In the world of digital health technology, last year saw funding reach the record-breaking amount of more than $4.3 billion, according to a Year in Review report carried out by Rock Health, a venture fund committed to backing initiatives in digital health. The report also saw consumerization in healthcare funding deals and driving mergers, with healthcare consumer engagements tools, personal health tools and tracking categories alone accounting for over twenty percent of the overall funding.
Deals and Dollars
Getting past the record-breaking $4.3 billion mark put the year 2015 on pace with 2014 when it came to total venture funding amounts for digital health companies. Digital health continues to be an attractive prospect for investors, and continue to receive much attention. Seven percent of all venture funding in 2015 went to digital health companies, with the average size deal reaching a new high for the year of over fifteen million dollars. The digital healthcare niche also saw the rise of another trend which is reflective of a huge trend in the healthcare industry overall: the growth of personal health tools and wearable tracking products, which saw a significant 222% rise in popularity over last year alone.
Rock Health data also found that over the course of 2014 and 2015, investors in digital health companies kept the momentum going. 2015 saw 49 firms closing at least three deals a piece, and overall, more investors entered the market, with 2015 seeing over three hundred venture firms investing in at least one deal each. The major players for 2015 are still California-based companies, which make up the majority of funding. To be specific, companies in the Bay area made up a huge forty percent of overall investments in digital health.
Changes in CEO Demographics
The end-of year report for 2015 shows that whilst men are still making up the majority of digital health CEO’s, women managed to set records in 2015. Of all the companies funded in 2015, there were twice as many female CEO’s as recorded the year before. Ten percent of all funded digital health companies in 2015 were headed by women. Moreover, thirty-one percent of all companies which were founded and funded during the year of 2015 had a female CEO.
Advantages of Digital Health
The investments made in digital health for 2015 were welcomed by both patients and healthcare professionals alike. Digital health products are revolutionizing the healthcare industry, from making storing patient data more secure to giving doctors and nurses better access to experienced colleagues through the use of telemedicine. Homecare management software such as that provided by carecenta.com allows for a more efficient and better quality level of home care, with care professionals having access to patient records, medical data and Medicare billing at the click of a button or the touch of a screen. Overall, digital health is becoming a well-established industry which is revolutionizing health care and medical research as we know it.
In 2015, the average investment deal in digital health was worth $140 million, and 180 M&A deals totaled more than $6 billion. Five venture-backed digital health companies went public.