Digital health funding in 2015: 9 things to know

Digital health funding in 2015 was right in line with 2014's funding, with each year reaching funding totals of $4.3 billion, according to Rock Health.

Here are nine more trends and things to know about digital health funding in 2015.

1. While the year ended on pace with 2014, the start of 2015 had lower funding levels than the prior year. However, by the end of 2015, there were 278 deals with an average deal size of $15.6 million. (Note: Rock Health only includes U.S. deals greater than $2 million, and data go through Dec. 8, 2015.)

2. Comparatively, the average deal size in 2014 was $14.7 million, but there were 294 deals.

3. This year, digital health accounted for 7 percent of total venture funding. Rock Health says this "steady" rate should ease fears of a digital health funding bubble. This is a slight decrease from 2014 when more than 8 percent of total venture funding was in digital health.

4. In 2015, 247 digital health companies each raised more than $2 million.

5. Internally, digital health companies demonstrated growth: The average number of employees rose from 44 in 2014 to 55 in 2015.

6. Six deals in 2015 totaled approximately $1 billion, which is 17 percent of all 2015 funding. Those deals were NantHealth , ZocDoc, 23andMe, Helix, Pulse and Collective Health. At $200 million in new funding, NantHealth closed the largest deal of the year.

7. The following six categories accounted for 51 percent of all digital health funding: healthcare consumer engagement ($613 million), wearables and biosensing ($489 million), personal health tools and tracking ($407 million), payer administration ($252 million), telemedicine ($234 million) and care coordination ($208 million). Rock Health notes this is the first year payer administration was among the top funded categories.

8. Five digital health companies went public this year, two of which are trading below their initial public offering price. Those that exited via IPO are Teladoc, Fitbit, MindBody, Evolent Health and Invitae.

9. "As we look to 2016, we are optimistic and excited about the growing role of consumer and the consequent B2C opportunities," the report says.

More articles on digital health:

Startup Insider: Lucro Marketplace
Sharp HealthCare CIO Ken Lawonn: Looking to the future of digital health
Startups in the news: 6 updates on healthcare startups

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