Digital health funding reaches $21.3B in 2021: 5 things to know

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Digital health startups raised $21.3 billion in the first three quarters of 2021, marking the sector's three highest-funded quarters ever, according to a report released Oct. 4 by Rock Health, a venture fund dedicated to digital health.

Five things to know:

  1. Digital health startups raised $6.7 billion more in the first three quarters of 2021 than in all of 2020. The sector raised $6.4 billion in the first quarter, $8.2 billion in the second and $6.7 billion in the third.

  2. There were 541 digital health investment deals during the first three quarters of 2021, with an average deal size of $39.4 million. In 2020, there were 464 digital health deals, with an average deal size of $31.5 million.

  3. Sixty-two of the 541 deals signed in the first three quarters of 2021 totaled $100 million or more.

  4. The most-funded digital health companies in 2021 have been those that use software to accelerate research and development, deliver on-demand healthcare services and  support disease treatments.

  5. Mental health is the top-funded therapeutic focus so far in 2021 with $3.1 billion raised. Startups focusing on cardiovascular disease, diabetes, primary care and oncology are also well-funded therapeutic focuses, as each category raised more than $1 billion during the first three quarters of 2021.

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