7 Facts About Digital Health Funding in 2014

Investors have already poured more money into digital health companies between January and June of this year than they did in all of 2013.

Here are 7 facts about the state of digital health funding so far this year, from a report from accelerator Startup Health.

1. In the last six months, there were a total of 248 digital health investment deals worth a combined $3.3 billion.

2. The Bay Area is still the main area for health IT; companies in this area have brought in $712 million in investor funding so far this year. However, hubs are growing in Boston, Chicago, southern California and New York City. In the Big Apple, digital health companies have raised $501 million this year, almost triple what the cities' companies raised during the first half of 2013.  

3. The most money is being funneled into big data and analytics firms. These companies have raised a combined $1.04 billion so far this year. The second-most lucrative category is technologies that help patients navigate the care system, with $925 million raised over the past six months.

4. Practice management company Ability's $550 million strategic growth equity investment was the largest deal so far in 2014. Other large deals include $135 million for clinical decision support company NantHealth and $130 million for care management startup Flatiron Health.

5. Mid-stage deals have grown. In 2014, 30 percent of deals involved Series B funding, a significant growth over 2013 and 2012.

6. The median deal has grown in size by 150 percent between 2013 and the first half of 2014. Median seed deal size has grown by 83 percent.

7. The most active investors in the digital health space in 2014 include Khosla Ventures with six deals and Founders Fund and SVAngels with five deals each.  



More Articles on Digital Health:

Hospitals' Top 10 Health IT Investment Plans for 2014
2014 Digital Health Startup Funding Already Surpasses 2013 Totals
The Rise of mHealth: 10 Trends

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