Where digital health venture capitalists invested in 2019

Consumer-facing technologies outpaced digital health tools built for practices in the first quarter of this year.
By Tom Sullivan
02:03 PM
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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:

  1.        Data analytics at $557 million
  2.        mHealth apps at $392 million
  3.        Telemedicine at $220 million
  4.        Healthcare booking at $177 million
  5.        Clinical decision support at $107 million                            
  6.        Mobile wireless at $90 million
  7.        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.”

Twitter: @SullyHIT
Email the writer: tom.sullivan@himssmedia.com

Healthcare IT News is a HIMSS Media publication.