Telemedicine tops digital health funding in 2020 at $3.2B: 4 things to know

Iain Carlos - Print  | 

The first nine months of 2020 saw a record $10.3 billion of global venture capital funding for digital health companies, up 43 percent from the $7.2 billion raised over the same time period in 2019, according to a Mercom Capital Group report.

Four report findings:

1. Digital health companies raised $4 billion in venture capital funding in 195 deals during the third quarter of 2020 compared to $2.8 billion raised in 161 deals in the second quarter of this year.

2. The top-funded digital health company categories in the first nine months of 2020 were: 

3. In total, 1,522 investors participated in the first nine months of 2020 compared to 1,171 investors over the same time period in 2019. 

4. The report mentions five major mergers and acquisitions that happened in the first nine months of 2020:

"Digital health and especially telehealth, has taken off amid COVID-19 and VC funding has already surpassed funding raised in any full year to date," Raj Prabhu, CEO of Mercom Capital Group, said in the report. "There were five IPOs in digital health, which is unprecedented and we also had one of the biggest M&A deals in digital health history in the third quarter."

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