Digital health startups raised $29.1B in 2021

Across 729 deals, digital health startups in 2021 raised $29.1 billion, Rock Health reported Jan. 10 in its year-end funding report.

In 2020, the sector recorded $14.9 billion, meaning the investment in digital health almost doubled for 2021, Rock Health reported.

Digital health companies with a focus on research and development brought in $5.8 billion in funding as real-world evidence became a need during the COVID-19 pandemic.

The top spot for money-raisers by clinical indication was filled by mental health digital startups, which brought in $5.1 billion in 2021. 

"We expect digital health's value-based care transformation to extend well into the new year," the report said. "While many of today's value-based programs target Medicare and Medicare Advantage, commercial plans and Medicaid … might be next."


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