Q1 2015 digital health funding down year-over-year

2014 was a record year for digital health startup funding, with full year totals clocking in at $6.7 billion. However, Q1 of 2015 funding levels indicate a decline in funding, as the total funding fell for the first time since 2010, according to a StartUp Health Insights report.

The first three months of this year brought in $0.9 billion in funding for digital health startups, a dip from the $1.5 billion in funding in Q1 2014. Despite this dip, Q1 2015 funding totals are still higher than what they were in Q1 2013 ($579 million), according to the report.

Digital health startup funding totaled $6.7 billion overall in 2014. To compare, funding totals in 2013 were $2.9 billion. Despite the decline in funding in Q1 2015, it still appears to be on track to surpass 2013's funding totals.

Here are three more findings on digital health startup funding in Q1 2015.

  • Health Catalyst, a data warehousing and analytics provider, received the largest investment deal in Q1 2015 of $70 million.
  • The big data and analytics subsector was most active in terms of funding, with a total of $202 million invested in six deals.
  • The majority of investment deals occurred in the San Francisco area: $390 million for 25 deals.

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