Global digital health funding rebounds, will hit $7 billion in 2017
Venture capital and other investments in digital health companies are projected to reach as much as $7 billion globally in 2017, according to new analysis from Accenture. That’s after the sector sunk from that same $7 billion range in 2015 down to $6.4 billion in 2016.
Accenture noted that investments in digital health rose faster than it previously anticipated as companies are investing later in the startup lifecycle and focusing on affordability, access and care quality.
“Investors today are strategic to time and scale investments where they have seen success or can unlock unique value,” Brian Kalis, managing director of digital health services at Accenture, said in a statement.
Accenture’s research found that six strategic technology types received 73 percent of investor funding. Those are provider efficiency, virtual care, wearable devices, personalized medicine, enhanced diagnostics, and big data and analytics.
The firm analyzed more than 4,000 companies that received funding but excluded medical devices, biotech, consultants and companies that have already gone public.
Among the companies drawing big investments are Flatiron Group ($313 million), Health Catalyst ($259 million), Welltok ($239 million), 23andMe ($235 million) and ZocDoc ($223 million).
“Accenture anticipates that the market is well on target to hit the original estimate of $7 billion in annual start-up funding by the end of 2017,” the firm wrote in the report. “The biggest winners from digital health will be the patients who receive better care and enjoy an enhanced healthcare experience, which enables them to stay healthier in the long run.”