leads the pack with 31).

Merger & Acquisition Activity

Q1 2019 was a slow quarter for digital health M&A with 21 startup acquisitions—32% below an average of 31 acquisitions per quarter across 2016-2018.

Consolidation within digital health continued with 13 startups (more than half of all M&A for the quarter) acquired by other digital health companies. Behavioral health companies were a particularly hot commodity.

Venture Deal Flow

Through the first three months of 2019, Rock Health reports a significant portion of their deal flow focused on care coordination and monitoring of disease—about 25% of our Q1 pipeline falls into those two categories.

This focus appears to be a response to improved reimbursement for digital solutions, specifically remote patient monitoring (RPM) and chronic care management (CCM). In particular, the Center for Medicare and Medicaid Services (CMS) went live with three new CPT codes2 for remote patient monitoring on January 1st, 2019.

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

Tagged With: Behavioral Health, Care Coordination, care management, Change Healthcare, chronic care, CMS, corporate venture capital, digital health, Digital Health Funding, Health Catalyst, healthcare analytics, IPO, Kaiser Permanente, M&A, Mayo Clinic, medicaid, medicare, medication, Patient Monitoring, remote patient monitoring, Rock Health, Rock Health Report, venture capital

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

Kinetik CEO Sufian Chowdhury on Fighting NEMT Fraud & Waste

Most-Read

2019 MedTech Breakthrough Award Category Winners Announced

MedTech Breakthrough Announces 2025 MedTech Breakthrough Award Winners

WeightWatchers Files for Bankruptcy to Eliminate $1.15B in Debt

WeightWatchers Files for Bankruptcy to Eliminate $1.15B in Debt

KLAS: Epic Dominates 2024 EHR Market Share Amid Focus on Vendor Partnership; Oracle Health Sees Losses Despite Tech Advances

KLAS: Epic Dominates 2024 EHR Market Share Amid Focus on Vendor Partnership; Oracle Health Sees Losses Despite Tech Advances

'Cranky Index' Reveals EHR Alert Frustration Peaks Midweek, Highest Among Admin Staff

‘Cranky Index’ Reveals EHR Alert Frustration Peaks Midweek, Highest Among Admin Staff

Madison Dearborn Partners to Acquire Significant Stake in NextGen Healthcare

Madison Dearborn Partners to Acquire Significant Stake in NextGen Healthcare

Wandercraft Begins Clinical Trials for Physical AI-Powered Personal Exoskeleton

Wandercraft Begins Clinical Trials for Physical AI-Powered Personal Exoskeleton

Chipiron Secures $17M to Transform MRI Access with Portable Scanner

Chipiron Secures $17M to Transform MRI Access with Portable Scanner

Abbott to Integrate FreeStyle Libre Glucose Data with Epic EHR

Abbott to Integrate FreeStyle Libre Glucose Data with Epic EHR

5 Ways New Trump Administration Tariffs Are Impacting U.S. Healthcare Now

5 Ways Trump Administration Tariffs Are Impacting U.S. Healthcare Now

iCAD, GE HealthCare Integrate to Advance Breast Cancer Detection with AI

RadNet to Acquire iCAD for $103M in All-Stock Transaction

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 |