Where digital health venture capitalists invested in 2019
Venture investments in digital health dropped from $2.5 billion in the first quarter of 2018 to $2 billon in that same timeframe this year, according to Mercom Capital Group.
WHY IT MATTERS
Although the total was down from last year, it rose from the $1.4 billion invested during the final quarter of 2018 and, as Mercom noted, digital health companies have brought in approximately $37 billion since 2010.
TOP TECH INVESTMENT AREAS
The top technology categories that VC firms invested in:
- Data analytics at $557 million
- mHealth apps at $392 million
- Telemedicine at $220 million
- Healthcare booking at $177 million
- Clinical decision support at $107 million
- Mobile wireless at $90 million
- Health IT service providers at $80 million
“Digital health practice-focused companies raised $926 million in 66 deals in Q1 2019 and accounted for 46 percent of the total funding raised,” Mercom noted. “Consumer-focused companies raised $1.1 billion in 83 deals and accounted for 54 percent of the total $2 billion.”
ON THE RECORD
Mercom CEO Raj Prabhu in a statement: “Funding levels were down compared to last year in Digital Health in the absence of larger deals. M&A activity was also flat. However, Digital Health public equities experienced a turnaround in Q1 with 66 percent of them beating the S&P 500 compared to Q4 2018 when 63 percent of the equities we tracked performed below the S&P 500. Favorable market conditions have prompted several companies to announce IPO plans.”
Healthcare IT News is a HIMSS Media publication.